Mortgage rates for January 9th, 2019 will start the day on the defensive as both the Mortgage Backed Securities and Treasuries open the day in negative territory. Generally speaking; mortgage terms will be a bit worse (loan costs/fees) to start the day. Yesterday Treasury yields pushed higher however Mortgage Backed Securities were a little reluctant and stayed relatively flat to slightly worseafter the morning hours. At the open we’re seeing the 10y yield at 2.73% and FNMA 4.0 is at 101.82.
Trade Talks With China:
Lots of rumors however not much news. Talks went for three days and nothing significant was announced. Many had hoped the recent discussion would lead to a trade deal or at a minimum a “trade truce”. Currently we’re not seeing a significant affect on Mortgage Backed Securities and mortgage rates.
As time goes on it’s becoming more evident that this is an extremely complex issue that will take time to resolve. While both economies are starting to feel the affects of a “trade war”, China’s economy has seen a greater slowdown compared to the United States.
Refinance In California:
Starting off 2019; refinance terms are very attractive compared to the previous 6-12 months. Making the decision to refinance is an important one and at JB Mortgage Capital, Inc. we do our best to answer the questions our clients have about refinancing their current mortgage. The reasons to do a refinance will differ from client to client however everyone has the same objective in terms of the outcome: to be in a better financial position then they were before.
Some look to refinance to lower their mortgage rate, others want to move from a 30 year fixed term to a 15 year fixed term, others may want to remodel their home so they’re looking to do a cash out refinance. The current general refinance guidelines are posted on our website.
FHA Mortgage Rates
Today we have an updated Oil report, Mortgage Market Index, Refinance and Purchase and an important 10y auction. Mortgage Refinance Applications and Mortgage Purchase Applications both snapped back significantly last week which is not surprising. Tomorrow we have Wholesale Inventories, weekly Unemployment and Wholesale Sales. To finish off the week we have the very important Consumer Price Index (CPI) report which could be a market mover.
The CPI report is expected to only show a moderate increase in inflation and it would be very surprising to see any significant surge in consumer prices. If the inflation report comes in significantly below expectations will that result in a big rally in Mortgage Backed Securities and in the Treasury market? That’s difficult to predict however I think the more likely scenario is a push down in yield below current levels and possibly establishing a “ceiling” at the levels we’ve seen this week.
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. The lowest refinance rates in California are typically for those with excellent credit however those with less than perfect credit are still able to get a low mortgage rate compared to what we were seeing just a few months ago.
Last night the President gave a speech about “border security” and the current government shutdown. Other than that; not much going on as far as progress goes. Mortgage rates and the Mortgage Backed Securities market have not been negatively affected by the shutdown however it’s something we will continue to watch. In our mortgage news update yesterday we mentioned a recent Zillow study that said the collective mortgage payment for all federal workers affected by the government shutdown totals over $250,000,000.00.
Connect With Us On Social Media:
The best place to connect with us, outside of koloans.com, is on Social Media. Multiple times per day Loan Officer Kevin O’Connor updates our twitter feed, @Rates01, with the most up-to-date mortgage rate and news information. You can also find us on Pintrest, Instagram, Reddit, and ScoopIt.
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. 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.