Mortgage rates for March 13, 2019 are at their best levels in over a year. Conforming fixed rate mortgages and FHA fixed rate mortgages are the most attractive programs for both refinance and purchase transactions. Yesterday’s 10y Auction, Brexit news and weaker than expected CPI data helped fuel an afternoon rally in bonds which ultimately improved mortgage rates heading into Wednesday.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at 102-09 and the 10y Treasury yield started the day at the 2.62% level. Post early morning economic reports: FNMA 4.0 was at 102-10 and the 10y Treasury yield was at 2.62%.
FHA Mortgage Rates
Economic Data – This Week:
Today we have 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.
Mortgage Market Index:
This week’s Mortgage Market Index showed improvement. The overall index increased from last weeks reading of 375.3 to 384.00. This was a result of the MBA Purchase Index increasing from 240.5 to 250.8. However the Mortgage Refinance Index showed a decline; last week’s reading was 1110.9 and this week it’s 1108.3.
Despite mortgage rates being near or at their one year lows for most of 2019 the overall market for purchase and refinance loan volume has been somewhat weak. As we move into Spring home builders, realtors and mortgage companies are hoping mortgage rates remain low and activity picks up.
This mornings Durable Goods for January report came in higher than expected. Analyst expected the report to show a -0.5% decline however the report came in at a 0.4% increase. This was a strong report considering where expectations were however it is significantly below Decembers reading of of 1.3% increase.
Core Producer Prices:
The Core Producer Prices report came in lower than expected; both month/month and year/year. Expectations were for the month/month report to show a 0.2% increase however the reading came in at a 0.1% increase. Expectations for the year/year report were for a 2.6% increase however the reading came in at a 2.5% increase. Obviously the final readings were not dramatically lower than anticipated and most likely will not have a major impact on mortgage rates.
This Mornings Data and Mortgage Rates:
Overall this mornings data was a mixed bag and will probably have little to no affect on mortgage rates. The good news is that the Producer Prices report came in below expectations (inflation report) which is good for mortgage rates and bonds.
30y Bond Auction:
Yesterday’s 10y auction was solid; will today’s 30y bond auction be similar? We’ll update today’s post later today if the results cause mortgage rates to move significantly before the end of the day.
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.