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 (email@example.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/
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.
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.