End Of September Mortgage Rates

End Of September Mortgage Rates:

As we move towards the end of September 2019 Conforming, FHA and Jumbo fixed mortgage rates remain at lower levels after last weeks Fed meeting. Those looking to refinance their current mortgage or purchase a new home are seeing mortgage rates significantly lower mortgage rates compared to 12 months ago.

Back in September 2018 – October 2018 mortgage rates moved significantly higher as it appeared the economy was improving faster than anticipated and inflation was picking up. Mortgage rates moved above 5.00% (30 year fixed mortgage rates) and both refinance and purchase loan applications came to a stand still. In fact some lenders were quoting 5.50% 30 year fixed mortgage rates!

That was the peak as mortgage rates started to improve and by 2019 mortgage rates moved dramatically lower.

Mortgage Rates - Conforming Loans

Mortgage Rates - FHA Loans


Mortgage Rates - Jumbo Loans

Mortgage Backed Securities & Treasury Snapshot:

September 23rd, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.41, and the FNMA 3.5 coupon started the day at 102.52. The 10y Treasury yield started the day at the 1.73% level.

After the opening the 10y yield moved lower after bond friendly news from the ECB and the Markit PMI report (more this below).

September 24th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.36, and the FNMA 3.5 coupon started the day at 102.48. The 10y Treasury yield started the day at the 1.70% level. Shortly after the open the 10y yield moved lower to 1.68%. Unless Mortgage Backed Securities rally mortgage rates in California (and around the country) will remain flat to start the day.

September 25th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.48, and the FNMA 3.5 coupon started the day at 102.50. The 10y Treasury yield started the day at the 1.64% level.

September 26th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.19, and the FNMA 3.5 coupon started the day at 102.31. The 10y Treasury yield started the day at the 1.71% level.

September 26th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.19, and the FNMA 3.5 coupon started the day at 102.31. The 10y Treasury yield started the day at the 1.71% level.

September 27th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.19, and the FNMA 3.5 coupon started the day at 102.47. The 10y Treasury yield started the day at the 1.68% level.

September 27th, 2019:

Mortgage Backed Security FNMA 3.0 started the day at 101.34, and the FNMA 3.5 coupon started the day at 102.45. The 10y Treasury yield started the day at the 1.68% 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 Monday we have the IHS Markit PMI data. On Tuesday we have the Monthly Home Price report, CaseShiller and the Consumer Confidence report (for September). On Wednesday we have the weekly Mortgage Market Index, and the New Home Sales report. On Thursday we have the final Q2 GDP reading, the weekly Jobless claims report and the Pending Home Sales report. To finish off the week we have the Core PCE report, Durable Goods, Personal Income Consumer Inflation Expectations and Consumer Sentiment for September.

IHS Markit PMI Report:

Expectations for the PMI report (Manufacturing) were for 50.3 and the report came in at 51.o. The August report came in at 50.3. As for the Service Sector; expectations were for 51.3 and the reading came in at 50.9 after last months reading of 50.7. The composite reading came in at 50.9 (expectations were for a reading of 51.3). Post report the bond market rallied and mortgage rates should start off the week at slightly better levels than last week.

Monthly Home Prices:

Last months reading was 4.8% year/year growth. This mornings report showed 5.00% year/year growth.

CaseShiller:

The year over year growth of the 20 largest markets was 2.00% after the 2.1% growth reported last month.

Consumer Confidence Report:

Market expectations are for a reading of 133.5 after last months reading of 135.1.

Mortgage Market Index:

There was a big drop in applications in the most recent MBA survey. The overall index came in at 512.2 (after last weeks reading of 569.5). The Purchase component came in at 261.4 after last weeks reading of 269.7. The refinance component came in at 1928.0 after last weeks 2274.1 reading.

New Home Sales:

The market is expecting an annual reading of 660,000 units after last months reading of 635,000 units. The final reading came in at 713,000 units (annual rate).

Q2 Final GDP:

The expectations for the reading was 2.00% and that is exactly what was reported.

Weekly Jobless Claims:

Last weeks report came in at 208,000 claims and this week it came in at 213,000 claims.

Core PCE:

The market was expecting a 1.8% increase and that is what the report delivered. Last month the important inflation report showed an increase of 1.6%. Post report Mortgage Backed Securities improved slightly.

Durable Goods:

Last month the Durable Goods report showed a 2.0% increase and the market was expecting a -1.0% decrease however the report came in at an increase of 0.2%.

Personal Income:

Personal Income came in at a 0.4% increase after last months 0.1% increase.

Consumer Inflation Expectations:

Consumer Inflation Expectations for 1y came in at 2.8% and for the 5y report it came in at 2.4%. Last month the 1yr report came in at 2.8% and the 5y report came in at 2.3%.

Consumer Sentiment:

The market was expecting a reading of 92.0 and the reading came in at 92.0

Impeachment and Mortgage rates:

With the announcement that the House of Representatives will begin an Impeachment inquiry the natural question to ask (for homeowners and homebuyers) is how will this impact mortgage rates. The simple answer is no one knows for sure. We’ll have to see how the process plays out. However what this process might do is delay a possible trade deal with China (although it was already looking like there would not be a trade deal any time soon).

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