Mortgage Rates For May 15, 2019

Mortgage rates for May 15, 2019 are slightly improved as the 10y Treasury continues to rally. Keep in mind that the 10y Treasury does not set mortgage rates and sometimes the move in the Treasury market is much bigger than the move in consumer mortgage rates the Mortgage Backed Securities market (which is where mortgage rates originate from). And that’s what we’ve been seeing lately; big moves in Treasuries and only modest improvements in the Mortgage Backed Securities market.

Mortgage Backed Securities are under performing compared to the 10y Treasury and that is why you are not seeing dramatic moves with mortgage rates.

FHA Mortgage Rates

Jumbo Mortgage Rates

Mortgage Backed Securities and Treasury Snapshot:

Mortgage Backed Security FNMA 4.0 started the day at 102.89, and FNMA 3.5 was at 101.36. The 10y Treasury yield opened the day at 2.37%. The move down in the 10y Treasury yield has been impressive. Just a few weeks ago the 10 year yield was above 2.50% and now we’re approaching the mid 2.30% level. It would be good to see this rally level off so that the Mortgage Backed Security market can play catch up.

Modern Brown Home

Economic Data This Week:

Today 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.

Retail Sales:

The expectations for Retail Sales was an increase of .02% and the reading came in at -0.2%. This is a good report for Mortgage Backed Securities and mortgage rates. Negative economic news is a positive for mortgage rates. Over the years it’s been an interesting relationship between Retail Sales, Mortgage Backed Securities and consumer mortgage rates. At times the report will have a big impact on the direction of bond markets and mortgage rates and other times it has had a limited to no impact rates.

For the most part the Retail Sales report is a good barometer for the consumer and the economy. If the Retail Sales report over a three to six month period showed a weakening demand that would definitely cause concern for the economy. The consumer is the backbone of the US economy so most economist pay close attention to the report and look for short, medium and long term trends.

The Retail Sales report is not apart of the big three reports (BLS Employment, ISM and CPI) but it could be a considered a top four or five report (for MBS and consumer mortgage rates).

Mortgage Market Index:

The overall Mortgage Market Index came in at 415.7 and last weeks reading was 418.1. The Purchase Index came in at 268.5 (last weeks reading was 270.2) and the refinance index was 1232.6 (last weeks reading was 1238.5).

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.

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About Loan Officer Kevin O'Connor

About Loan Officer Kevin O'Connor

He is the founder and main contributor of He has over 15 years of experience as a Mortgage Loan Originator (MLO) and is a fully licensed with the state of California and the Nationwide Mortgage Licensing System (NMLS). He has a top rating with the Better Business Bureau and a top rating with Zillow. He continually delivers the results homeowners are looking for; low rates, fast closings and exceptional service: "Helping Homeowners Achieve Their Dreams"  CA DRE #01499872 and NMLS # 247447