Mortgage Rates & Hurricanes Impact New Home Sales

September 26th, 2017

Rates Effective September 26, 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 fee on all posted rates.  Call for other rates. ***Rate Assumptions below the news

Suggestions that can change during the day: Mortgage Bond prices are near unchanged ahead of a key speech from Fed Chair Yellen later today. Carefully floating is recommended.

After close Commentary: Mortgage Bonds saw little movement today as the markets are still a bit confused over the Fed's low inflation mystery and after Yellen's dovish or hawkish words as she seemed to speak out of both sides of her mouth. The Fannie Mae 30-yr 3.5% coupon closed at 103.34, unchanged. Stocks also had a lackluster session closing near unchanged. The Dow lost 11.77 points to 22,284.32, the S&P was unchanged at 2,496.84, while the NASDAQ was up 9.57 points to 6,380.16. WTI oil closed at $51.88/barrel, -$0.34. The 10-yr T Note yield 2.23%. Tomorrow's economic data includes Pending Home Sales and Durable Orders. 

Late morning Commentary:   The Commerce Department reported on Tuesday that Hurricanes Harvey and Irma impacted New Home Sales data in August, driving it down 3.4% from July to an annual rate of 560,000 annualized units. This was below the 577,000 expected and an eight-month low. The storm destruction hampered reporting, the Commerce Department said, with “information on the sales status at the end of August collected for only 65% of cases in Texas and Florida counties” affected by the hurricanes. That compares to a normal response rate of 95%.

New Home Sales were 1.2% lower than August 2016, falling in the Northeast, South and West while remaining unchanged in the Midwest. The median sales price of new houses sold in August 2017 was 0.4% higher than last year. Finally, new home inventory had a 6.1- month supply in August, up from 5.7 in July. A six-month supply is seen as a healthy balance between supply and demand.

The S&P Case Shiller 20-city Home Price Index showed a 5.8% increase from July 2016 to July 2017. Gains continue for home prices due in part to limited homes for sale and a robust jobs market. This pace remains double the average wage growth and is unsustainable for the long term - something will have to give. Either wages grow or price gains ease. On a national level, prices rose 5.9% in July from a year ago. A spokesperson from Case-Shiller said home price gains have largely come from the Pacific Northwest. 

Tue, Sep 26 11:45 AM The Mortgage Market Guide has posted three new videos to the site which you can access from the home page to the far right of the website.
Tue, Sep 26 11:29 AM Stocks turn negative.
Tue, Sep 26 10:10 AM August New Home Sales of 560K was an eight-month low.
Tue, Sep 26 10:05 AM September Consumer Confidence 119.8, near in line.
Tue, Sep 26 10:03 AM August New Home Sales -3.5% from July to an annual rate of 560K vs the 577K expected. July revised higher to 580K from 571K.
Tue, Sep 26 9:36 AM Technology stocks recovering after yesterday's sell-off.
Tue, Sep 26 9:33 AM Stocks trade higher soon after the 9:30 a.m. ET opening bell on Wall Street.
Tue, Sep 26 9:12 AM The S&P Case Shiller 20-city Home Price Index showed a 5.8% increase from July 2016 to July 2017.
Tue, Sep 26 8:32 AM Fed Fund Futures show a near zero percent chance of a hike to the short term Fed Funds Rate at the November 1 FOMC meeting and a 71% chance at the December meeting.
Tue, Sep 26 8:28 AM S&P futures flat as investors look for more clarity on inflation and interest rates hikes from Ms. Yellen later today.
Tue, Sep 26 8:21 AM The Fannie Mae 30-yr 3.5% coupon trades just above support one (S1) at the 50-day Moving Average (103.24).
Tue, Sep 26 8:20 AM Fed Governor Lael Brainard will be speaking this morning at 10:30 a.m. ET.
Tue, Sep 26 8:19 AM Fed Chair Yellen will deliver the keynote address to the NABE annual meeting in Cleveland at 12:45 p.m. ET with the topic being "Inflation, Uncertainty, and Monetary Policy."
Tue, Sep 26 8:19 AM U.S. dollar index at 92.88, +0.44.
Tue, Sep 26 8:15 AM The Treasury will auction $26B 2-yr Notes today, results at 1:00 p.m. ET.
Tue, Sep 26 8:14 AM 10-yr T Note yield 2.22%, unchanged.
Tue, Sep 26 8:07 AM Mortgage Bond prices open near unchanged ahead of S&P Case Shiller Home Price Index at 9:00, Consumer Confidence and New Home Sales at 10:00

***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 3.250% and 70% loan-to-value (LTV) is $1405.34 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.397%. 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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