September 15th, 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 after the close. All times are Eastern Standard. MBS showed resilience and closed near unchanged, despite the big rally in Stocks. Not much movement in MBS for most of the session after this morning's sea-saw action. The somewhat push-pull economic data, with a bias to weaker-than-expected, had little impact on MBS. The Fannie Mae 3% coupon closed at 103.47, +6bp. However, the weak Retail Sales data eased the chances for a rate hike next week, which sparked a big rally in Stocks. The Dow gained 177.71 points to 18,212.48, the S&P 500 was up 21.49 points to 2,147.26, while the tech heavy Nasdaq rose 75.91 points to 5,249.68. Shares of Apple (AAPL, $115.57, +$3.80) had a hand in pushing Stock prices higher. WTI oil closed at $43.91/barrel, +$0.33. The 10-yr T Note yield 1.69%. Tomorrow's economic data includes August CPI and September Consumer Sentiment.
9:24 AM New Rates have been posted
30-Year Fixed 3.500% (3.583% 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
Feel free to call (205-266-5669) or email (email@example.com) John for a quote based on the terms of you loan.
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.
2:27 PM - The 3% Fannie Mae 30-yr coupon flirts with resistance at 103.44.
2:20 PM - Dow +207 points.
2:02 PM - Home flipping rises to a six-year high in Q2 2016.
12:54 PM - Political dysfunction has become the biggest economic stumbling block for the U.S., according to a Harvard study, reports the Wall Street Journal.
12:51 PM - At midday, MBS near unchanged. S&P higher as the chance of a rate hike next week fades away.
11:45 AM - Dow +142 points on the notion that a Fed rate hike will not take place next week at the FOMC meeting.
10:24 AM - Dow +60 points led by surging shares of Apple (AAPL, $115.00, +$3.20).
10:20 AM - Freddie Mac reports that the 30-yr fixed conventional rate ($417K or less) rose to 3.50% this week with 0.5 in points and fees, up from 3.44% last week.
9:54 AM - Stocks turn positive.
9:31 AM - The S&P trades near unchanged at the open of trading on Wall Street.
9:29 AM - Renters are losing confidence in housing as less say it’s a good time to buy a home, according to the National Association of Realtors Housing Opportunities and Market Experience survey.
8:54 AM - MBS pare gains and fall to unchanged levels.
8:49 AM - The New York Fed will be purchasing up to $2.55B in Fannie/Freddie 30-yr 3s and 3.5s later this morning beginning at 11:15 a.m. ET.
8:47 AM - Bond prices now losing a bit of steam after the 8:30 economic data.
8:40 AM - The wave of push-pull economic data leaves MBS near pre-data levels.
8:37 AM - Weekly Initial Jobless Claims 260K vs 263K expected.
Empire Manufacturing -2.0 vs 0.0 expected. Philly Fed 12.8 vs 0.0 expected.
August PPI 0.0% vs 0.1%.
Core PPI 0.1%, inline.
Retail Sales x-autos -0.1% vs vs -0.3% expected.
August Retail Sales -0.3% vs -0.1% expected.
8:25 AM - WTI oil $43.94, +$0.36.
U.S. dollar index 95.28, -0.04.
10-yr T Note yield 1.67%.
S&P futures higher ahead of the economic data.
Mortgage Bonds open near unchanged ahead of a plethora of economic data which includes Weekly Initial Jobless Claims, PPI, Retail Sales, Empire Manufacturing and the Philly Fed all at 8:30.