Mortgage Rates March 2019:
It's March 1st, 2019 and mortgage rates are higher to start the month. After a somewhat stable February we're starting to see some significant selling in the bond market three weeks before the Spring season. Most lenders are being cautious entering the weekend in case the market moves higher early next week. Speaking of next week; we have the very important BLS Employment report on Friday.
The Resent Mortgage Rate Range:
Overall March 2019 mortgage rates are starting off still in the range that was started back in January however the market is at risk of mortgage rates moving above the range if the selling in the bond market continues. 30 year fixed mortgage rates have remained below 4.375%, and 15 year fixed mortgage rates have remained below 3.75% (Conforming loan amounts, excellent credit, primary residence and no cash out).
Why Are Mortgag Rates Moving Higher:
It all started on Wednesday; the stronger than expected GDP report sparked a wave of selling that has continued into Friday. This mornings economic data (Core PCE, ISM and Consumer Sentiment) was all bond/mortgage rate friendly however it wasn't enough to push bond yields and mortgage rates back down. Heading into the weekend it looks like the 10y yield will close above 2.72%; a key technical line for the government bond. Fannie Mae 4.0 coupon will finish out the week below it's key technical level as well (102.00).
The Employment Report:
This is going to be a very important employment report for bonds and mortgage rates. The last two have been blockbuster type reports and there is a chance that may happen again. Last months report showed a gain of over 300,000 jobs and the expectations for next weeks report is just over 180,000. Another component to keep an eye on is the average earnings for the month as well. Higher earnings sometimes can lead to higher inflation which is bad for mortgage rates and bad for bond markets. Also next week is the weekly Unemployment Claims report and Mortgage Market index data.
Proceed With Caution:
While the recent move up might be temporary you deffinetly should proceed with caution when it comes to locking in an interest rates. If this selling continues into next week we could very well see 30 year fixed raes above 4.50% and 15 year fixed rates above 3.875%. Furthermore interest rates tend to move up much faster than they move down so if you are closing in the next 2-4 weeks it might be a prudent decision to go ahead and lock in your terms and not risk seeing a big jump in mortgage rates next week.
JB Mortgage Capital, Inc:
We offer low mortgage rates, personal one-on-one service and fast closings If you are looking to refinance your current mortgage or purchase a home please be sure to contact us directly for a no-cost/no-obligation quote: 1-800-550-5538. Loan Officer Kevin O'Connor has over 14 years of experience as a Loan Officer and is the content creator of www.koloans.com.