Mortgage Rate Update For March 2019:
Conforming and FHA mortgage rates are at their lows for 2019. In addition to that they are at a level not seen in over 12 months as both the Mortgage Backed Securities Market and Treasury bond market continue to rally. As we move further into the month many industry proffessionals believe mortgage rates will remain at these levels or possibly improve a bit from these levels. How mortgage rates finish out the last few weeks of March depends a lot on the Fed has to say Wednesday afternoon. Current mortgage rates are priced agressively heading into the Fed meeting however you might see some lenders take a cautious approach just before the the Fed announcement (2:00pm EST.)
Mortgage Rates Are At Their Lows:
30 year fixed mortgage rates and 15 year fixed mortgage rates remain the most attractive terms right now (Conforming). For the better part of nearly two years the 30 year fixed conforming rate has been above 4.00%; will that change before the end of the month or even in 2019? Difficult at best to say however we may have a better idea late Wednesday once we hear from the Fed. Mortgage Backed Securities are still below their best levels of the last 12-18 months however if they can move above that ceiling post-Fed meeting we may start to see 30 year fixed mortgage rates below 4.00%. Keep in mind this could all get reversed if news that a trade deal with China has been formalized or any other positive economic news.
Fed Decision on Wednesday:
Here is what most investors and analyst are watching for with respect to the Fed announcement on Wednesday:
- How they view the current economy
- Future expectations for the economy
- Their balance sheet reduction program
- The dot-plots...will they change?
While the Fed does not set mortgage rates they do have an influence over the direction in which the Mortgage Backed Securities Market moves and thus which way mortgage rates move. Anyone who tells you "the Fed sets mortgage rates" ask them to explain why mortgage rates went down after "the Fed raised rates" in December 2018.
The most likely outcome of the meeting is that mortgage rates generally stay in the same range they entered the meeting. It would be very surprising to see the Fed announce something that would push bond yields/mortgage rates significantly in one direction.
JB Mortgage Capital, Inc.:
At JB Mortgage Capital, Inc. we offer industry low California mortgage rates, personal one-on-one service and fast closings. We have an "A+" rating with the Better Business Bureau and we are "AAA" rated with the Business Consumers Alliance. Loan Officer Kevin O'Connor has over 14 years of experience and has a five star rating on Zillow.com and Mortgage101.com.