8/29/16 Gene Wilder

August 29th, 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: The close of business.  All times are Eastern Standard.

Commentary

At the close Mortgage Bonds rallied today gaining back all of Friday's losses showing resilience in the face of decent economic data and rallying Stock prices. The Bond gained 31bp to end the session at 103.81. We are now back above the 50 &25 day moving average. The 10-yr T Note yield fell to 1.56% from Friday's close of 1.63%. Stocks rallied led by higher shares in the financial sector on the notion of higher interest rates sooner rather than later. The Dow gained 107.59 points to 18,502.99, the S&P 500 was up 11.34 points to 2,180.38, while the tech heavy Nasdaq was higher by 13.41 points to end the session at 5,232.32. WTI oil closed at $46.98/barrel, -$0.66. Tomorrow's economic data includes Consumer Confidence and the Case Shiller Home Price Index.

 

Feel free to call (205-266-5669) or email (jmarbury@nationalbankofcommerce.com) John for a quote based on the terms of you loan.

9:41 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)

 

4:16 PM - Famed actor Gene Wilder passes away at the age of 83. "My name is Jim, but some people call me Jim"

 2:36 PM - Black Knight Financial Services reports that home prices were up 0.8% in June from May, up 5.3% from June 2015.

12:59 PM - Near midday, MBS modestly higher. Stocks rallying on higher financial shares. 10-yr T Note edges lower to 1.58%. WTI oil $46.87/barrel -$0.77.

12:19 PM - What is book value? A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill.

9:41 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)

Below is the news when it happened and the market’s reaction.  All Times are Eastern Standard Time. 

 

 

 

4:16 PM - Famed actor Gene Wilder passes away at the age of 83.

 2:36 PM - Black Knight Financial Services reports that home prices were up 0.8% in June from May, up 5.3% from June 2015.

12:59 PM - Near midday, MBS modestly higher. Stocks rallying on higher financial shares. 10-yr T Note edges lower to 1.58%. WTI oil $46.87/barrel -$0.77.

12:19 PM - What is book value? A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill.

 

10:57 AM - The notion of higher interest rates sparks a fire under financial stocks, spreads to the broader markets. Dow +100 points.

9:44 AM -Stocks higher to begin the week, Dow +68 points.

9:24 AM - WTI oil $46.77/barrel, -$0.88.

9:24 AM - U.S. dollar index 95.75, +0.21 on the notion that a hike in the Fed Funds Rate will come sooner rather than later.

8:37 AM - No reaction to the inline economic data and tame inflation numbers.

8:33 AM - July Core PCE 0.1%, inline, year-over-year 1.6%, unchanged.

July Personal Incomes 0.4%, Personal Spending 0.3%, both inline.

8:29 AM - 10-yr T Note yield at the upper of its range at 1.60%.

Personal Income & Spending, Core PCE at 8:30 a.m. ET.

S&P futures near unchanged as the equity markets ponder the path of interest rate hikes.

Fed Fund Futures currently show a 33% chance of a hike to the Fed Funds Rate in September.

MBS open near unchanged after Friday's decline, which was triggered by Fed Vice Chair Stanley Fischer's hawkish comments on interest rate hikes.

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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