Mortgage Rates For January 22, 2019

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Mortgage Rates At The Open:

Mortgage rates will start the day a bit improved compared to last week as Mortgage Backed Securities and Treasuries start the day in positive territory. 30 year fixed rate mortgages and 15 year fixed rate mortgages remain the most attractive loan programs for both purchase and refinance.

15 year fixed mortgage rateThe 10y treasury yield opened the day at the 2.75% level after nearly reaching 2.80% last week (bond market was closed yesterday). Last week Mortgage Backed Securities and Treasuries sold off pushing mortgage rates higher on news that the government shutdown was being resolved and the trade war with China was nearing an end.

Over the weekend we learned both stories turned out to be false; does this mean mortgage rates will improve this week? We’ll have to wait and see.

Mortgage Rate Forecast For February 2019:

What’s the most important thing about forecasting mortgage rates? Knowing that it’s better to be aware of what might cause one of three scenarios to happen. What do I mean by that? Well here are three things that can happen with mortgage rates next month:

  • Mortgage rates move down
  • Mortgage rates remain stable
  • Mortgage rates move up

So instead of saying “this is what mortgage rates will do….” think of the three main things that can happen, what might cause them to happen and when they do start happening you’ll have a better grasp on what mortgage rates might do. The mortgage rate forecast for February 2019 is based on that; understanding the three things mortgage rates might do and what will cause that to happen.

Mortgage Rates - Conforming Loans

 

Mortgage Rates - FHA Loans

 

Economic Data:20 year fixed mortgage rate

Today we have Existing Home Sales for December. On Wednesday we have the MBA Purchase Index, the MBA Refinance Index, Monthly Home Prices Index and the MBA  30 year mortgage rate index. There are no significant economic reports on Thursday and on Friday we have the Durable Goods report. Next week we have the Case Shiller Index and Consumer Confidence on Tuesday. On Wednesday we the ADP National Employment report and the Fed Decision. On Thursday we have the Core PCE report and Chicago PMI. On Friday we have the BLS Employment report and ISM Manufacturing PMI.

California Mortgage Rates:

We launched a new page recently; a page that complements the daily mortgage rate posts we work on each morning. With Mortgage Backed Securities holding their own mortgage rates in California have remained stable in 2019. Going forward our California Mortgage Rates page will be updated with important information about how you can save money on your next mortgage transaction and will include current mortgage market information as well.

30 year fixed rate mortgage 4.25%Currently We Are Seeing:

30 year fixed mortgage rates below 4.25%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. Also things like obtaining cash out, lower credit scores, higher Loan-To-Value ratios, rental properties and the subordination of a second mortgage will cause in an increase in your mortgage rate. To get the most up-to-date quote specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.

Fed Meeting Next Week:

Next week is the first FOMC (Federal Open Market Committee, aka the Fed) meeting of 2019. It’s safe to say that no one expects the Fed to raise rates at this meeting and everyone will be focused on what they have to say going forward. There is a good chance Mortgage Backed Securities, mortgage rates and Treasuries will move sideways between now and then. What will be interesting is if they say anything about the current government shutdown and the trade war with China.

JB Mortgage Capital, Inc.:Mortgage Pre-qualify

We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau (BBB). We also have the top rating with the Business Consumers Alliance (AAA). We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a Loan Officer. You can contact him directly at 1-800-550-5538.