Mortgage Rates Today:
Mortgage rates are higher today as Mortgage Backed Securities and Treasuries start off the day in negative territory. Current mortgage rates are being affected by the recent headlines that the government might avoid a second government shutdown in 2019. 30 Year fixed and 15 year fixed mortgage rates remain near their 2019 lows. This is for both Conforming and FHA loans. Mortgage companies are doing their best to keep rates low in 2019 so that they can increase application volume. So far though mortgage application volume has been down in 2019 even though mortgage rates are low.
February 2019 Mortgage Rates:
Overall it’s been a good month for mortgage rates. February 2019 mortgage rates are higher than February 2018 mortgage rates (only by a little) however current mortgage rates are lower compared to the last 8-10 months which is good news for the economy, homeowners, homebuyers and mortgage companies. Most people are applying for either a 30 year or a 15 year fixed rate mortgage rate loan program. However the 20 year fixed rate program remains very attractive. Due to the low volume of applications; the current processing time for mortgage companies is very short. You should be able to close quickly (especially if you’re buying a home).
Tomorrow is the CPI report. This is a very important report for mortgage rates and bonds. This is the number 1 inflation gauge used by the Fed, analyst and investors. If inflation is high; mortgage rates might move up. If inflation is low mortgage rates might move down. Back in September and October 2018 inflation was running hotter than expected. That was one of the main reasons why mortgage rates moved higher. During that time 30 year fixed mortgage rates moved above 5.00%. 15 year fixed mortgage rates moved above 4.375%. These were 7-8 year highs in mortgage rates. Because of this the housing market dramatically slowed and has still yet to recover. In 2019 inflation has not been an issue and hopefully that will be confirmed tomorrow. Mortgage companies and consumers would like to say mortgage rates remain stable. A move higher could further derail the housing market and cause buyers to withdraw from the market. It would also give pause to homeowners looking to refinance their property.