Mortgage rates for May 14, 2019 are near their recent lows as the bond markets continue to digest news of the escalating trade war between the United States and China. In retaliation to the significant increase in tariffs implemented by the President; China has responded with a tariff increase on $60 billion worth of US goods.
As previously mentioned; any positive news from the trade negotiations will probably push mortgage rates higher and it’s important to keep an eye on any sudden developments.
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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 2.41%.
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Economic Data This Week:
Today 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.
Import and Export Prices:
This mornings economic data was a positive for mortgage rates. Import Prices for April were expected to increase 0.7% however the reading came in at 0.2%. Export Prices for April were expected to increase 0.5% however the final reading came in at 0.2%.
Overall it’s good news for mortgage rates as prices paid have an impact on inflation. If reports like Import and Export Prices continue to show low inflation pressure then that’s a long term positive for mortgage rates.
As mentioned above; at the end of the week we have the Philly Fed Index report and another inflation report (specifically the 1yr and 5yr Inflation Outlook report). These reports have the potential to move mortgage rates. If the numbers are higher than expectations then that could push mortgage rates higher as we head into the weekend.
If these reports are inline or below then it would most likely be confirmation for the bond market that current levels are justified.
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.