August 25th, 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: 11:53 am. All times are Eastern Standard.
At the Close: Not much action again today in the Mortgage Bond markets as players did not add to positions as rangebound trading took hold. Better-than-expected Durable Orders and a weak 7-yr Note auction weighed on prices. The 3% Fannie Mae 30-yr coupon closed near unchanged at 103.69. Stocks ended modestly lower on declining healthcare and consumer names. The Dow lost 33.07 points to 18,448.41, the S&P 500 fell 2.97 points to 2,172.47, while the Nasdaq was down 5.49 points to end at 5,212.20. WTI oil closed at $47.33/barrel, +$0.56. Tomorrow's economic data includes the second reading on Q2 GDP and Consumer Sentiment. Fed Chair Yellen will speak at 10:00 a.m. ET from Jackson Hole, Wyoming and traders and investors around the globe will hang on her every word. Be sure to look to the Market News section of the MMG website for the headlines and market reaction.
11:45 am this commentary will be pretty much the same as yesterday, Traders around the world have their eyes on Jackson Hole where Janet Yellen, the Fed Chairman is speaking Friday at 10 am. See yesterday’s morning commentary about Hawks and Doves. It is expected that she will not say much for fear of upsetting the economy. Stay tuned for tomorrows post.
The 3% MBS is down 3 ticks from Wednesday’s close at 103.69 above the 50 day moving average (Black line) of $103.61, and sitting on the 25 day moving average (Green Line) of $103.69. The Rate below are unchanged from yesterday.
Feel free to call (205-266-5669) or email (email@example.com) John for a quote based on the terms of you loan.
11:45 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. All Times are Eastern Standard Time.
11:13 AM - The Dow, S&P and the Nasdaq edge into positive territory.
10:33 AM - The S&P continues to hover near unchanged as traders may not be looking to add any new positions ahead of Fed Chair Yellen's speech tomorrow morning at the Fed economic symposium in Jackson Hole, Wyoming.
10:20 AM - Freddie Mac reports that the 30-yr fixed conventional mortgage rate ($417K or less) remained at 3.43% this week with 0.6 in points and fees.
9:37 AM - Hawish Fed member Esther George says "time is right for a near-term rate hike" but that rates should go higher gradually.
9:32 AM - As expected, Stocks open modestly lower. Dow -23 points.
9:29 AM - WTI oil $46.68/barrel, near unchanged.
8:55 AM - The New York Fed will purchase up to $2.05B in Fannie/Freddie 30-yr 3% and 3.5% later this morning.
8:41 AM - Not much reaction to the economic data.
8:34 AM - July Durable Orders +4.4% vs the +3.5% expected.
Weekly Initial Jobless Claims -1K to 261K, below the 265K expected.
8:27 AM - U.S. dollar index 94.67, -0.07.
S&P futures modestly lower.
10-yr T Note yield 1.55%, unchanged.
More of the same trading pattern continues today as MBS open near unchanged as the countdown to Yellen begins.