8/30/16 Home Prices & Confidence UP! Is that a Coincidence?

August 30th, 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: 10:36 am.  All times are Eastern Standard.

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)

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

 

10:02 AM - August Consumer Confidence surges to 101.1, well above the 97 expected and up from the 97.3 in July. It was the best reading since September 2015.

9:46 AM - Soon after the open, the S&P trades near unchanged.

The June Case Shiller 20-city Home Price Index shows a 5.1% increase year-over-year, inline with estimates, below the 5.3% recorded in May.

9:02 AM - The New York Fed will purchase up to $2.05B in 30-yr Fannie Mae 3 and 3.5 coupons beginning at 9:00 a.m. ET.

8:43 AM - June Case Shiller Home Price Index (9:00 ET) and August Consumer Confidence (10:00 ET).

U.S. dollar index 95.81, +0.27.

8:28 AM - Vice Fed Chair Fischer spoke earlier this morning but his remarks didn't move the markets much saying the economy is close to full employment, productivity is sluggish.

Vice Fed Chair Fischer spoke earlier this morning but his remarks didn't move the markets much saying the economy is close to full employment, productivity is sluggish.

S&P futures are near unchanged after Stocks also rallied yesterday.

WTI oil $47.48/barrel, +$0.48.

The 10-yr T Note yield at 1.57% from yesterday's close of 1.56%.

The benchmark 3% Fannie Mae 30-yr coupon opens near unchanged after yesterday's rally that ended in the price closing just above resistance at the 25-day Moving Average (103.72).

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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As a loan officer (mortgage broker 1989-2006) since 1985, I have seen a lot of changes over the years. The only consistency in the mortgage business and life is change. This is the reason that we believe it is necessary to move quickly and to be early. Let us know if you have any questions or if we can help in any way.

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