Mortgage Rates & Home prices rise!

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).

 

***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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