Mortgage rates for June 10, 2019 are starting off the week a bit higher after the strong move down last week. Over the weekend President Trump announced he was not going to implement tariffs against Mexico. The initial bond market response has been a small move higher in yield.
Later in the week there is the Consumer Price Index (CPI) report which sometimes has a huge impact on bond markets and mortgage rates.
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 103.25. The 10y Treasury yield opened the day at 2.14%.
Economic Data This 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.
The Fed and Mortgage Rates:
With news that the Fed may “lower rates” this year many people are starting to ask the question; if the Fed lowers rates will mortgage rates also move lower?
Before I answer that question it’s necessary to understand one important thing: The Fed does not set mortgage rates. Mortgage rates originate from the Mortgage Backed Securities market however that market is influenced by what the Fed does.
If the Fed lowers rates it does not mean that mortgage rates will automatically go lower. In fact, mortgage rates have a history in which they move in the opposite direction. Just look at December 2018. The Fed hiked 0.25% and mortgage rates moved significantly lower following that hike.
So if the Fed lowers later this year it’s not 100% certain mortgage rates will move lower; in fact, there is good reason to believe that they might move higher. The reason is the market moves ahead of Fed action (so they’ve already moved lower) and if the Fed was to lower then that could be seen as a positive for the economy. Positive actions that are implemented to boost economic output are a negative for bond yields and 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 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.