Mortgage Rates For May 20, 2019

Today’s Mortgage Rates:

Mortgage rates for May 20, 2019 are starting off the week at great levels. Generally speaking; mortgage rates are near their 2019 lows due to a recent rally in bonds that started after news came out that the trade talks between China and the United States were at impasse. For most of April the President and his current Administration were communicating a much different story; one in which a trade deal was near.

Mortgage Rates - Conforming Loans

Mortgage Rates - FHA Loans

Mortgage Rates - Jumbo Loans

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Mortgage Backed Securities and Treasury Snapshot:

Mortgage Backed Security FNMA 3.5 started the day at 101.27 and the FNMA 4.0 coupon started the day at 102.81. The 10y Treasury yield opened the day at 2.38%.

As previously mentioned last week; Mortgage Backed Securities have been lagging the recent rally seen in the 10y Treasury market. That can be good or bad news and we won’t know which one it is until they finally decide to make a significant move.

It could be good in that if 10y yield rises and investors in Mortgage Backed Securities believe the MBS market is fairly priced then we probably won’t see a significant selloff in MBS. Without a significant selloff in MBS, mortgage rates would probably remain somewhat stable.

However it could be bad in that if the 10y yield rises and Mortgage Backed Securities do sell off significantly then it may signify investors believe MBS are over priced and thus run the risk of selling off even more. This would push mortgage rates higher.

A stable Treasury market would most likely lead to improved mortgage rates.

Lastly; what if the 10y Treasury yield moves even lower?

If that happens you might end up seeing a significant rally in the Mortgage Backed Securities market which ultimately means mortgage rates would move lower.

Lot’s of “ifs” which is why predicting mortgage rates is difficult. The best thing to do is understand what might move mortgage rates and be somewhat prepared for each outcome.

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Economic Data This Week:

There are no major economic reports today.

On Tuesday we have Existing Home Sales. On Wednesday we have the weekly Mortgage Market Index and on Thursday we have the weekly Unemployment Claims and New Home Sales. On Friday we have the Durable Goods report and the markets close early for Memorial Day.

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.

Loan Officer Kevin OConnor

Loan Officer Kevin O’Connor:

Kevin grew up in California and works with clients throughout the state. From the initial quote to the application to the final closing; Kevin works directly with each and every homeowner and encourages his clients to ask questions so that they’re better informed. He updates on daily basis and you can connect with him on social media: Twitter Rates01