August 31st, 2017
Rates Effective August 31st, 2017 11:30 AM EST
*30-Year Fixed Rate 3.875% (3.961%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: Ahead of tomorrow's big headline risk in the August Jobs Report and with rates extremely attractive, locking is advised.
After close Commentary: Coming Soon
12:49 AM ET 3.5% Fannie Mae 30-yr coupon up 3 bp at a price of 103.56 down 3 bp when rates were set yesterday at 10:00 am et Open 103.50 High 103.56 Low 103.50
Dailey Moving averages we are currently above: 200 $102.57 100 $102.96 50 103.02 and 25 103.25 Others numbers 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. The Presidential election was 11/08/16. On that day the MBS closed at $104.91
See 11/08/17 rate sheet by clicking on the link below. We are not that far away from those rates;
Late morning Commentary: Inflation remained tame in July as evidenced by the Federal Reserve's favorite inflation gauge, the Core Personal Consumption Expenditure (PCE). The Core PCE rose 1.4% from July 2016 to July 2017, down from 1.5% in June; it has been declining since the beginning of the year. The Fed's target range is 2%. With inflation running low, the Fed will most likely be on hold to raise the short term Fed Funds Rate at future FOMC meetings.
Mortgage rates continued to decline this week in this low inflation environment. Freddie Mac reported Thursday morning that the 30-year fixed mortgage rate fell to 3.82% this week and has fallen four weeks in a row. That rate does carry a 0.5 point added on top. Last year this time the rate was 3.46%. Freddie Mac also reported that the 15-year fixed-rate mortgage dropped to 3.12% from 3.16%.
The National Association of REALTORS® (NAR) reported on Thursday that Pending Home Sales in July fell 0.8% and has declined four of the last five months. The NAR said that staggering low inventories throughout the country continue to stall contract activity. Lawrence Yun, NAR chief economist, says, “The housing market remains stuck in a holding pattern with little signs of breaking through. The pace of new listings is not catching up with what’s being sold at an astonishingly fast pace.”
|Thu, Aug 31 11:52 AM Treasury Sec Mnuchin says on CNBC that they have a "very detailed" tax plan ready.|
|Thu, Aug 31 11:27 AM July Pending Home Sales fell 0.8%, below the +0.5% expected, while the Chicago PMI was in line at 58.9. The data had little impact on trading.|
|Thu, Aug 31 10:16 AM National average gas prices rise $0.10 this week alone after the devastation from Hurricane Harvey.|
|Thu, Aug 31 10:12 AM Mortgage rates continue to decline as the 30-yr fixed rate fell to 3.82% this week with 0.5 point on top, reports Freddie Mac.|
|Thu, Aug 31 9:31 AM Stocks open higher. Dow +52 points.|
|Thu, Aug 31 8:53 AM The Core PCE on an annual basis ticked down to 1.4% from 1.5% as inflation remains muted and will be a key metric for the fed members at the September FOMC meeting.|
|Thu, Aug 31 8:49 AM Weekly Initial Jobless Claims 236K, in line and near unchanged from the previous week.|
|Thu, Aug 31 8:38 AM The New York Fed will purchase up to $2.05B in 30-yr Fannie/Freddie 3.5% and 4% coupons beginning at 2:00 p.m. ET.|
|Thu, Aug 31 8:35 AM Not much reaction to the economic data as traders look ahead to the August Jobs Report set to be released tomorrow morning.|
|Thu, Aug 31 8:31 AM July Core PCE 0.1%, in line.|
|Thu, Aug 31 8:31 AM Personal Income 0.4% vs 0.3%. Personal Spending 0.3% vs 0.4% expected.|
|Thu, Aug 31 8:29 AM U.S. dollar index 93.24, +0.42.|
|Thu, Aug 31 8:29 AM WTI oil $46/barrel near unchanged.|
|Thu, Aug 31 8:26 AM The 10-yr T Note yield at 2.14%, near unchanged.|
|Thu, Aug 31 8:24 AM President Trump said yesterday he wants to see the corporate tax rate drop to 15% but offered no new tax plan, leaving the proposal in the hands of Congress.|
|Thu, Aug 31 8:23 AM S&P futures higher after solid global economic data and after yesterday's 3% GDP and better than expected ADP data.|
|Thu, Aug 31 8:19 AM MBS open near unchanged ahead of a plethora of data that includes Personal Income & Spending, Core PCE, Chicago PMI, Weekly Initial Jobless Claims and Pending Home Sales.|
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.