Today’s Mortgage Rates:
Mortgage rates are near their two-year lows as we finish off the month of March. Six months ago 30 year fixed conforming mortgage rates were pushing 5.00% and nearly everyone thought they would be significantly higher than that in 2019.
Things have dramatically changed and now we’re seeing near two-year lows for mortgage rates. Volume is picking up as homeowners who have been waiting to refinance start to move forward and lock in terms.
Important note about mortgage rates and what might happen in April:
If application volume picks up as expected and lenders start to reach their capacity to process applications then you will probably see mortgage rates stall or possibly move higher even with positive moves in the bond market.
Mortgage companies can only process so many applications at once so lowering mortgage rates when you’re at or above capacity only creates significant issues. Mortgage rates are really low right now; avoid the mistake many homeowners make of “waiting” just to see if you can get an extra 1/8 lower in rate.
If current mortgage rates/terms make sense and there is a financial benefit then the prudent decision is to move forward and avoid missing out on what is available.
Mortgage Rates - Conforming Loans
Mortgage Rates - FHA Loans
Mortgage Rates - Jumbo Loans
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.72, and FNMA 3.5 opened the day at 101.31. The 10y Treasury yield started the day at the 2.45% level. Yesterday was a wild ride for Treasury’s while the Mortgage Backed Securities market remained somewhat flat for most of the day.
After the 10y yield opened higher it was nothing but lower yields until late afternoon. The 10y yield moved from 2.47% all the way down to 2.37% and then reversed course to settle above 2.40%.
Mortgage Backed Securities were barely following along. For about an hour late in the day it looked like they finally may join the significant moves seen in the government bond market however that was quickly reversed once investors started selling Treasury’s after the 10y yield hit 2.37%.
Will we see the same sort of more today? Selling off at the open only to rally as the day develops? We’ll have to see however if that does happen and the bond market closes at even better levels than that will be a positive for mortgage rates moving forward. Always keep in mind; when a mortgage professional refers to “improving mortgage rates” they are referring to the cost to obtain mortgage rates.
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Economic Data – This Week:
Today 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.
Loan Officer Kevin O’Connor:
Kevin grew up in California and works with clients throughout the state. From the initial quote to the application to the final closing; Kevin works directly with each and every homeowner and encourages his clients to ask questions so that they’re better informed. He updates koloans.com on daily basis and you can connect with him on social media: Twitter Rates01