It’s Fed Week! Heading into the March Fed meeting mortgage rates are not only at their best levels of 2019 they are at their best levels in over a year. Today’s mortgage rates are starting off the day at the same levels as Friday. 30 year fixed and 15 year fixed mortgage rates (Conforming and FHA) are the most attractive terms right now. The Fed meeting is this biggest news this week and what they say about the current economy, future expectations and their balance sheet reduction program may affect mortgage rates later in the week. March 2019 mortgage rates appear to be moving in the direction we discussed in our monthly review of mortgage rates. Heading into March we anticipated mortgage rates to remain within their range with a chance of moving slightly below that range as we move further into March. The improvements we’ve seen might change but for now mortgage rates are heading in the right direction.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security Coupon FNMA 4.0 opened the day at 102.30 and the 10y Treasury yield started the day at the 2.60% level. While the FNMA 4.0 Coupon has a little was to go to reach it’s best levels in over a year; the 10 year Treasury yield remains at it’s lowest levels in over a year. Will the Mortgage Backed Securities market follow Treasuries? They might if we receive some bond friendly news from the Fed later this week. Until then they might remain in a “wait and see” pattern before making any significant moves.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
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Economic Data – This Week:
Today we have the NAHB Housing Market Index for March. On Tuesday we have Factory orders (ex-transportation) for January and the start of the Fed meeting. Wednesday is the weekly Mortgage Market Index and the Fed decision. On Thursday we have the weekly Unemployment claims report along with the Philly Fed Business Index for March. to finish off the week we have Existing Home Sales and Wholesale Sales and Inventories.
The Fed Decision – Wednesday:
Starting tomorrow is the two-day Federal Open Market Committee (FOMC aka the Fed) with announcement to come Wednesday 2:00pm (EST.). With this meeting we’re seeing the return of the “dot-plot” and that could have significant influence over the direction of the bond market and mortgage rates. Also of interest to investors is what the Fed plans to do with their balance sheet reduction program. In recent weeks there has been several news stories that the Fed may announce an ending to the balance sheet reduction program which might end up being a positive for bonds and possibly mortgage rates.
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.