Mortgage rates for June 28, 2019 are near multi-year lows as we head into the weekend. All eyes are on the G20 summit and what might happen between President Trump and President Xi of China.
The outlook for July is positive however there are still many risks that might cause mortgage rates to move higher. When considering a new mortgage avoid losing out on what is available in hopes of further improvements.
Could mortgage rates move lower? Sure; but it’s not likely to happen any time soon when you consider two important facts:
- We’ve seen a significant move down in 2019 and mortgage rates are at multi-year lows in anticipating of the economy slowing later in 2019.
- Mortgage companies are near capacity with applications; there is little incentive to lower rates even further considering the surge in loan application volume.
As mentioned they could go lower but the more likely scenario for July-August is they remain at this general level or possibly move higher if the economy improves and/or a China trade deal is reached.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 102.25 and the FNMA 4.0 coupon started the day at 103.34. The 10y Treasury yield started the day at the 2.01% level.
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Economic Data This Week:
Today we have the Personal Income report, Core PCE Inflation, Consumer Inflation Expectations, Consumer Sentiment and the Chicago PMI report.
Core PCE Inflation:
Expectations were for a reading of 1.6% and that’s exactly what was released. This is somewhat good news for bonds and mortgages (unexpectedly high inflation is bad for mortgage rates).
Expectations were for a reading of 53.1 however the reading came in well below that; 49.7. This is not a good report for the economy as it’s the first major regional report to show contraction. That being said; negative news for the economy is generally a positive for mortgage rates as buys expand their investments into bonds (more specifically Mortgage Backed Securities).
Consumer Inflation Expectations:
This report came in slightly higher than last month and had no real impact on the market (2.7 vs 2.6 for the 1yr and 2.3 vs 2.2 for the 5 year expectation)
Expectations were for a reading of 98.0 and the final reading came in at 98.2.
Economic Data Next Week:
On Monday we have the ISM Manufacturing PMI report. On Wednesday the market closes early for July 4th however before that we have the Mortgage Market Index, ADP Employment Report, and the ISM Non-Manufacturing Report. On Friday we have the monthly Jobs report.
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 the our website.