Mortgage rates for May 09, 2019 are near their recent lows a day before the CPI report and a trade meeting between the United States and China.
Both could have a significant impact on mortgage rates and the industry will be watching them closely. The CPI report will be released 8:30 am EST however the trade negotiations with China may not impact the bond market and mortgage rates until next week.
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 102.75, and FNMA 3.5 was at 101.20. The 10y Treasury yield opened the day at the 2.44% level.
The 10y yield is below 2.47% for another day which is good new for mortgage rates. Yesterday was a volatile day as bonds started the day in rally mode only to sell-off as the day went on. In fact the 10y yield moved above 2.48% towards the end of the day.
As I mentioned yesterday; the Mortgage Backed Securities market has remained on the sideline during this recent rally in the Treasury market. Tomorrow’s CPI report could be the spark that is needed if (and that’s a big if) the CPI report comes in below expectations. A below expectations report means inflation is increasing at a lower rate then the market expects which is good for bonds and good for mortgage rates.
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Economic Data This Week:
Today we have the Weekly Unemployment Claims report, the Core Producer Prices report and a 30 year Bond Auction. On Friday we have the CPI report (important for mortgage rates).
Core Producer Prices:
Expectations were for a 2.5% increase (year/year) and the reading came in at 2.4%. The month/month came in at a 0.1% increase, expectations were for a 0.2% increase and this is below last months reading of 0.3%
Overall a good report for bond markets and mortgage rates heading into tomorrow’s CPI report.
Economic Data Next Week:
On Tuesday we have Import and Export Prices. On Wednesday we have the weekly Mortgage Market Index, NAHB Housing Index and the Retail Sales report. On Thursday we have Building Permits, Housing Starts and the Philly Fed Business Index. On Friday we have the 1yr and 5yr Inflation Outlook 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.