9/08/16 ECB leaves Rates the same

September 8th, 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 11:55 am. All times are Eastern Standard. Currently Mortgage backed securities are trading at $103.88 down 12 basis points from Wednesday’s close, above the 50 and 25 day moving average, and below $104.00. 

Commentary 11:55 am the European Central Bank (ECB) made no change to its interest rates.  With this news the Euro got stronger, European rates went higher along with our Treasuries. Jobless Claims came in 4,000 lower to 259,000. 

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

9:25 AM 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. 

11:50 AM - Americans purchased about 406 million gallons of gasoline per day, on average, in June, according to data the U.S. Energy Information Administration released last week, surpassing a previous record set in July 2007.

11:41 AM - Treasury bonds pay a fixed rate of interest every six months until they mature. They are issued in a term of 30 years.

11:40 AM - Treasury notes, sometimes called T-Notes, earn a fixed rate of interest every six months until maturity. Notes are issued in terms of 2, 3, 5, 7, and 10 years.

11:39 AM - Treasury bills, or T-bills, are sold in terms ranging from a few days to 52 weeks. Bills are typically sold at a discount from the par amount (also called face value). For instance, you might pay $990 for a $1,000 bill. When the bill matures, you would be paid $1,000.

The Treasury will sell a total of $56B in 3 and 10-yr Notes along with 30-yr Bonds next week.

11:17 AM - Stocks whittling away losses.

10:06 AM - Freddie Mac reports that the 30-yr fixed conventional mortgage rate ($417K or less) edged lower to 3.44% from 3.46% with 0.6 in points and fees.

9:53 AM - Dow -67 points.

9:33 AM - Lower shares of Apple (AAPL, $107.0, -$1.36) weighs on the equity markets.

The MBA reports a dip in credit availability in August.

Stocks opening to the downside.

8:32 AM - Weekly Initial Jobless Claims -4K to 259K, below the 265K expected.

8:16 AM
Weekly Initial Jobless Claims will be released at 8:30.

U.S. dollar index 94.62, -0.33.

WTI oil at $46.23/barrel, +$0.74.

The 10-yr T Note yield edges higher to 1.55% from yesterday's close of 1.53%.

MBS open near unchanged as S&P futures also trade near the flat line as investors ponder the current economic scene and the future path of interest rates.

The ECB leaves rates unchanged, asset purchase program unchanged, to run until March 2017 or beyond.

 

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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