Mortgage Rates & PPI Inline

October 12th, 2017

Rates Effective October 12th, 2017 10:30 AM EST

*30-Year Fixed Rate 4.000% (4.087%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: Lower Stock prices are boosting Mortgage Bond prices this morning. Carefully floating is recommended.

After close Commentary: MBS rose today though traded in a narrow range for most of the session. The uptick in wholesale inflation was shrugged off by Bond prices as they were boosted by declining equities. The Fannie Mae 30-yr 3.5% coupon gained 16bp to end at 102.97, above both support levels. Stocks took a breather after multiple record highs as some profit taking set in after mixed earnings data from JPMorgan Chase and Citigroup. The Dow fell by 31.88 points to 22,841.01, the S&P 500 lost 4.31 points to 2,550.93, while the NASDAQ declined by 12.03 points to end the session at 6,591.51. WTI oil closed at $50.60/barrel, -$0.70. 10-yr yield 2.32% as it continues to edge lower from last Friday's 2.40%. Tomorrow's economic data includes CPI, Retail Sales and Consumer Sentiment.


Late morning Commentary:  Inflation at the wholesale level ticked up in September as energy prices rose after Hurricane Harvey. Gas prices surged 11% after many refineries were shut down after the storm. The September Producer Price Index (PPI) rose 0.4%, which was in line with estimates, while annual PPI jumped 2.6%, the biggest gain since February 2012. The so-called Core PPI, which strips out volatile food and energy, rose 0.2% as expected, while the annual Core PPI was up 2.1%.

In earnings news, JPMorgan Chase reports that profits topped estimates in quarterly earnings but Bond trading revenue plunged. Citigroup beat on both earnings and revenues. On Friday, Bank of America, PNC and Wells Fargo will report their numbers. Earnings season is the period of time during which a large number of publicly-traded companies release their quarterly earning reports.

Mortgage rates continued to edge higher this week after hitting lows early in September that had not been seen since the time of the presidential election. Freddie Mac reports that the 30-year fixed-rate mortgage rose 6 basis points to 3.91% with an average point of 0.5. The 15-year fixed-rate mortgage also rose 6 basis points to 3.21% with an average point of 0.5.The 30-year rate was 4.20% in the beginning of the year while last year this time it was at 3.47%.

Thu, Oct 12 9:46 AM Stocks trading lower soon after the open.
Thu, Oct 12 8:33 AM Weekly Initial Jobless Claims -15K to 243K, below the 255K expected as the storm related spike in claims eases.
Thu, Oct 12 8:32 AM September PPI 0.4%, in line with estimates. Core PPI 0.2%, in line.
Thu, Oct 12 8:28 AM The more closely watched Consumer Price Index will be released tomorrow.
Thu, Oct 12 8:27 AM The Producer Price Index and Weekly Claims data at 8:30.
Thu, Oct 12 8:25 AM 10-yr T Note yield 2.33%, just below yesterday's close of 2.34%, down from 2.40% on Friday.
Thu, Oct 12 8:23 AM The death toll rises to 23, hundreds missing, across California's wine country.
Thu, Oct 12 8:22 AM Citigroup beats on both earnings and revenues.
Thu, Oct 12 8:20 AM JPMorgan Chase reports that profits top estimates in quarterly earnings but Bond trading revenue plunges.
Thu, Oct 12 8:18 AM S&P futures edge lower after the Dow, S&P and NASDAQ all hit record closing highs yesterday.
Thu, Oct 12 8:17 AM MBS open modestly higher after clawing their way above two key technical support levels since Friday morning's low.


***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 4.000% and 70% loan-to-value (LTV) is $954.83 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 has attempted to verify the information contained on this post.  However any aspect of such may change without notice. 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.  


John Marbury
Mortgage Lender NMLS# 514390
NMLS# 740833
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209

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