Mortgage rates for today March 07, 2019 will be similar to start the day as both the Mortgage Backed Securities Market and Treasuries are in positive territory during early morning trading. Heading into the BLS Employment report mortgage rates remain within the range started back in January. 30 year fixed, 20 year fixed and 15 year fixed rate mortgages continue to outperform other available loan programs.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at the 102.01 level and the 10y Treasury opened at the 2.69% level. After the opening they rallied on bond positive news out of the European Central Bank (ECB).
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
The ECB and Mortgage Rates – Are They Really Connected:
Recently we’ve heard a lot from the ECB and US bond markets have reacted favorably. This morning they were out with various statements that confirm the European economy is slowing and inflation risks are going away. 2019 GDP growth estimates were reduced from 1.7% to 1.1%. ECB inflation estimates for 2019 were reduced from 1.6% to 1.1%. In addition to this they will be providing “cheap loans” to bank.
Once the US bond markets digested the news from the ECB bonds began to rally. The Mortgage Backed Security FNMA 4.0 improved to 102.04 and the 10y yield moved down to 2.66%. This puts both bond markets back in their range after moving out of it last week due to a stronger than expected GDP report. Since consumer mortgage rates are directly tied to the Mortgage Backed Securities market the ECB does sometimes play a role in terms of mortgage rate direction. One can look at it like this: The ECB can influence the US Treasury market and the US Treasury market can influence the Mortgage Backed Securities market which ultimately dictates consumer mortgage rates.
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Back In The Range:
If you’re a regular reader you’ll remember we’ve talked a lot about the Bond market range and the mortgage rate range. Last week the bond market range was broken while mortgage rates remained within their recent range (barely). For the Mortgage Backed Security FNMA; it traded several days below 102.00/101.31 and for the 10y Treasury the yield pushed above 2.72%. This week it’s been a different story as bond investors have moved backed into the market prior to tomorrow’s BLS Employment report. It’s been a positive development as many mortgage professionals were concerned that the bond market selling would continue and thus push mortgage rates higher.
Economic Data – This Week:
Today we have the weekly Unemployment claims, Labor Costs, Productivity and Consumer Credit. On Friday we have the BLS Employment report, Wholesale Inventories and Wholesale Sales. Next week we have three big reports: Retail Sales, Durable Goods and CPI (Consumer Price Index). If you had to pick one of the three to watch (stress had to) then you’ll want to keep an eye on the CPI. Next would be Retail Sales (last report was abysmal) and then Durable Goods.
Currently We Are Seeing:
30 year fixed mortgage rates below 4.375%, 20 year fixed mortgage rates below 4.25% and 15 year fixed rates below 3.75%. 30 year fixed FHA mortgage rates are below 4.25%.
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.
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. You can contact him directly at 1-800-550-5538.