August 29th, 2017
Rates Effective August 29th, 2017 10:30 AM EST
*30-Year Fixed Rate 3.750% (3.835%APR)
**15-Year Fixed Rate 3.125% (3.271% APR)
Conforming loans $424,100 and under
No origination on all posted rates. Call for other rates. ***Rate Assumptions below the news
Suggestions that can change during the day: Coming Soon
After close Commentary: MBS ended with modest gains and off their highs as Stocks seemed to shrug off the North Korean tensions and ended higher by the close of trading. The strong Consumer Confidence Index that hit a 16-yr high could have had a hand in the turnaround in equities. The Fannie Mae 30-yr 3.5% coupon closed at 103.56, +9bp. The Dow gained 56.97 points to 21,865.37 after a 135 point decline soon after the opening bell. The S&P 500 gained a modest 2.06 points to 2,446.30, while the NASDAQ ended with a 18,87 point gain to end the session at 6,301.88. WTI oil closed at $46.44/barrel, near unchanged. 10-yr yield 2.13%. The ADP Private Payrolls will be released tomorrow morning along with the second read on Q2 2017 GDP.
Late morning Commentary: Home price gains continued to be strong in June due to the ongoing theme: a tight housing market fueled by low inventories. The S&P CoreLogic Case-Shiller 20-city Index rose 5.7% from June 2016, while month-over-month saw a 0.7% increase from May to June. “Both the number of homes for sale and the number of days a house is on the market have declined for four to five years,” spokesperson David Blitzer said. “Currently the months-supply of existing homes for sale is low, at 4.2 months.” A healthy inventory level is six months.
Renewed tensions in North Korea have sent Mortgage Bond prices to fresh 2017 highs and to the low yields last seen near Election Day 2016. Late yesterday, North Korea launched a missile over Japan, violating Japanese air space and raising uncertainty in the region once again. In response, President Trump says "all options on the table" for North Korea. The headlines are weighing on the U.S. Stock markets, though the Dow Jones Industrial Average, S&P 500 and the NASDAQ are off their worst levels.
The Conference Board reported on Tuesday that its Consumer Confidence Index rose to the highest levels in August to levels not seen in 16 years. The Consumer Confidence Index rose to 122.9, the highest since the 151.3 registered back in July 2001. Americans who view current conditions that as "good" increased, while those who believe current conditions are "bad" declined. Americans stating jobs are “plentiful” rose from 33.2% to 35.4%, while those claiming jobs are “hard to get” decreased from 18.7% to 17.3%.
9:19 AM ET 3.5% Fannie Mae 30-yr coupon up 22 bp at a price of 103.66 up 22 bp when rates were set yesterday at 10:00 am et Open 103.38 High 103.47 Low 103.34
Dailey Moving averages we are currently above: 200 $102.58 100 $102.92 50 102.98 and 25 103.14 Others psychological numbers New First level of Support 103.47, New Second Level of support $103.34
First level of resistance $103.69 low of 11/10/16 Second level of resistance $103.90 half of the trading range of 11/10/16
|Tue, Aug 29 9:07 AM The June S&P Case-Shiller 20-city Index 5.7% from June 2016, in line with estimates and matched the May reading, but takes a backseat to the North Korean headlines.|
|Tue, Aug 29 8:45 AM MBS at the highs seen right after the presidential election in November.|
|Tue, Aug 29 8:40 AM President Trump says "all options on the table" for North Korea.|
|Tue, Aug 29 8:27 AM Data out this morning Consumer Confidence and S&P Case-Shiller 20-city Index.|
|Tue, Aug 29 8:26 AM The Treasury will sell $28B 7-yr Notes today, results at 1:00 p.m. ET and comes after solid performances by yesterday's 2- and 5-year offerings.|
|Tue, Aug 29 8:18 AM U.S. dollar index 91.70, -0.44.|
|Tue, Aug 29 8:18 AM WTI oil at $46.57/barrel, unchanged.|
|Tue, Aug 29 8:13 AM The yield on the 10-yr T Note declines to 2.11%, lowest since the day after the November presidential election.|
|Tue, Aug 29 8:12 AM Stock futures lower on the news.|
|Tue, Aug 29 8:12 AM Harvey gathers strength and will likely make landfall once again bringing more torrential rain to the ground soaked Houston area.|
|Tue, Aug 29 8:09 AM MBS open higher with Treasury yields lower after reports that North Korea's mid-range missile violated Japanese air space landing in the Pacific Ocean.|
Actual payments will vary based on your individual situation and current rates. The above rates are subject to change.
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