Mortgage rates will start the day near their one year lows as both the Mortgage Backed Securities market and the 10y yield open in positive territory. 30 year fixed rates and 15 year fixed rates remain the most attractive loan programs. The FNMA 4.0 coupon opened the day at the 101.81 level and the 10y Treasury yield opened the day at the 2.74% level. Yesterday’s 2y and 5y auctions were met with solid demand and along with a declining stock market helped pushed yields lower. The next four days will be interesting with all the economic data that is coming out and we have the Fed meeting.
The Fed Meeting Starts Today:
Today is the start of the two FOMC meeting (Federal Open Market Committee) and tomorrow afternoon they release their statement about their plans and the current state of the economy. No one is expecting the Fed to raise interest rates at this meeting (that would be a huge surprise and bad for mortgage rates) however analyst and investors want to know what the plan is moving forward and how they see current economic conditions.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
The Dot Plot:
An important part of the Fed statement is the not so famous “dot plot”. Our friends over at Mortgage News Daily provide a lot of good information about what the Fed dot plot is and why it’s important. Simply put; the Fed dot plot is a graph showing where Fed members believe their interest rate will be in the future. It’s a simple yet powerful way to see how the Fed’s future economic expectations.
Today we have the Case Shiller Index and Consumer Confidence. On Wednesday we have the weekly Mortgage Market Index, Refinance Index and Purchase Index along with the ADP National Employment report, Advanced GDP and the Fed Decision. On Thursday we have the Core PCE report, Chicago PMI Employment Wages and Personal Incomes. On Friday we have the BLS Employment report, ISM Manufacturing PMI, Retail Sales and Durable Goods.
Average Mortgage Payment In California:
We recently updated our average mortgage payment in California page. We cover everything from various loan payment scenarios, why it’s hard to calculate the average mortgage payment and three different reports about the national average mortgage payment. We also touch on what impounds are and why you should consider adding them on to your monthly mortgage payment.
Currently We Are Seeing:
30 year fixed mortgage rates below 4.375%, 20 year fixed mortgage rates below 4.25% 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. He’ll take the time to go over our various low rate loan programs.
Trade War Tensions Increase:
Yesterday the Justice Department announced a formal indictment of Meng Wanzhou she is the Chief Financial Officer for Huawei and was recently arrested in China. Obviously this will not help trade negotiations and it may even make things worse. China has repeatedly called for her release. If trade tensions get worse this might further damage the economy and push mortgage rates lower.
JB Mortgage Capital, Inc.:
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.