8/19/16 Quiet Summer Day (Testing the 50 day moving average)

August 19th, 2016

What Is Going On With Interest Rates?  #wigowir

When the price of Mortgage Backed Securities (MBS) on the Chart above goes down rates go up, and when the price goes up rates come down. Chart was posted at: 10:26 am et.

Commentary

Currently the 3% MBS is sitting 1 tick above the 50 day moving average (Black line on the chart) at $103.56. Nothing else new to report at this time.. See News ticker below for more information.

For more information call (205-266-5669) or email (jmarbury@nationalbankofcommerce.com) John.

Thanks!

10:20 AM ET New Rates have been posted

30-Year Fixed 3.375% (3.457% APR) No Origination Fee  

15-Year Fixed 2.750%   (2.892% APR) No Origination Fee

7-1 ARM 30 year 3.000% (3.341% APR) No Origination Fee

For more rates and details click: http://www.johnmarbury.com/page5.html/

  • 30-Year Fixed-Rate Mortgage: The monthly payment on a $200,000 30-year Fixed-Rate Loan at 3.375% and 70% loan-to-value (LTV) is $884.19 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.457%. 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 2.750% and 70% loan-to-value (LTV) is $1357.24 with 0 points due at closing. The Annual Percentage Rate (APR) is 2.892%. 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.
  • 7-1 30 year ARM for $200,000 with an Initial Interest Rate of 3.000% (3.334% APR) your monthly payments for years 1 – 7 would be $870.41 and for years 8 -30 monthly payments would be $886.87 (based on the current Index  of  1.210% Plus Margin of 2.25% to $417,000 and 2.5% to $900,000).  Monthly payments do not include taxes and insurance and the actual payment obligation will be greater.  Your variable interest rate is subject to a floor of your Initial Interest Rate.  Your variable interest rate can increase or decrease after the seventh year by 2 percentage points annually and can increase 4 percentage points over your Initial Interest Rate over the term of your loan.  The index for this loan program is the average of the interbank Offered Rates for One Year Denominated Deposits in the London Market (LIBOR)

News Ticker  

All Times are Eastern Standard Time. 

10:26 AM - Stocks cutting losses, MBS drifting lower.

10:04 AM - Fannie Mae says full year economic growth, GDP, at 1.8%.

9:32 AM - Stocks open lower, Dow -70 points.

9:30 AM - Mortgage Bonds are modestly lower in the absence of any market moving events. Carefully floating is recommended.

8:47 AM - Quiet summer trading patterns will be seen today, especially since it's a Friday.

8:25 AM - The benchmark 3% Fannie Mae 30-yr coupon trades near resistance at the 25-day Moving Average.

There are no scheduled market moving events today.

Dallas Fed President Kaplan said that the Fed had limited room to maneuver in hiking rates given the U.S. economy's sluggish momentum.

Contact

John Marbury
jmarbury@nationalbankofcommerce.com
NMLS# 740833
Phone:205-266-5669
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209
 

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