Mortgage rates for today March 08, 2019 will start the day at similar levels after today’s early morning Employment report. Mortgage rates will finish out the week within their recent range. 30 year fixed mortgage rates along with 15 year fixed mortgage rates remain the most attractive for home owners. This mornings Employment report was a mixed report for bond markets and mortgage reports (more on the employment report below).
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at the 102-08 and the 10y yield started the day at the 2.630 level. Post BLS Employment report the FNMA 4.0 coupon remained at the 102-08 level however the 10y Treasury yield declined to 2.61% due to a drastic drop in the number of jobs created in February. If the 10y yield should move below 2.60% Mortgage Backed Securities might ultimately join in the rally heading into the weekend.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
Economic Data – This Week:
Today we have the BLS Employment report, Housing Starts, 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.
Request A Low Rate Mortgage Quote:
Employment Report and Mortgage Rates:
This morning’s Employment report was dismal in terms of the number of jobs created in February. Expectations were for 180,000 jobs created however the reading came in at 20,000 jobs created. Several prominent news channels inferred that the decline in jobs was due to the weather however weather in February is always bad. The good news from the report was that wages came in higher than expectations. The reading came in at .4 and expectations were for .3. While higher wages can lead to inflation (which is bad for bond markers and bad for mortgage rates) when earnings are viewed over the last 6 months today’s reading balances out previous months in which wage increases were and below expectations. The Fed as said for a while now that they are not overly concerned about wage inflation.
The response by mortgage rates to the lower jobs created will most likely be muted. Sometimes when data comes in drastically lower than expectations analyst and investors tend to believe the data may not accurately reflect what is going on. They will want to see another month or two of jobs reports before thinking this is a trend to be concerned about. What today’s jobs report will do is help keep bonds and mortgage rates within their range rather than moving above the range (which is something that happened to bonds last week).
Also this morning was the Housing Starts report and it came in higher than expected. The reading of 1.230 was higher than last months reading of 1.078. This is good news for home builders who have struggled in recent months due to a lack of demand from potential home buyers. With mortgage rates still well below their 2018 highs and the fact that were entering the Spring months; home buyers should start returning to the market over the next 4-8 weeks. If mortgage rates were to reverse course and head higher this might present a serious issue for home builders during the busiest time of the year.
Economic Data – Next Week:
On Monday we have Retail Sales (January). On Tuesday we have the CPI report and there is a 10yr Note Auction. Wednesday there is the weekly Mortgage Market Index, Core Producer Prices report, Durable Goods and a 30yr Bond Auction. Thursday we have the weekly Unemployment Claims, Export and Import Prices and New Home Sales. Friday we have the Consumer Sentiment report along with the 1y and 5y Inflation Outlook.
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.