August 11th, 2017
Suggestions that can change during the day: Mortgage Bond prices are stalling at the 2017 highs, while mortgage rates are at the 2017 lows. Locking is recommended.
Rates Effective August 11th, 2017 12:30 PM 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 3.875% (3.961%APR)
15-Year Fixed Rate 3.250% (3.397% APR)
After close Commentary: MBS traded near the flat line for most of the session as traders were loathe to take on any new positions at such frothy levels. MBS are near the highs seen in November with mortgage rates at the 2017 lows. This morning's tame inflation data couldn't light a fire to fuel any kind of rally today. The 3.5% Fannie Mae 30-yr coupon closed near unchanged at at 103.28. The Dow gained 14.31 points to 21,858.32, the S&P 500 was up 3.11 points to 2,441.32, while the NASDAQ closed at 6,256.55, +39.68 points. WTI oil closed at $48.82/barrel, +$0.23. 10-yr T Note yield 2.18%. Next week's economic calendar is on the heavy side with reports on housing, manufacturing, and consumer spending. Have a great weekend!
Late morning Commentary: The Bureau of Labor Statistics reported on Friday that when stripping out volatile food and energy, the Core Consumer Price Index (CPI) was unchanged in July from June. The Core CPI continues to remain tame and has been moving lower since earlier in the year. The Core CPI rose by 1.7% year-over-year and is moving in the opposite direction of where the Fed wants to see inflation. While Core Personal Consumption Expenditures (PCE) is the Fed’s favorite inflation gauge, the Core CPI is a close second. The Fed’s inflation target is 2.0%, and both the Core PCE (1.5%) and the Core CPI are moving in the opposite direction of that number.
A recent poll of economists by Reuters reveals that the current U.S. economic expansion will continue for at least another two years, but the economy will not grow as much as the Trump administration predicted. Of the 54 surveyed, 34 of those said the expansion has two more years to go, with 21 of the 34 saying it would last at least two to three years and 13 said more than three years. The Trump administration predicted Gross Domestic Product would rise by 3% annually, but the latest poll sees growth of 2.1% to 2.5% each quarter to the end of 2018.
9:53 AM ET 3.5% Fannie Mae 30-yr coupon down 3 bp at a price of 103.19 down 16 bp when rates were set yesterday at 10:00 am et Open 103.22 High 103.44 Low 103.12
**Mortgage Bonds had their monthly coupon rollover after the close of trading last night, with the effect being being -19bp for the Fannie Mae 30-year 3.5% coupon. This has no effect on yields.
This is what I found: The Bond Coupon Rollover is an event that happens every month at which time the current month's coupon is closed out and any new loans are placed with next month's coupon.
For more info go to the followng link: http://activerain.com/blogsview/1595309/what-is-a-bond-coupon-rollover-
Dailey Moving averages we are currently above: 100 $102.82 200 $102.67 25 102.92 and below 50 102.97 Others numbers psychological numbers 103.00 , 103.19, 103.34
|Fri, Aug 11 8:40 AM Stock futures reverse into positive territory after this week's tame inflation data could keep interest rates on hold by the Fed.|
|Fri, Aug 11 8:38 AM The Core CPI year-over-year 1.7% from the 2.2% in February.|
|Fri, Aug 11 8:36 AM Year-over-year CPI 1.7%, down from the February high of 2.7% as inflation continues to edge lower.|
|Fri, Aug 11 8:35 AM July Consumer Price Index (CPI) 0.1% vs 0.2% expected. Core CPI 0.1% vs 0.2% expected.|
|Fri, Aug 11 8:33 AM MBS trade near unchanged while Treasury prices push higher.|
|Fri, Aug 11 8:11 AM WTI oil $48.37/barrel, -$0.20.|
|Fri, Aug 11 8:04 AM U.S. dollar index 93.38, +0.08.|
|Fri, Aug 11 8:02 AM The Consumer Price Index will be released at 8:30.|
|Fri, Aug 11 7:51 AM MBS look to open modesty higher.|
|Fri, Aug 11 7:51 AM 10-yr yield edges lower to 2.19%, lowest since late June.|
|Fri, Aug 11 7:50 AM Stock futures lower as the North Korean fears linger.|
|Fri, Aug 11 7:49 AM President Trump again warns North Korea on threats to the U.S. and allies.|
|Fri, Aug 11 7:47 AM Mortgage Bonds had their monthly coupon rollover after the close of trading last night, with the effect being being -19bp for the Fannie Mae 30-year 3.5% coupon|
Actual payments will vary based on your individual situation and current rates. The above rates are subject to change.
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.