We’re starting off the month of June at the best levels of 2019. Economic slowdown fears, escalating trade war with China and possible tariffs on Mexico have caused investors to rush into the bond market which is helping mortgage rates move down.
With the significant move down in bond yields it’s important to remain cautious as a reversal is almost certain to happen at some point (see January 2019 and March 2019).
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 102.00 and the FNMA 4.0 coupon started the day at 103.07. The 10y Treasury yield opened the day at 2.11%.
For those who have read Friday’s post you’ll notice the huge move down in the 10y yield and small improvement to Mortgage Backed Securities. This has been a common theme for the last 2-3 weeks.
Economic Data This Week:
Today we have the ISM Manufacturing PMI, Construction Spending and ISM Manufacturing report. On Tuesday we have the ISM-New York Index report. On Wednesday we have the weekly Mortgage Market Index, ADP Employment report and ISM non-manufacturing PMI for May. ON Friday we have the monthly BLS jobs report along with Wholesale Inventories.
ISM Manufacturing PMI:
Expectations for the ISM Manufacturing PMI report were for a reading of 53.0 and the reading came in at 51.1. The miss is a positive for the bond markets and mortgage rates. Post report the 10y yield moved down to the 2.10% level.
Important Tips For A Successful Appraisal:
If you are refinancing your current mortgage or purchasing a home then you’re probably getting ready to do an appraisal. The appraisal is a necessary part of the loan process although some home loan applicants obtain an appraisal waiver (meaning they do not have to do an appraisal). This is something that is granted by either Fannie Mae or Freddie Mac and based on our experience is granted when the applicant had another appraisal done within the last two years.
For those of you have to an appraisal here are some simple suggestions to having a successful appraisal:
- Schedule the appraisal quickly so there are no delays in your loan processing
- Treat the inspection like you are selling the house. That means clean all the rooms, throughout the trash and mow the loan (at a bare minimum).
- During the inspection share with the appraiser any upgrades to your home or unique characteristics that might add value.
- If you know of some good comps then share that with the appraiser.
Doing these simple suggestions can really help the process.
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 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 our website.