After moving lower since last Wednesday; mortgage rates are moving higher today as bonds start the day in negative territory. It appears the sharp move down in mortgage rates is starting to stall and reverse course.
As we move into April we may see mortgage rates continue to move higher until the market settles in a comfortable range; similar to what followed after the move down in mortgage rates from November 2018 – January 2019.
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 opened the day at 102.80, and FNMA 3.5 opened the day at 101.30. The 10y Treasury yield started the day at the 2.42% level. Just a few days ago the 10y yield traded as low as 2.35%.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
What’s Next For Mortgage Backed Securities and Mortgage Rates:
It would not be surprising to see Mortgage Backed Securities continue to sell off after the significant rally that started last Wednesday. As a result mortgage rates may move higher as we move into April. Mortgage rates April 2019 will mostly start off the month just off the recent lows as we await the next round of economic data.
Next week we have the ISM, Durable Goods and Employment data. Confirmation that the economy is weakening will be important to maintaining or further extending this rally in Mortgage Backed Securities.
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Economic Data – This Week:
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).
Personal Income and Core PCE Reports:
Personal Incomes for February 2019 came in below expectations. The final reading came in at 0.2% and expectations were for 0.3% increase however the reading was still better than last months -0.1% reading.
Core PCE also came in below expectations. The final reading for Core PCE came in at 1.8% and expectations were for a 1.9% increase. The 1.8% increase was below last months revised reading of 2.0%.
After the reports came out the bond market improved slightly however it was still negative.
Economic Data – Next Week:
On Monday we have two very important reports; Retail Sales for February and the ISM Manufacturing PMI data for March. These have the potential to be market moving reports and it’s important to keep a close eye on how the market reacts.
On Tuesday we have the Durable Goods report and the ISM-New York Index for March. On Wednesday we have the weekly Mortgage Market Index, ADP Employment report and ISM Non-Manufacturing report. On Friday we have the BLS Employment report.
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.