Mortgage rates for June 07, 2019 are a bit better after a weaker than expected Employment report (details below). Heading into the weekend mortgage rates are at their 2019 lows as investors in bonds (Treasuries and Mortgage Backed Securities) continue to fear an economic slow down in the United States along with the trade war with China and new tariffs being placed on Mexico.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 102.02 and the FNMA 4.0 coupon started the day at 103.23. The 10y Treasury yield opened the day at 2.12%.
Post Employment report the 10yr yield was at 2.06%, FNMA 3.5 was at 102.22 and FNMA 4.0 was at 103.33.
Economic Data This Week:
Today we have the monthly BLS jobs report along with Wholesale Inventories.
Expectations for today’s employment report were:
- 185,000 jobs created (236,000 created the previous month)
- 0.3% increase in wages
- 3.6% unemployment rate
However the reading this morning came in at:
- 75,000 jobs created
- 0.2% increase in wages
- 3.6% unemployment rate
Overall a positive report for mortgage rates heading into the weekend. Will it be enough to push bond yields and mortgage dramatically lower? Probably not but it will definitely help keep mortgage rates steady before next week’s Consumer Price Index (CPI) report. The CPI report is the Fed’s number one report that measures inflation.
Inflation is very important to the bond market and residential mortgage rates. Definitely a report to keep an eye on.
Wholesale Inventories Report:
The Wholesale Inventories Report comes out later today. If there is a significant impact on the bond market and mortgage rates I’ll update the post with that information.
Economic Date Next Week:
On Tuesday we have Core Producer Prices for May. On Wednesday we have the weekly Mortgage Market Index and the Core Consumer Prices Index (CPI). On Thursday we have Export and Import Prices and on Friday we have Retail Sales, 1yr and 5yr Inflation Outlook along with Consumer Sentiment.
The big report is the CPI report along with Retail Sales. Next week we’ll also be keeping an eye on the trade war with China and the new tariffs possibly being placed on Mexico.
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 our website.