Mid-week mortgage rates are showing signs of improvement as a below expectations Consumer Price Index (CPI) report is helping the bond markets open the day in positive territory. 30 year fixed mortgage rates remain the most attractive term right now along with 15 year fixed mortgage rates.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 101.95 and the FNMA 4.0 coupon started the day at 103.13. The 10y Treasury yield opened the day at 2.12%. Yesterday the 10y yield moved as high as 2.17% however since then we’ve seen improvements in the market. Today there is a 10y Treasury auction (1pm E which might have an impact on the direction of mortgage rates as we finish off the week.
If it does I’ll update the days post.
Economic Data This Week:
Today 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.
Mortgage Market Index:
There was a big jump in this week’s report. Last week the Mortgage Market Index came in at 417.8 and this week it came in 529.8. The Refinance Index came in at 1956.5 (last week it was 1335.6) and the Purchase Index came in at 278.4 (last week it came in at 253.1). Strong numbers for the mortgage industry as both homeowners and homebuyers move forward with some of the lowest mortgage rates in years.
Consumer Price Index:
Expectations are for a reading 2.1% y/y reading and a 0.1% m/m reading. The report came in with a y/y reading of 2.0% and a m/m reading of 0.1% (y/y = year over year and m/m = month over month).
This is a good report for Mortgage Backed Securities and mortgage rates. The lower than expected reading is probably not enough to send mortgage rates below their recent lows however it will help keep a lid on mortgage rates moving significantly higher.
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.