Mortgage Rates For Monday February 11th, 2019

Today’s Mortgage Rates:

Looking up mortgage ratesThis morning mortgage rates are going to start the day a bit worse than last week. Both Mortgage Backed Securities and Treasuries are selling off. The 10y yield opened the day above 2.64% after moving to lower levels last week. It’s not surprising to see the selloff this morning as last week was a great week for mortgage rates. In fact; last week mortgage rates revisited their recent 2019 lows. If you are looking for current mortgage rate information and market updates be sure to visit koloans.com. From First Time Home Buyer information to Refinancing to money saving mortgage tips; they offer a wealth of information

Mortgage rate outlook for the day:

Unless market momentum changes later today it is unlikely mortgage rates will improve from morning levels. In fact there is a chance they may get worse if the 10y yield moves higher and causes a selloff in Mortgage Backed Securities.

Mortgage Rates This Week:

There are no major economic reports today or on Tuesday however on Wednesday we have a very significant report: the CPI Index. What is the CPI Index?

Here is the definition per BLS (source BLS):

The consumer price index (CPI) is a measure of the average change in the prices paid by urban consumers for a fixed market basket of goods and services. The CPI is based on prices of food, clothing, shelter, fuel, drugs, transportation fares, doctors and dentists fees, and other goods and services that people buy for day-to-day living. The quantity and quality of these items are kept essentially unchanged between major revisions so that only price changes will be measured. All taxes directly associated with the purchase and use of items are included in the index.”

Why this is important to mortgage rates:

CPI measures inflation and inflation is very important to bonds and mortgage rates. If inflation is high bond yields and mortgage rates generally move higher. If inflation is trending lower then bond market yields and mortgage rates generally move lower. In 2018 inflation was  moving higher and towards the end of the summer/early fall is moved up somewhat dramatically. Since then; inflation as has cooled and there is evidence that a trend down may be starting. Lower oil prices, lower business costs and lower employment wages help keep inflation low.

Conforming Loan Limits In California:

If you are buying a home or refinancing a home in California then you’ll want to review the current Conforming loan limits in California. Conforming loans generally have low mortgage rates and offer lots of opportunities to those purchasing a home or refinancing a mortgage. The counties in California that have higher home values have higher conforming loan limits. You can obtain both a fixed rate mortgage and an adjustable rate mortgage under the conforming loan program. The longest fixed rate term is 30 years and the longest fixed period for an adjustable rate mortgage is 10 years. The most popular term is the 30 year fixed and the second most popular term is the 15 year fixed rate.

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