Mortgage Rates. North Korea & 10 Yr Treasury

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.

***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 3.750% and 70% loan-to-value (LTV) is $926.23 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.835%. 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 3.125% and 70% loan-to-value (LTV) is $1393.22 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.271%. 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
NMLS# 740833
Phone:205-266-5669
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209
 

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As a loan officer (mortgage broker 1989-2006) since 1985, I have seen a lot of changes over the years. The only consistency in the mortgage business and life is change. This is the reason that we believe it is necessary to move quickly and to be early. Let us know if you have any questions or if we can help in any way.

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