Mortgage rates for March 21, 2019 are starting off the day at their best levels in nearly 18 months. Yesterday’s Fed meeting sparked a rally in bonds and mortgage rates improved due to the Fed expressing concerns about the economy moving forward (more on the Fed meeting below).
How Low Will Mortgage Rates Go:
Predicting mortgage rates is difficult at best. The best thing a homeowner or homebuyer can do is decide if current mortgage rates match their needs. If so then you should not hesitate to move forward and lock in your rate/terms. There are so many factors that go into mortgage rates you should avoid predicting day-to-day mortgage rate movement based on one event. Especially if you are working with a Loan Officer that does not know what they are doing.
If you are working with an experienced Loan Officer (at least 5-10 years of experience) and they are knowledgable about how mortgage rates are determined then you can set up a plan for locking in terms. This is one of many reasons why it’s so important to work with an experienced and knowledgable Loan Officer that works for a highly rated mortgage company.
What Could Push Mortgage Rates Higher:
What are the risks associated with mortgage rates reversing course? One event among many that could push mortgage rates higher is if the US and China reach a meaningful trade deal. Another important factor is lender volume. If lender volume surges in the next few weeks as mortgage rates reach new lows you might see mortgage rates move higher even if the bond market moves lower. The reason is simple; mortgage companies can only handle so many loan applications and once they reach capacity they increase rates to slow the volume down.
If current mortgage rates are at a level that make sense then the prudent decision is to move forward and lock in terms. And if you decide to work with JB Mortgage Capital, Inc. we offer our clients a float down option as well; in-case mortgage rates move significantly lower than your locked in rate/terms.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.66, and FNMA 3.5 opened the day at 101.08. The 10y Treasury yield started the day at the 2.50% level.
FHA Mortgage Rates
Jumbo Mortgage Rates
Fed Meeting March 2019 Review:
For a more in depth review of yesterday’s events please be sure to visit our Fed Meeting March 2019 post. Here is a brief overview of what happened yesterday and how the market reacted to the Fed announcement:
- The Fed does not anticipate raising rates any time soon; in fact they believe the next hike won’t come until 2020.
- Their balance sheet reduction program is coming to an end. Starting in May they’ll begin the process of ending the program and by September it will be finished.
- They don’t see inflation being an issue over the next 12 months.
- The Retail Sales report shows the consumer is pulling back spending which is a negative for the economy.
The bond market reaction was significant as the 10y yield pushed significantly lower and MBS prices pushed higher. As mentioned above; mortgage rates are now near their 18 month low as we move further into March.
Economic Data – This Week:
Economic Data – Next Week:
On Tuesday we have Building Permits (February), Housing Starts (February) and Consumer Confidence (March). On Wednesday we have the Mortgage Market Index and on Thursday we have the final Q4 GDP reading and Pending Home Sales (February). To finish off the week we have the Personal Income report (February), Consumer Spending (January), Core PCE (January), Chicago PMI (March), Consumer Sentiment (March) and New Home Sales (February).
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.