Mortgage Rates For January 3, 2019

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Day Three Of 2019:

Mortgage will start the day at similar levels seen on Wednesday as we head into day three of 2019. Mortgage Backed Securities and the 10y yield are are flat to slightly negative to start the day. The big news of the day is not related to mortgages nor the bond market but Apple. Apple announced it was lowering their guidance going Mortgage Home Informationforward. Stocks are selling off sharply this morning however bonds remain flat to slightly negative. Oil is up this morning nearing $48 a barrel. It appears the trade war with China is having a negative affect on companies doing business in China. Apple cited a sharp downturn in China and emerging markets as the cause for the lowering of guidance.

Mortgage Rates At The Open:

Mortgage Backed Securities were a tad bit negative at the open and the 10y yield was just above 2.64% to start the morning. As I mentioned yesterday; it’s been a rally led by Treasuries. Mortgage Backed Securities have a long way to go to catch up. As the spread between the two widens it makes Mortgage Backed Securities



Mortgage Rates - Conforming Loans


Mortgage Rates - FHA Loans


Will The Apple Selloff Affect Bonds?:

Possibly, if it gains steam throughout the day. However we need to keep in mind that not too long ago the 10y yield was at 3.25% and now it’s below 2.65% – a very significant move down. So if bonds don’t rally on the news or on a significant selloff that wouldn’t be too surprising. We also have the ADP employment report which might have a bigger affect than the Apple news.

Mortgage Applications:Mortgage Loan Application

Despite lower rates mortgage applications in the most recent survey declined nearly 10%. That is fairly significant and is way below the same time period last year. Mortgage volume is near a 20 year low as we start off 2019. I would expect that to pick up significantly next week once people get settled in after the holiday season.

Economic Data:

Today we have the ADP National Employment Report for December, ISM New York Index for December, ISM Manufacturing PMI, ISM Manufacturing Prices Paid for December (an important piece when it comes to inflation) and Vehicle Sales. To end the week we have the BLS Employment report, unemployment rate and Average Earnings for the month of December.

Next week we have Factory Orders and  ISM Non-Manufacturing on Monday. On Tuesday we have Consumer Credit. There are no major economic reports scheduled for Wednesday and on Thursday we have Wholesale Inventories and Wholesale Sales. To finish off the week we have the very important Core CPI report which could be a market mover.

Government Shutdown:Low 20 year fixed rate

Another day and we’re still no further along in seeing a resolution. Some homeowners, homebuyers and realtors are getting worried that the shutdown will affect loan applications from closing on time. Yesterday we discussed in detail the possible affect the government shutdown will have mortgage applications and it’s possible affect on mortgage rates. Borrower’s looking to close this week or next should be fine however beyond 1-2 weeks there are some concerns.

Currently We Are Seeing:

30 year fixed mortgage rates below 4.275%, 20 year fixed mortgage rates below 4.125% and 15 year fixed rates below 3.625%. Mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile. 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. At JB Mortgage Capital, Inc. we offer residential mortgage loans on 1-4 unit properties for both purchase and the refinance of a current mortgage. We have fixed rate mortgage loan programs and adjustable rate mortgage loan programs.

Low 30 year fixed mortgage rateCalifornia Page:

JB Mortgage Capital, Inc. is a mortgage company that serves all of California; from San Diego California to northern the county of Del Norte. We offer industry low mortgage rates along with one-on-one personal service from application to closing. We are one of the very few mortgage companies in the State of California to obtain an “Accredited” status with an “A+” rating at the Better Business Bureau; along with our “AAA” rating with the BCA, and a five star rating with Zillow and Mortgage101. We are licensed with the California Department of Real Estate and the National Multistate License System (NMLS). Living in California you’re presented with a lot of opportunities to compare mortgage companies and we hope you consider us when you’re looking for your next mortgage quote.