Mortgage rates for January 8, 2019 will start off the day at similar levels to slightly worse levels when compared to yesterday afternoon. Fixed rate mortgages, such as the 30 year and 15 year fixed rate, remain the most attractive terms available. Yesterday Mortgage Backed Securities (MBS) started the day in positive territory only to end the day slightly negative. Same thing for the 10y yield.
Today we’re seeing a the market open to flat (both Mortgage Backed Securities and Treasuries); will we see a move higher later this afternoon? Just before 7am PST the selling in MBS picked up and the 10y yield moved higher to 2.71%.
It appears we’ve probably hit a short-medium term lows and for the market/mortgage rates to move significantly lower we’ll probably have to see further deterioration in the economy (or some unforeseen event). It would not be surprising to see MBS/Treasuries move higher in the short term before leveling out.
Trade Talks With China:
Perceived progress in trade negotiations with China seem to be helping stocks however it’s not clear if it’s pushing bond yields up. The assumption is that an agreed upon trade deal with China is good for stocks and bad for bonds however at this point we’re not definitively seeing the “bad for bonds” part.
At some point they’ll reach a deal and depending on the structure of the deal it might put some pressure on bond yields and mortgage rates.
FHA Mortgage Rates
Conforming Loan Limits In California:
If you own a home in California you’re aware of the high cost of living in the sunshine state. Homeowners and homebuyers received some much welcome news late last year that the conforming loan limits in California were being raised.
Why is this good news? Conforming loans are generally easier to qualify for and can also come with lower interest rates compared to most jumbo loan programs. We offer a wide variety of conforming loan programs; both fixed rate and adjustable rate options.
Yesterday’s ISM Non-Manufacturing report came in weaker than expected however that wasn’t enough to keep the bond market rally going. Today we have the Consumer Credit report which is a good gauge on spending habits for the average consumer. On Wednesday we have an updated Oil report, Mortgage Market Index, Refinance and Purchase and an important 10y auction.
The next day we have Wholesale Inventories, weekly Unemployment and Wholesale Sales. To finish off the week we have the very important Core CPI report which could be a market mover.
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%. 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.
No major affects on mortgage rates or the bond market so far; that may change if the government remains closed for a long period of time. Following the President’s announcement that the shut down may last for “years”, various news reports claim the Senate Democrats have announced they are considering blocking all legislation that does not open the government.
The President announced that Tuesday he’ll be giving a major speech which will be carried by all the networks. Speculation is he’ll announce that he’ll be invoking emergency powers to start building the wall along the southern border with Mexico.
While the White House has said IRS refunds will be going out many are speculating that will not happen due to limited staffing levels at the federal agency.
JB Mortgage Capital, Inc.:
If you are looking to refinance your current mortgage or if you are purchasing a home please be sure to give us a call so that we may provide a no-cost/no-obligation quote. We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau. 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. From first time home buyer to seasoned real estate investor; JB Mortgage Capital, Inc. is ready to help with your next purchase.
And if you’re considering a refinance; we have many loan programs that offer great rates and terms for those looking to take cash out for a remodel, shorten their term from a 30 to a 20 or 15 year fixed term and for those simply looking to lower their interest rate.