September 16th, 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. . All times are Eastern Standard.
A slight improvement over the last 4 days. Not a whole lot of movement in the MBS market for most of the session, aside from some early morning volatility. The hotter-than-expected August CPI data held prices near the flatline today. The 3% Fannie Mae 30-yr coupon closed at 103.50, +9bp. The Red line is the 100 day moving average that appears to be a buy signal to traders at this time.
Stocks ended lower after the Deutsche Bank debacle, which pulled U.S. bank shares lower and spread to the broader market. The Dow lost 88.68 points to 18,123.80, the S&P lost 8.10 points to 2,139.16 while the tech heavy Nasdaq fell by 5.11 points to end at 5,244.56. WTI oil was last seen at $43.20/barrel, -$0.71. 10-yr T Note yield 1.68%. Next week's economic calendar highlights the housing sector but will take a backseat to the 2-day Fed meeting which kicks off on Tuesday and will end Wednesday with the 2:00 p.m. ET release of the Fed statement. Fed Chair Yellen will have a press conference at at 2:30 after the statement is released. Have a great weekend!
9:38 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.
2:49 PM - MBS slowly edge higher as the quiet afternoon session continues.
1:35 PM - MBS holding firm, quiet trade eyed into the close.
12:05 PM - MBS trade in a tight range near unchanged.
10:37 AM - September Consumer Sentiment edges 89.8, below the 91.5 expected.
10:28 AM - MBS now at session lows.
9:32 AM - Stocks open lower, Dow -100 points.
8:35 AM - The hotter than expected CPI knocks MBS off their highs.
August CPI 0.2% vs the 0.1% expected. Core CPI 0.3% vs 0.2% expected.
Year-over-year Core CPI 2.3%, CPI 1.1%.
8:27 AM - Stock futures also being weighed down by lower oil prices. WTI $43.18/barrel, -$0.73.
S&P futures lower in sympathy with lower shares across pond.
The claims against Deutsche Bank come for the years between 2005 and 2007.
European Stocks decline after Deutsche Bank was threatened with a $14B fine over sales of mortgage backed securities. The bank said it has no intention to settle the potential civil claims anywhere near that figure.
MBS open modestly higher ahead of August CPI, which is set to be released at 8:30. Consumer Sentiment at 10.