First Week of September

Mortgage Rates-First Week of September:

As we move closer to fall 2019 mortgage rates remain near multi-year lows. Conforming, FHA and Jumbo fixed mortgage rates remain very attractive for both homebuyers and homeowners who are looking to refinance their current mortgage. At JB Mortgage Capital, Inc. we offer industry low mortgage rates, quick processing times and the best possible service. That’s why we have an A+ rating with the Better Business Bureau and a AAA rating with the Business Consumers Alliance.

Mortgage Rates - Conforming Loans

Mortgage Rates - FHA Loans


Mortgage Rates - Jumbo Loans

Mortgage Backed Securities & Treasury Snapshot:

September 3rd, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.98, FNMA 3.5 started the day at 102.80 and the FNMA 4.0 coupon started the day at 103.80. The 10y Treasury yield started the day at the 1.48% level.

September 4th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 102.06, FNMA 3.5 started the day at 102.81 and the FNMA 4.0 coupon started the day at 103.81. The 10y Treasury yield started the day at the 1.48% level.

Mortgage rates will benefit from a stable bond market however that may not be the case on Friday. The Employment report comes out Friday and it could significantly impact bond markets and possibly mortgage rates.

September 5th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 102.13, FNMA 3.5 started the day at 102.80 and the FNMA 4.0 coupon started the day at 103.78. The 10y Treasury yield started the day at the 1.50% level.

The bond market sold off over night as news of a possible meeting between US and China trade representatives in October and the selling intensified after the ISM Non-Manufacturing report came out (more on this below).

September 6th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.80, and the FNMA 3.5 started the day at 102.58. The 10y Treasury yield started the day at the 1.60% level.

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Important Economic Data This Week:

Here we cover the daily economic events that might impact mortgage rates. After the report comes out we’ll update the post with that information and comment on if there is a potential impact on mortgage rates.

On Tuesday we have the ISM Manufacturing PMI, Construction Spending and ISM Manufacturing Prices Paid for August. On Wednesday we have the weekly Mortgage Market Index and the ISM-New York Index. On Thursday we have the ADP Employment Report, ISM Non-Manufacturing report and the weekly Unemployment Claims report. On Friday we have the Employment report.

ISM Manufacturing PMI:

Market expectations were for a reading of 51.2 (which was last months reading). The reading came in well below market expectations at 49.1 (the lowest reading in years). Post report the bond market rallied pushing the 10y yield to 1.45%.

Mortgage Backed Securities also improved however not by much. If the 10y yield holds at this level Mortgage Backed Securities should improve more over the next 24-72 hours (not a guarantee though).

Construction Spending:

The reading came in at a 0.1% increase and the market was expecting a 0.3% increase after last months 1.3% decline. Construction spending remains weak.

ISM Manufacturing Prices Paid:

Market expectations were for a 45.8 reading and the report came in stronger than that. The 46.0 reading was not only higher than market expectations but higher than last months reading as well.

Mortgage Market Index:

The latest Mortgage Market Index shows a decline in both Refinance and Purchase applications. Despite multi-year low mortgage rates in California and across the country lenders are seeing loan volume shrink. However it is the end of summer; and as we move into September there is a decent chance that loan volume increases.

The Mortgage Market Index came in at 558.5 after last weeks reading of 575.2. The Refinance component came in at 2367.2. Last week it came in at 2545.6. The Purchase component came in at 242.6 which is lower than last weeks reading of 234.1.

There was no bond market reaction to the report.

ISM-New York Index:

Last months reading came in at 878.8 and the reading came in at 879.0. There was no impact to mortgage rates from the report.

ADP Employment:

Expectations were for a reading of 149,000 jobs created and the actual number came in at 195,000 jobs created. Post report the 10y yield moved from 1.50% to 1.52%.

Unemployment Claims:

Expectations were for 215,000 claims and the report came in at 217,000 claims.

ISM Non-Manufacturing PMI:

The market is expecting a reading of 54.0 after last months reading of 53.7. Post report bonds sold off significantly and pushed mortgage rates higher.

Employment Report:

Expectations were for 158,000 jobs created and the report showed 130,000 jobs created which is below last months reading of 164,000 jobs created. Overall job growth is lower than it has been in previous years. Average earnings showed an increase of 0.4% (expectations were for a 0.3% increase) and the unemployment rate remained unchanged at 3.70%.

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).

A+ Rating With The BBB

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.

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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 koloans.com on daily basis and you can connect with him on social media: Twitter Rates01