Mortgage rates for Jul 9th, 2019 are under pressure as bond yields move higher. Loan application volume for both purchase and refinance transactions continues to be strong as we move further into summer.
Conforming, FHA and Jumbo fixed mortgage rates remain near their summer time lows.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 102.20 and the FNMA 4.0 coupon started the day at 103.34. The 10y Treasury yield started the day at the 2..06% level.
In the near term it would not be surprising to see bond yields rise after the significant decline in yields over the 6-8 weeks.
How high could the 10y yield go?
The 10y yield could move up to 2.15% before it would be come a long term issue with bond yields staying in this low range. Keeping multi-year low mortgage rates through out the summer is what most analyst are anticipating however we could see days or weeks in which mortgage rates move higher do to bond yields moving higher.
Risks to the market include resolving the trade issues with China and better than expected economic reports that show the economy expanding at a faster pace than anticipated.
Looking forward to tomorrow; there is a 10y Note auction. We’ll be paying close attention as to the results which might give us an indication as to how investors feel about current bond market levels. A strong auction might indicate that investors will continue to be buyers moving forward (at these low levels). This would be a positive for mortgage rates moving forward.
A weak auction will probably end up pushing yields higher and mortgage rates.
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Economic Data This Week:
On Tuesday there is no important economic data being released. On Wednesday we have the weekly Mortgage Market Index, Wholesale Inventories and Wholesale Sales. On Wednesday there is also a 10y Note auction (could be important to bonds and mortgage rates). Thursday we have the weekly Jobless claims and the Core CPI report (there is also a 30y Bond auction that may impact markets). On Friday we have the Core Producer Prices report.
One of the continued bright spots in the economy is job creation and low unemployment numbers. While overall job creation has slowed in recent years; we are in the late stages of an economic expansion. During the late stages of an economic expansion it’s not unusual to have lower job growth.
Next week we have the Retail Sales report which has showed signs of weakness in 2019. There is also the Philly Fed Index and Housing numbers all of which may impact bond prices/yields along with mortgage rates.
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates for both refinance and purchase transactions, personal one-on-one service and we have an A+ rating with the Better Business Bureau (BBB). We also have a 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 mortgage professional. When it comes to mortgage rates 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 obtain 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.