Mortgage rates for May 22, 2019 are starting off the day at similar levels to yesterday as the bond market hits the pause button on the selling that’s taken place over the last two days.
Concerns over the trade war with China (which is one reason why bond markets and mortgage rates have improved this month) has eased somewhat however the longer it goes on the more damage it will do to the economy.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 101.16 and the FNMA 4.0 coupon started the day at 102.75. The 10y Treasury yield opened the day at 2.41%.
We haven’t discussed this in a while however a range might be starting to form for both mortgage rates and bond markets. It was a common theme from January to March and current market action might be indicating that the market is establishing the bottom end of a range it may stay in for months.
The high end of the range for the 10y yield is the 2.60% – 2.62% level and the bottom might be the 2.34% – 2.36% level (which it has hit twice).
We’ll have to wait and see what happens before making a final determination but if bond yields continue to move higher from current levels I think more and more investors and analyst will come out saying that the bond market in range bound. And if that happens there is a good chance that range could last for 2-3 months or more.
Economic Data This Week:
Today 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.
Mortgage Market Index:
The overall Mortgage Market index increased from last week’s reading of 415.7. The reading this week came in at 425.6 and the increase might be due to the improvements we’ve seen in mortgage rates. The Refinance Index increased from 1232.6 to 1334.9 and the Purchase Index decreased from 268.5 to 263.00.
For the most part it’s been a moderately slow year for mortgage lenders. Outside of a big surge for a few weeks in April it’s been relatively calm for underwriting departments.
What is interesting was how that surge in April really impacted underwriting times for all lenders. Some lenders who traditionally underwrite a file in 2-3 days had significant increases in underwriting time frames. That means if we have a sustained push lower in mortgage rates the industry could be overwhelmed with mortgage applications. So if you are thinking of holding out on locking in your interest rate you might want to think twice about that decision especially if it’s a purchase transaction.
When mortgage lenders get overwhelmed with loan submissions they tend to push mortgage rates higher in an attempt to slow down the number of loan application submissions.
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.