Mortgage rates for May 07, 2019 are near their recent lows as the Mortgage Backed Securities market starts the day in positive territory. Heading into yesterday there was news that the President was going to implement a new round of tariffs on China.
The bond market initially rallied on the news (stocks sold-off sharply in early trading) but it was clear from the start that the seemingly bond friendly news was of little importance to traders.
Fixed rate mortgages remain the most attractive right now; specifically Conforming, FHA and Jumbo fixed rates.
California Mortgage Rates (Conventional)
California FHA Mortgage Rates
California Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 4.0 started the day at 102.77, and FNMA 3.5 was at 101.17. The 10y Treasury yield opened the day at the 2.47% level.
Keeping an eye on important levels:
An important level for the 10y yield is 2.46%/2.47% and it’s no surprise we are seeing the market have difficulty moving below this. Mortgage Backed Securities investors will probably limit their buying of mortgage bonds until we see a sizable move lower in the 10y yield. Until that happens (and it may not) we’ll most likely see mortgage rates remain near current levels.
Looking at the higher side of yields; the 2.55% level is another important level for the 10y yield. If there was a significant move about that we might end up seeing a sharp sell-off in the Mortgage Backed Securities market and mortgage rates would move higher.
For now though it seems as if a range in the 10y yield is forming between 2.47% – 2.55%. If you remember back to Jan-Mar; we had a much wider range before bond yields and mortgage rates moved significantly lower.
It’s important to remember that a range can be broken at any time and that a sell-off in bonds (which means mortgage rates move higher) can be rapid and significant. What happened at the end of March (where mortgage rates tanked) rarely happens however sharp moves higher happen frequently.
The biggest risk to a move higher is a trade deal with China. Although some believe that the sell-off that may happen after a trade deal is agreed to will not be as significant as it would have been back in December to March. Also the market my want to see the details before any significant move and that will take time.
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Economic Data This Week:
No major economic reports are being released today. On Wednesday we have the weekly Mortgage Market Index and a 10 year Note Auction. On Thursday we have the Core Producer Prices report and a 30 year Bond Auction. On Friday we have the CPI report (important for 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.