August 17th, 2017
Rates Effective August 17th, 2017 12:30 PM EST
Conforming loans $424,100 and under
30-Year Fixed Rate 3.875% (3.961%APR)
15-Year Fixed Rate 3.250% (3.397% APR)
No origination on all posted rates. Call for other rates. **Rate Assumptions below the news.
Suggestions that can change during the day: Lower Stock prices are supporting Mortgage Bonds as they trade near unchanged levels. Carefully floating is recommended.
After close Commentary: MBS closed with modest gains in today's session as Stocks melted down due in part to the concerns surrounding Trump's pro-growth policies. The Fannie Mae 30-yr 3.5% coupon rose by 12bp to end at 103.34 rising above resistance one (R1-103.19) and closing at resistance two (R2-103.34). The Dow lost 274.14 points to 21,750.73, the S&P fell by 38.10 points to 2,430.01, while the NASDAQ finished lower by 123.19 points. WTI oil closed at $47.09/barrel, +$0.31. 10-yr T Note yield 2.18%. Economic data is limited to Consumer Sentiment tomorrow morning. Our hearts and prayers go out to the victims in today's deadly terrorist attack in Barcelona where 13 are dead and dozens injured.
Late morning Commentary: The minutes from the July Federal Open Market Committee meeting were released yesterday revealing a bit of dissension amongst the Fed members, while most are concerned about persistently low inflation levels. In addition, Fed members are not in alignment on when to hike rates, when to trim their $4.5 trillion balance sheet and the effects of low inflation.
The Fed's favorite inflation gauge, the Core PCE, fell to 1.5% annually in the July reading, below the 2% target range. Some members said inflation is likely to remain low and beneath the target range for longer than expected. Fed officials do remain in favor of making some sort of an announcement at the September meeting regarding when the balance sheet will begin to wind down. The Fed's balance sheet is made up of treasury and Mortgage backed securities.
Mortgage rates continued to edge lower this week due in part to low levels of inflation. Freddie Mac reported that the 30-year fixed mortgage rate fell to 3.89% from 3.90% with 0.4 in points and fees. Last year this time the rate was 3.43%. With mortgage rates holding steady, refinancing activity should remain high, particularly for cash out refinancings.
9:08 AM ET 3.5% Fannie Mae 30-yr coupon down 9 bp at a price of 103.12 up 12 bp when rates were set Yesterday at 10:00 am et Open 103.12 High 103.16 Low 103.12
Dailey Moving averages we are currently above: 100 $102.86 200 $102.63 25 103.02 and below 50 102.96 Others numbers psychological numbers 103.00 , 103.19, 103.34
|Thu, Aug 17 8:34 AM The New York Fed will be supportive later today when it will purchase up to $2.125B in Fannie/Freddie 30-yr 3.5% and 4% coupons beginning at 2:30 p.m. ET.|
|Thu, Aug 17 8:32 AM August Philly Fed 18.9 vs the 17 expected.|
|Thu, Aug 17 8:31 AM Weekly Initial Jobless Claims -12K to 232K, below the 240K expected.|
|Thu, Aug 17 8:30 AM The number of equity rich properties hits 14 million in Q2 2017, up 320,000 from the previous quarter.|
|Thu, Aug 17 8:19 AM WTI oil at $46.57/barrel -$0.22.|
|Thu, Aug 17 8:17 AM Weekly Initial Jobless Claims and the Philly Fed Index will be released at 8:30.|
|Thu, Aug 17 8:16 AM 10-yr T Note yield 2.23%, just above yesterday's close of 2.22%.|
|Thu, Aug 17 8:13 AM Lower shares of WalMart is also weighing on Stocks despite beating on the top and bottom line in quarterly earnings. In recent days analysts were thinking that the numbers would be better than what was reported.|
|Thu, Aug 17 8:13 AM MBS open flat to lower after yesterday's gains.|
|Thu, Aug 17 8:08 AM S&P futures modestly lower a day after the Fed minutes revealed that members are wary about weak inflation, which clouds the path of future rate hikes. The uncertainty is weighing on Stocks.|
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