Mortgage Rates For July 8, 2019

Today’s Mortgage Rates:

Mortgage rates for Jul 8th, 2019 are near their multi-year lows as we move further into summer. Conforming, FHA and Jumbo fixed mortgage rates (refinance and purchase transactions) remain very attractive as bond yields remain low.

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 102.28 and the FNMA 4.0 coupon started the day at 103.39. The 10y Treasury yield started the day at the 2..03% level.

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Economic Data This Week:

Today we have Employment Trends. 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.

The biggest/most important report this week is the CPI report. This is the inflation report the Fed uses to gauge inflation levels. Expectations are for a 2.00% increase (annual) and a no increase for the month over month report. A report that comes in stronger than this could push mortgage rates higher. A report below this might end up having a positive impact on mortgage rates heading into the weekend.

The two auctions this week (10y and 30y) could also impact bond markets and mortgage rates. To keep yields and mortgage rates low we’d like to see strong demand for both the 10y auction and the 30y auction. Keep in mind that the Treasury market does not set mortgage rates (that originates in the Mortgage Backed Securities market) however they can have an influence in the overall direction of mortgage rates.

Expectations For A Fed Rate Cut Fade:

Before last weeks Employment report some investors and analyst were hoping for a Fed rate cut at the next meeting. Most investors and analyst thought that it was a long shot but some were anticipating a very aggressive Fed action before the economy slows even further.

On Friday those hopes for a Fed cut were dashed after a stronger than expected jobs report. Unless there is a significant event in the next few weeks it’s highly unlikely the Fed will cut at their next meeting; and also unlikely they’ll cut at the meeting after that.

No Fed cut could end up being good news for mortgage rates.

I know what you’re thinking but it’s true. Back in December 2018 the Fed raised rates and mortgage rates went down. And sometimes when the Fed lowers mortgage rates move higher. Why? Because a Fed cut could signify a turn around in the economy; and a positive economic move is a negative for mortgage rates (general rule of thumb for mortgage rates: good economic news is bad for mortgage rates and bad economic news is good for mortgage rates). Since a cut would be good for the economy it could turn out to be bad for 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.

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