Mortgage rates for May 10, 2019 are near their recent lows as we head into the weekend. Some parts of this morning’s Consumer Price Index (CPI) report came in below expectations which is a positive for the Mortgage Backed Securities (MBS) market and mortgage rates. With the CPI report in the market is now focused on the trade negotiations with China.
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 102.63, and FNMA 3.5 was at 101.05. The 10y Treasury yield opened the day at the 2.44% level. Post CPI report the 10y yield moved lower to 2.43% and then eventually moved back to 2.44%.
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Economic Data This Week:
Today we have the CPI report.
Consumer Price Index (CPI):
Expectations were for a 2.1% increase and that is what the “headline” number came in at however however when
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.
Trade Negotiations With China and Mortgage Rates:
With new tariffs being implemented it appears that things are getting worse between the two countries. This is after this administration telling the public a deal was “imminent” or “weeks away”. And this is going back to early April and one of the reasons why mortgage rates reversed course in April and moved higher.
For now it appears the market thinks reaching a deal relatively soon is still possible. That the moves taken by the administration are a negotiating tactic.
That belief will only last so long. How long exactly? Impossible to say but if we go several more weeks without a deal and these increased tariffs remain in place I would guess that would start to be concerning for market participants.
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.