Mortgage Rates For July 5, 2019

Today’s Mortgage Rates:

Mortgage rates for Jul 5th, 2019 are under pressure after a stronger than expected Employment report (more on this below). Conforming fixed, FHA fixed and Jumbo fixed mortgage rates are finishing the week just above multi-year lows.

Mortgage Rates - Conforming Loans

Mortgage Rates - FHA Loans

Mortgage Rates - Jumbo Loans

Mortgage Backed Securities and Treasury Snapshot:

Mortgage Backed Security FNMA 3.5 started the day at 102.48 and the FNMA 4.0 coupon started the day at 103.48. The 10y Treasury yield started the day at the 1.97% level.

Post Employment report release the 10y yield continued to move higher from Friday’s low of 1.94%. Within 10 minutes of the report the 10y yield was 2.00%. FNMA 3.5 was down to 102.36 and FNMA 4.0 was down to 102.36.

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Economic Data This Week:

Today we have the monthly Jobs report.

Markets close early on Wednesday, remain closed on Thursday and will reopen on Thursday.

BLS Employment Report:

Expectations for the BLS Employment report were for the following:

  • 160,000 jobs created
  • 3.6% unemployment rate
  • 0.3% average earnings increase

The report came in stronger than expected for the number of jobs created (224,000) however earnings growth came in below expectation (0.2%). So why the big reaction in the bond market?

Revisions and the recent move down in yield

Revisions to last month added fuel to the selloff that began post report. Last months earnings component was raised as well as the number of jobs created. Overall this is a good report for the economy but not so good for low bond yields and low mortgage rates.

Also playing into the selloff is the recent rally in bonds that have sent mortgage rates to multi-year lows. At some point bond investors would sell some of their positions. After a stronger than expected jobs report it makes perfect sense that we’d see a reversal.

Is this the end of low mortgage rates in 2019?

I doubt it. While we may see a bump higher in the short term; the bigger picture of a weakening economy is still in place. The average number of jobs created for the last two months is 148,000 per month; decent but not booming. Regional Fed reports, Durable Goods and ISM reports are showing things are slowing down and we also have the continuation of the trade war with China.

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.

Loan Officer Kevin OConnor

Loan Officer Kevin O’Connor:

Kevin grew up in California and works with clients throughout the state. From the initial quote to the application to the final closing; Kevin works directly with each and every homeowner and encourages his clients to ask questions so that they’re better informed. He updates on daily basis and you can connect with him on social media: Twitter Rates01