Mortgage Rates & News

August 7th, 2017

Suggestions that can change during the day: The new week begins with both Stocks and Bond prices near unchanged. Carefully floating is recommended.

Rates Effective August 7th, 2017 11:11 AM EST

No origination on all posted rates.  Call for other rates. **Rate Assumptions below the news

Conforming loans $424,100 and under

30-Year Fixed Rate 4.000% (3.961%APR)

15-Year Fixed Rate 3.250% (3.397% APR)

After close Commentary: Not much action in Mortgage Bonds today as they traded in a tight range for most of the session. The Bond closed at 103.22, +6bp and just above resistance one at 103.19. The Dow closed at a record high of 22,118.42, +25.61 points, while the S&P also closed at a record high of 2,480.91, +4.08 points while the NASDAQ was up 32.20 points to end the session at 6,383.77. WTI oil closed at $49.39, -$0.19. 10-yr yield 2.25%. There are no major economic reports due for release tomorrow

 

Late morning Commentary: Low down payments to purchase homes rose to a seven-year high in June due to the overall growth in purchase lending. Data and analytics firm Black Knight Financial Services reports that over the past 12 months, 1.5 million borrowers have purchased a home using down payments below 10%. The low down payment loans now account for nearly 40% of all purchase origination's.

Fannie Mae reports that housing sentiment dipped in July as high home prices weigh on buyers and economic conditions weigh on sellers. The Fannie Mae Home Purchase Sentiment Index fell 1.5 percentage points in July to 86.8, after matching its all-time high in June. A few key points to the report: The net share of Americans who say it is a good time to buy a home fell 7 percentage points to 23%; the net share of Americans who say that home prices will go up increased by 1 percentage point in July to 47%, following the upward trend from last month. In addition, the net share of Americans who say they are not concerned about losing their job rose by 9 percentage points to 75%, reversing the decrease from last month.

The Census Bureau recently reported that 95% of new households created in the U.S. in the last 10 years were comprised of families that are renting. There were 8.56 million households formed during that time with 8.13 million of those renters. A 2016 Pew Research survey showed that 72% of renters said they would like to purchase a home at some point. 

Mon, Aug 07 9:26 AM An existing home that was sold in the United States in June 2017 was on the market before sale for just 28 days on average.

8:57 AM ET  3.5% Fannie Mae 30-yr coupon down 3 bp at a price of 103.12  up 3 bp when rates were set Friday at 10:00 am et Open 103.09 High 103.12 Low 103.06

Dailey Moving averages we are currently above: 100  $102.76 200  $102.71    25 102.74  and below 50 102.97   Others numbers to watch this is a psychological number because all of the Zeros 103.00

Mon, Aug 07 8:30 AM USD LIBOR 1-month 1.22%, 3-month rate 1.31%, 6-month 1.44%, 12-month 1.72%.
Mon, Aug 07 8:28 AM The New York Fed will purchase up to $1.65B 30-yr Fannie/Freddie 3.5% and 4% coupons beginning at 2:00 p.m. ET this afternoon.
Mon, Aug 07 8:27 AM This week, the Treasury will sell $24B 3-yr Notes on Tuesday, $23B 10-yr Notes on Wednesday and $15B 30-yr Bonds on Thursday.
Mon, Aug 07 8:25 AM The economic calendar is on the light side this week but it will feature inflation data from the Consumer and Producer Price Index.
Mon, Aug 07 8:15 AM U.S. dollar index 93.30. -0.11.
Mon, Aug 07 8:14 AM The 10-yr T Note yield 2.27%, near unchanged.
Mon, Aug 07 8:11 AM MBS open flat to lower after the strong July Jobs report pushed prices lower on Friday but were able to cut a big chunk of the losses by day's end.
Market Update

     

    **Rate Assumptions

     

    Actual payments will vary based on your individual situation and current rates. The above rates are subject to change.

    • Some products may not be available in all states.
    • Jumbo Rates (loans over $424,100) not be available to first time home buyers.
    • Lending services may not be available in all areas.
    • Some restrictions may apply.
    • Based on the purchase/refinance of a primary residence with no cash out at closing.
    • We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 780; and an escrow account for the payment of taxes and insurance.
    • The lock period for your rate is 30 days.
    • The loan to value (LTV) ratio is 70%. If LTV > 80%, PMI will be added to your monthly mortgage payment for all conventional loans.
    • Rates assume a credit score of at least 780.
    • Please remember that we don’t have all your information. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. National Bank of Commerce offers a wide variety of loan options. You may still qualify for a loan even if your situation doesn’t match our assumptions. To get more accurate and personalized results, please call (205) 266-5669 to talk to John Marbury.
    • 30-Year Fixed-Rate Mortgage: The monthly payment on a $200,000 30-year Fixed-Rate Loan at 4.000% and 70% loan-to-value (LTV) is $954.83 with 0 points due at closing. The Annual Percentage Rate (APR) is 4.087%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply.
    • 15-Year Fixed-Rate Mortgage: The monthly payment on a $200,000 15-year Fixed-Rate Loan at 3.250% and 70% loan-to-value (LTV) is $1405.34 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.397%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply

    Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. Forgive my spelling and grammatical mistakes due to writing skills that are lacking and the need to communicate quickly.  

    Contact

    John Marbury
    jmarbury@nationalbankofcommerce.com
    Mortgage Lender NMLS# 514390
    NMLS# 740833
    Phone:205-266-5669
    Fax: 866-217-4174

    813 Shades Creek Parkway
    Birmingham, Alabama 35209
     

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