Mortgage rates for May 29, 2019 are starting off the day at similar levels to yesterday as the bond market continues to rally this week. The 10y Treasury continues to rally pushing the yield to multi-year lows. However the gains in the Mortgage Backed Securities market have been minimal. It’s been a big move down in May and mortgage lenders are looking for bond market stability before passing along significant improvements to mortgage rates.
FHA Mortgage Rates
Jumbo Mortgage Rates
Mortgage Backed Securities and Treasury Snapshot:
Mortgage Backed Security FNMA 3.5 started the day at 101.59 and the FNMA 4.0 coupon started the day at 102.97. The 10y Treasury yield opened the day at 2.22%. A month ago the 10y yield was above the 2.50% level so this latest move down has been significant.
Economic Data This Week:
Today we have the Mortgage Market Index and on Thursday we have the weekly Jobless Claims report and the preliminary Q1 GDP report. On Friday we have the PCE and the Core PCE report along with the Chicago PMI report and Consumer Inflation Expectations.
Mortgage Market Index:
The Mortgage Market Index came in at 411.5 which is lower than last week’s reading of 425.6. The MBA Purchase Index came in at 259.4; last week the reading came in at 263.00. The Mortgage Refinance Index came in at 1255.4 which is lower than the 1334.9 reading from last week.
Mortgage loan application volume still remains low despite mortgage rates being near multi year lows.
Home Buying Tips:
It’s Spring and many buyers are out looking for a home. Some are First Time Home Buyers (#FTHB), some are looking for an upgrade to their current home and others are seasoned investors looking to purchase another rental unit. Whatever your situation is here are some good home buying tips you can use to make your process a bit smoother.
- Make a plan of action – before you start shopping around write out what you are trying to accomplish
- Gather your docs – get ahead of the process and be ready with your income documentation
- Get pre-approved with a reputable company
- Schedule the home inspection within three days of an accepted offer
- Schedule the appraisal inspection within five days
The most important step is the plan of action. Too many people just start shopping around and they really don’t have an idea of what they are looking for, they’re not pre-approved and ultimately end up not buying a home.
Some of the best advice out there is this; make sure the team around you is knowledgeable and experienced. That means your Realtor and your Loan Officer should have great reputations that you can independently verify and years of experience. Don’t use a Realtor that has no experience in the neighborhood you are looking into and avoid using a Loan Officer who is new to the business. Ideally you’ll want to locate a Loan Officer that has at least five years of mortgage lending experience.
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.