Today’s Mortgage Rates:
Mortgage rates for May 23, 2019 are stable and near recent lows as the trade war with China intensifies. We’re nearing a three day holiday weekend and we usually see the mortgage industry take a cautious approach when it comes to mortgage rates.
Looking at next week there are several important economic reports coming out including the Preliminary Q1 GDP report and Core PCE Inflation.
Mortgage Rates - Conforming Loans
Mortgage Rates - FHA Loans
Mortgage Rates - Jumbo Loans
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 102.83. The 10y Treasury yield opened the day at 2.36%.
On Friday the bond market closes early and is closed on Monday.
Why Are Mortgage Rates Not Lower?:
That is a common question lately as the 10y yield continues to move lower. The first thing to remember is that the 10y yield does not set mortgage rates. Mortgage rates originate from the Mortgage Backed Securities market.
As the 10y Treasury has rallied and the yield has moved lower the Mortgage Backed Securities market has been reluctant to follow. This is evident when you look at where the 10y yield and FNMA 4.0 were late March and where they are today.
Back in March the 10y yield was around the 2.36% level and FNMA 4.0 was above 103.00. As previously stated; today’s open for the 10y yield was 2.36% however FNMA 4.0 was just above 102.83.
MBS will sometimes lag the 10y Treasury however if current levels hold or improve you’ll most likely see FNMA and other coupons play catch up. On the flip side; if Treasury yields move higher from these levels the initial damage to MBS coupons might be minimal since they are currently lagging the Treasury market.
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Economic Data This Week:
Today we have the weekly Jobless Claims and New Home Sales. On Friday we have the Durable Goods report and the markets close early for Memorial Day.
Weekly Jobless Claims:
Expectations were for a reading of 215,000 and the final reading came in at 211,000. Continued claims rose higher than expected. The reading came in at 1.676 million and expectations were for a reading of 1.670 million. This is also higher than last weeks reading of 1.660 million continued claims.
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 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 koloans.com on daily basis and you can connect with him on social media: Twitter Rates01