Mortgage rates continue to move higher this week after a big move down last week and an easing of trade tensions between the United States and Mexico. Despite the move, higher mortgage rates remain near 2019 lows. After moving to multi-year lows it’s not surprising to see mortgage rates take a break and move a bit higher as we settle into a new level for mortgage rates before the start of summer.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 101.84 and the FNMA 4.0 coupon started the day at 103.14. The 10y Treasury yield opened the day at 2.17%.
Are we going to see the market search for a range similar to market movement in January and March?
I think that is a likely scenario as the conditions for the most recent move down in the Mortgage Backed Securities market and the Treasury market are still in place. Mortgage rates tend to perform better in periods of market stability and ideally, we’d like to see that moving forward.
Tomorrow is a 10y auction and that could play a role in how bonds move along with the CPI report.
Economic Data This Week:
Today 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.
Core Producer Prices report:
Expectations were for a 0.2% increase and the reading came in as expected.
The Consumer Prices Index report comes out on Wednesday; that report can have a significant impact on mortgage rates as we move further into June.
The Benefits Of A 30 Year Fixed Rate Mortgage:
Are you deciding if you should go with a 30 year fixed rate mortgage? Here are the benefits of the most popular mortgage program out there.
- The mortgage rate is fixed; it never changes.
- The payment is fixed and it also never changes.
- Your mortgage payment is lower than a 20 year and 15 year fixed rate mortgage.
- If you want to you can always pay extra to pay down the balance faster.
These are the main benefits of a 30 year fixed rate.
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.