Heading into the weekend mortgage rates are near their two-year low as bond markets continue to rally. Conforming and FHA fixed rates moved lower this week after the Fed meeting on Wednesday (see Fed Meeting March 2019).
Today’s move in the bond market was sparked by global economic slow down concerns – more on this below.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.78, and FNMA 3.5 opened the day at 101.27. The 10y Treasury yield started the day at the 2.47% level.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
German Manufacturing Is Pushing Mortgage Rates Lower:
I’m guessing many of you are thinking “what???” but it’s true.
Overnight there was a German manufacturing report that came out and it was dismal. It was so bad it pushed the German 10y yield below 0.0% and thus fears of a global recession intensified. Germany is a major player on the world economic stage and when their economy slows the world economy will feel it. That report and the move in German bonds is pushing the U.S. 10y yield lower which is also sparking a rally in Mortgage Backed Securities.
Mortgage Rates Next Week:
So what does all this mean for mortgage rates as we enter the last week of March?
If this rally holds mortgage rates should be improved next week. Keep in mind that improving mortgage rates means the cost to obtain a certain rate will probably improve. One thing to keep in mind; avoid the trap that many homeowner fall into when mortgage rates improve. What’s the trap? Trying to pick the exact bottom in mortgage rates. When you do that it’s almost certain you’ll end up paying more than originally planned.
The best thing a homeowner can do is make a decision based on their financial situation and determine if current mortgage rates improve their financial outlook. If so move forward with locking in a rate/terms. If not then be patient but avoid passing up an opportunity if one becomes available.
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Economic Data – This Week:
Today we have Existing Home Sales and Wholesale Sales and Inventories.
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.