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.|
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.