August 22nd, 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: 9:26 am et.
Close of Business: MBS drifted higher during the session in a somewhat quiet session. There were no scheduled market moving reports today. The 3% Fannie Mae 30-yr coupon rose 12bp to end the session at 103.66. Stocks closed slightly lower weighed down by lower oil prices and energy related shares along with Fed rate hike timing. The Dow lost 23.15 points to 18,529.42, the S&P 500 fell 1.23 points to 2,182.64, while the tech heavy Nasdaq was up 6.22 points to finish the day at 5,244.60. WTI oil was last seen at $47.05/barrel down $1.47. The 10-yr T Note yield 1.54%. August New Home Sales will be released tomorrow morning at 10:00 a.m. ET.
9:26 am et the 3% MBS is up 12 ticks from Friday’s close at 103.66 above the 50 day moving average of $103.56, and just below the 25 day moving average of $103.67.
For more information call (205-266-5669) or email (email@example.com) John.
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/
Below is the news when it happened and the market's reaction.
4:03 PM - S&P ends slightly lower weighed down by falling oil prices and Fed timing focus.
3:38 PM - MBS holding modest gains.
2:51 PM - Stocks remain below sea level as oil prices and Fed focus weighs.
12:52 PM - At midday, MBS holding slight gains, S&P near unchanged.
11:22 AM - Stocks slip back into negative territory.
10:44 AM - Black Knight Financial Services says fewer homeowners are refinancing, despite near all-time low rates and an uptick in borrowers eligible to refinance, rising to 8.7 million at the end of June.
10:28 AM - The S&P cuts its losses and trades to unchanged.
10:03 AM - Fed Chair Yellen will be speaking at the Fed's annual economic symposium at Jackson Hole, Wyoming later this week on Friday.
9:40 AM - As expected, Stocks open lower - Dow -76 points.
9:01 AM -Oil prices are also sliding as Iraq prepares to increase its exports and on speculation that producers will not rein in oversupply.
The benchmark 3% Fannie Mae 3-yr coupon (103.66) trades just above support at the 50-day Moving Average (103.56) and at resistance at the 25-day Moving Average (103.67).
8:36 AM - The Treasury will sell a total of $88B in 2, 5 and 7-year Notes on Tuesday, Wednesday and Thursday.
8:33 AM - WTI oil 47.45/barrel, -$1.07.
8:32 AM - U.S. dollar index +0.11, to 94.60, though off its earlier high of 94.94 after Fischer's remarks.
8:31 AM - 10-yr T Note yield 1.56% from Friday's close of 1.58%.
There are no scheduled market moving events today.
MBS trading modestly higher to begin the week.
S&P futures lower as oil prices decline on dollar strength after Fischer's remarks as the greenback anticipates an interest rate increase this year. .
Mr. Fischer did not give explicit views on his interest rate outlook.
Mr.Fischer went on to say that he expects GDP growth to pick up in coming quarters.
Fed Vice Chair Stanley Fischer makes some hawkish comments saying "we are close to our targets" in regards to full employment and 2% inflation.