September 19th, 2017
Rates Effective September 19, 2017 10:30 AM EST
*30-Year Fixed Rate 3.875% (3.961%APR)
**15-Year Fixed Rate 3.250% (3.397% 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: Fed on balance sheet: The plan is to slowly stop reinvesting the money that its portfolio throws off. The Fed has said it will start by allowing $6 billion in Treasury securities and $4 billion in Mortgage-Backed Securities to mature every month. For this reason we believe it is now time to lock in.
After close Commentary: Not much action in the Bond markets today as traders were not moved by the housing data, Hurricane Maria to hit directly on Puerto Rico as a category 4 or 5 storm, a fiery speech by President Trump at the U.N. and Stocks maintaining their upward bias. The Fannie Mae 30-yr 3.5% coupon closed unchanged at 103.19 and right on support supplied by the 50-day Moving Average. Stocks rose fueled by higher financial shares. The Dow gained 39.45 points to 22,370.80, S&P 500 was up 2.78 points to 2,506.65, while the NASDAQ gained 6.68 points to end at 6,461.32, all closing at fresh record highs. WTI oil closed at $49.48/barrel, -$0.43. 10-yr yield 2.24%. The Fed statement will be released tomorrow at 2:00 p.m. ET accompanied by the Fed's economic projections and Fed Chair Yellen's news conference at 2:30. As always, be sure to be tuned in all day and especially around 2:00 p.m. ET.
Late morning Commentary: The Commerce Department reported that Housing Starts fell in August for the second straight month, slipping 0.8% from July to an annual rate of 1.18 million units; although, this was above the 1.17 million expected. The declines are due in part to shortages of land and skilled labor as well as rising costs for building materials. On a positive note, year-over-year Housing Starts rose 1.4%.
Single-family Housing Starts, which make up the biggest share of the housing market, rose 1.6% with increases in the South and West and declines in the Midwest and Northeast. Multi-family dwellings fell 5.8% from July and are down 23% from August 2016. Building Permits, a sign of future construction, rose 5.7% from July, hitting their highest level since January. The Housing Starts report measures the number of residential units on which construction had begun each month.
Storied retailer Toys "R" Us filed for bankruptcy protection just ahead of the holiday shopping season. The near 70-year-old seller of toys pioneered the big-box format for toy sales and was the place to shop for generations of parents. A heavy debt burden and competition from on line retailers are a few key reasons for the bankruptcy announcement. Toy "R" Us will remain open into the holiday shopping season as it works out a court-supervised reorganization plan.
|Tue, Sep 19 9:45 AM The S&P trades near unchanged soon after the opening bell on Wall Street.|
|Tue, Sep 19 8:55 AM Investors will be watching President Trump's speech at the U.N. General Assembly where he is expected to urge U.N. member states to intensify pressure on North Korea to give up its nuclear weapon ambitions.|
|Tue, Sep 19 8:37 AM July Housing Starts revised to 1.19M from 1.155M.|
|Tue, Sep 19 8:34 AM Building Permits +5.7% from July to an annual rate of 1.3M vs the 1.212M expected, highest since January.|
|Tue, Sep 19 8:32 AM August Housing Starts -0.8% from July to an annual rate of 1.18M units vs the 1.17M expected.|
|Tue, Sep 19 8:19 AM The Fannie Mae 30-yr 3.5% coupon (103.25) trades just above support supplied by the 50-day Moving Average (103.18).|
|Tue, Sep 19 8:18 AM Housing Starts and Building Permits will be released at 8:30.|
|Tue, Sep 19 8:16 AM U.S. dollar index 91.72, -0.10.|
|Tue, Sep 19 8:15 AM Toys R Us files for Chapter 11 bankruptcy.|
|Tue, Sep 19 8:15 AM WTI oil $50.25/barrel, +$0.34.|
|Tue, Sep 19 8:14 AM The 10-yr T Note yield edges lower to 2.21% from yesterday's close of 2.23%.|
|Tue, Sep 19 8:13 AM S&P futures higher as the equity rally rolls on as both the Dow (22,331.35) and the S&P (2,503.87) closed at record highs yesterday.|
|Tue, Sep 19 8:10 AM Mortgage Bonds open modestly higher as the Fed members kick off their two-day FOMC meeting on Capitol Hill later this morning. There will be no headlines out of the meeting today.|
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.