Mortgage Rates & Producer Price Index (PPI)

September 13th, 2017

Rates Effective September 13, 2017 10:30 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: Higher wholesale U.S. and Eurozone inflation weighs on Mortgage Bond prices. Locking is suggested.

After close Commentary:  Mortgage Bond prices hovered near unchanged to slightly lower for most of the session as Stocks also hovered near unchanged until squeaking out some minor gains. The small gains in Stocks pushed the three major indices to record high closing levels. Today's hot annual PPI and an uptick in inflation in Europe weighed on Bond prices and pushed yields higher. The Fannie Mae 30-yr 3.5% coupon closed at 103.31, -3bp. The Dow gained 39.32 points to 22,158.18, the S&P 500 closed at 2,498.37 while the tech heavy NASDAQ was up 5.90 points to end at 6,460.18. WTI oil closed at $49.30/barrel +$1.07. The 10-yr T Note yield 2.19%. The Consumer Price Index and Weekly Initial Jobless Claims will be released tomorrow morning.

 

Late morning Commentary:   The Mortgage Bankers Association reports that mortgage applications for new home purchases jumped 7% from July to August, up 6.8% from August 2016. The average loan size for new homes increased to $334,940 in August, the highest since the series began. "Mortgage applications for new homes rebounded a bit in August, as lower than expected interest rates and growth in existing home prices continue to fuel demand, sustaining year to date growth in applications of more than 7% compared to 2016," said Lynn Fisher, MBA's Vice President of Research and Economics.

Mortgage rates continued to decline in the latest week due in part to low inflation levels here in the U.S. The Mortgage Bankers Association reports that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) fell to 4.03% from 4.06% in the previous week. Potential borrowers will also have to add on at least a 0.30 point on top of that rate. In addition, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased slightly from 3.96% to 4%.

Rushing into the holiday season this year is Target as the retailer announced that the discount chain will hire up to 100,000 seasonal workers for the November and December shopping period. That is a 43% surge from last year when Target hired 70,000 seasonal workers. A large percentage of the workers hired will be assigned to assemble and ship online orders in addition to staffing the stores for customers to pick up online orders. Hiring events will take place from October 13 through October 15.

9:32 AM ET  3.5% Fannie Mae 30-yr coupon Down 0 bp at a price of 103.34  up 6 bp when rates were set yesterday at 10:00 am et Open 103.38 High 103.41 Low 103.34

Dailey Moving averages we are currently above:  200 $102.60  100  $103.02   50 103.12.  Others numbers psychological numbers New First level of Support 25 day moving average 103.40,  New Second Level of support $103.25

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

Wed, Sep 13 8:39 AM The 3.5% Fannie Mae 30-yr coupon continues to trade near support at the 25-day Moving Average.
Wed, Sep 13 8:34 AM The 30-yr fixed conforming mortgage rate at 4.03%, lowest since mid-November, FHA 3.94%, jumbo 3.96%.

Wed, Sep 13 8:33 AM The MBA reports that the refinance index jumped 9%, purchase index +10.9%.

The Producer Price Index (PPI) is a weighted index of prices measured at the wholesale, or producer level. A monthly release from the Bureau of Labor Statistics (BLS), the PPI shows trends within the wholesale markets (the PPI was once called the Wholesale Price Index), manufacturing industries and commodities markets.

Economic Indicators: Producer Price Index (PPI) - Investopedia

www.investopedia.com/university/releases/ppi.asp
Wed, Sep 13 8:32 AM Annual Core PPI 2%, a bit hotter than expected.
Wed, Sep 13 8:31 AM August PPI 0.2% vs the 0.3% expected. Core PPI, which strips out volatile food and energy 0.1% vs 0.2% expected.
Wed, Sep 13 8:29 AM The MBA reports that its Market Composite Index, a measure of total mortgage loan application volume, rose 9.9% last week.
Wed, Sep 13 8:27 AM The Treasury will sell $12B 30-yr Bonds today, results at 1:00 p.m. ET and comes after weak demand for the 3- and 10-yr offerings Monday and Tuesday.
Wed, Sep 13 8:26 AM The August PPI will be released at 8:30.
Wed, Sep 13 8:23 AM WTI oil $48.71/barrel, +$0.49.
Wed, Sep 13 8:22 AM U.S. dollar index 91.79, near unchanged.
Wed, Sep 13 8:20 AM 10-yr T Note yield 2.16%, unchanged.
Wed, Sep 13 8:12 AM Stock futures lower as Apple shares declined yesterday on concerns about pricing for the new iPhones and shipping date of the new iPhone X and as North Korea showed the usual pushback over new UN sanctions.
Wed, Sep 13 8:09 AM MBS open near unchanged unable to push above recent highs. S&P futures called lower after hitting record high closes in the past two sessions.

***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 3.875% and 70% loan-to-value (LTV) is $940.47 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.961%. 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
Mortgage Lender NMLS# 514390
NMLS# 740833
Phone:205-266-5669
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209
 

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