October 3rd, 2017
Rates Effective October 3rd, 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 edging higher, despite the move up in the major Stock indexes. Carefully floating is recommended.
After close Commentary: Not much action in the Treasury or Mortgage Bond markets today with the rally in Stocks rolling on. There were no economic reports released today. Home prices remained on a steady upward trend, as reported by CoreLogic. The Fannie Mae 30-yr 3.5% coupon rose by 6bp to end at 103.12, just above support at the 100-day Moving Average. Stocks ended with fresh record highs buoyed by shares of tech, airlines and carmakers. The Dow rose 84.07 points to 22,641.67, the S&P 500 was up 5.46 points to 2,534.58, while the NASDAQ settled at 6,531.71, +14.99 points and as mentioned, all fresh record high closes. WTI oil closed at $50.42/barrel, -$0.16. The yield on the 10-yr T Note 2.32%. Tomorrow's economic data includes the ADP Private Payrolls Report and ISM Service Index. Fed Chair Yellen will be speaking at the Community Banking in the 21st Century Conference in St. Louis at 3:15 p.m. ET tomorrow but we don't know if she will touch on monetary policy.
Late morning Commentary: Home price gains continued their steady rise in August due to the ongoing theme of a limited amount of homes for sale on the market. CoreLogic reports that home prices, including distressed sales, rose 6.9% from August 2016 to August 2017, up from a gain of 6.7% annually in July. On a monthly basis, prices rose 0.9% from July to August. Looking ahead, prices are expected to rise 4.7% from August 2017 to August 2018.
The major Stock indexes continued to reach new highs in Monday's trading session. The Dow (22,557.60), S&P (2,529.12) and NASDAQ (6,516.71) all closed at record highs yesterday after economic data pointed to underlying strength in the U.S. economy. Stock investors are also hopeful on solid corporate earnings next week and as tax reform is on the horizon. Stocks are higher this morning. In comparison, the closely watched S&P 500 hit a closing low of 676.53 back on March 9, 2009.
The government Jobs Report for September will be released on Friday and will garner the most attention of the economic reports being released this week. Expectations are calling for just 75,000 jobs created due in part to storms Harvey and Irma and is below the 175,000 average per month so far in 2017. The Unemployment Rate is expected to remain at 4.4%. A key metric within the report will be hourly earnings as wages have been stagnant despite the economy being at full employment
|Tue, Oct 03 11:17 AM MBS holding meager gains. Stocks higher. 10-yr yield 2.33%.|
|Tue, Oct 03 10:05 AM Stocks higher soon after the open, Dow +54 points as the rally rolls on.|
|Tue, Oct 03 9:19 AM The New York Fed is purchasing up to $2.2B in 30-yr Fannie/Freddie 3.5% and 4% coupons that began at 9:00 a.m. ET.|
|Tue, Oct 03 8:36 AM CoreLogic reports that home prices, including distressed sales, rose 6.9% from August 2016 to August 2017 and a 0.9% monthly gain from July to August.|
|Tue, Oct 03 8:32 AM U.S. dollar index 93.48, +0.07.|
|Tue, Oct 03 8:29 AM The Asian markets remain closed for Golden Week while the European session is also quiet due to Unification Day in Germany.|
|Tue, Oct 03 8:28 AM WTI oil $50.30/barrel, $-0.30.|
|Tue, Oct 03 8:28 AM There are no economic reports due for release today.|
|Tue, Oct 03 8:27 AM The investing world awaits third quarter earnings which are expected to increase 6.2% from a year earlier for the companies in the S&P 500. Earnings season kicks off next week.|
|Tue, Oct 03 8:18 AM The Fannie Mae 30-yr 3.5% coupon hit a 10-month price high of 103.94 on September 8, 2017 and on the same day, the 10-yr yield hit a 10-month low of 2.01%.|
|Tue, Oct 03 8:17 AM The Dow (22,557.60), S&P (2,529.12) and the NASDAQ (6,516.71) all closed at record highs yesterday.|
|Tue, Oct 03 8:14 AM The yield on the 10-yr T Note at 2.34%, unchanged.|
|Tue, Oct 03 8:14 AM S&P futures modestly higher as the rally rolls on.|
|Tue, Oct 03 8:12 AM MBS open near unchanged as the Fannie Mae 30-yr 3.5% coupon grinds near support one (S1) at the 100-day Moving Average (103.10).|
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.