Mortgage rates for January 23, 2019 will start the day at similar levels to yesterday as both Mortgage Backed Securities and Treasuries start the day slightly negative. Mortgage Backed Securities rallied yesterday however it was limited compared to the move in Treasuries.
This morning the 10y yield opened the day at the 2.77% level after hitting 2.73% yesterday. Fannie Mae 4.0 coupon was at 101.63 to start the day Unless something significant happens the case can be made that Mortgage Backed Securities, mortgage rates and Treasuries will be flat for the most part until next weeks Fed meeting.
Yesterday we had the Existing Home Sales for December reading which came in well below expectations. This is further evidence that there is a slowdown occurring in housing and it appears that might continue into February.
Today we had the MBA Purchase Index, the MBA Refinance Index, Monthly Home Prices Index and the MBA 30 year mortgage rate index (see below). There are no significant economic reports on Thursday and on Friday we have the Durable Goods report. Next week we have the Case Shiller Index and Consumer Confidence on Tuesday. On Wednesday we the ADP National Employment report and the Fed Decision. On Thursday we have the Core PCE report and Chicago PMI. On Friday we have the BLS Employment report and ISM Manufacturing PMI.
FHA Mortgage Rates
Mortgage Applications, Home Prices And Mortgage Rate Index:
Earlier this morning we had some interesting data come out. Mortgage applications dropped after surging the previous week. While mortgage rates bumped up last week it certainly was not significant so seeing another pull back in mortgage applications for both purchases and refinance is a bit surprising. The Mortgage Rate Index moved from 4.74% to 4.75%; however at JB Mortgage Capital, Inc. we are well below the national average.
First Time Home Buyer In California:
Are you thinking of buying a home in 2019? Will this be your first purchase? Being a First time home buyer in California you’ll have lots of options in terms of choosing the right Realtor to work with and the right Loan Officer. Here are some suggestions before you get started:
- Work with an experienced Realtor: Only work with a well respected and knowledgeable Realtor who has years of experience specifically working with First Time Home Buyers.
- Be realistic and only buy what you can comfortably afford: This is your first home; be cautious and don’t buy a home that is going to be difficult to afford. There are a lot of expenses with owning a home and until you own one you may underestimate the cost of home ownership.
- Mortgage quotes from reputable mortgage companies: There are thousands of mortgage companies in California and you need to be selective in who you work with. We highly suggest you only obtain quotes from companies and Loan Officers with a verifiable track records. The Better Business Business Bureau is a great place to start and avoid companies with a B or less rating. Also check the Loan Officer’s work history on NMLS and see if he/she has at least 5 years experience. And if they’ve moved from one company to the next every few years that might be a red flag as well.
- Ask questions: Don’t hesitate to ask questions; and ask lots of them. It’s a good way to find out if the Realtor and/or Loan Officer you’re working with is a good fit for your needs. If they take the time to patiently answer all your questions that a great sign your working with someone who cares.
Refinancing Your Mortgage In California:
- Know your situation before you ask for quotes: Have a good understanding of where your credit score might be (a range is fine; ie 700 -720), and know your annual income.
- Be realistic: If you have a low credit score and/or a high loan to value ratio you’re not going to get the absolute best rate/terms. Mortgage rates and terms are based on credit, income and the value of your home.
- Gather your documentation: Having your basic documentation ready to send in can really help speed things along and actually make things a bit easier for the borrower. If you receive a W2; have at least your most recent W2 ready (most recent two if possible) and your most recent two paystubs. If you’re self employed or receive self employment income have two years of your tax returns. And if you have rental property be prepared to provide two years of tax returns.
Currently We Are Seeing:
30 year fixed mortgage rates below 4.375%, 20 year fixed mortgage rates below 4.25% and 15 year fixed rates below 3.625%. 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 get 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.
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates, personal one-on-one service and we have an A+ rating with the Better Business Bureau (BBB). We also have the 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 Loan Officer. You can contact him directly at 1-800-550-5538.