September 22nd, 2016
What Is Going On With Interest Rates? #wigowir
MBS closed higher and tighter, despite the extension of the post-Fed Treasury rally, as buyers seized 30-yr 3s in particular, as the basis continued to benefit from the supportive backdrop following Wednesday's FOMC decision. MBS were able to close with gains, despite the rally in the Stock market. Mortgage Bonds closed near the session highs as traders digested Wednesday's monetary policy decisions from the Fed and the BOJ. Slightly weaker August Existing Home Sales and Fed buying helped to support higher Bond prices. The 3% Fannie Mae 30-yr coupon rose 28bp to end at 103.88, above resistance at the 25- and 50-day Moving Averages. Stocks rallied post-Fed and as tech stocks led the charge. The Nasdaq closed at a fresh record high of 5,339.52, +44.34 points. The Dow gained 98.76 points to 18,392.46 while the S&P was up 14.06 points to 2,177.18. WTI oil closed at $46.32/barrel, +$0.98. The 10-yr T Note fell to 1.62%. There are no economic reports due for release tomorrow.
4:09 PM - Nasdaq closes at a record high of 5,339.52, +44 points.
3:32 PM - Stocks build on Fed-fueled rally; Nasdaq hits new high, 5,341.
2:21 PM - Stocks off session highs as are Mortgage Bond prices.
12:35 PM - Nearing midday, MBS holding solid gains, S&P 500 Index higher. WTI oil +$1.07 to $46.40/barrel. 10-yr T Note yield falls to 1.61%.
Chart was posted at 11:27 am.
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.
3% MBS price $103.84 up 25 basis points from Wednesday’s close. As you can see on the chart we have broken through the 25 and 50 moving averages. This is the reason that we are able to quote the new and improved rates below.
Below is the news when it happened and the market’s reaction. All Times are Eastern Standard Time.
10:59 AM - Mortgage Bonds holding gains at the session highs.
10:34 AM - The FHFA reports that home prices rose 0.5% in July from June, +5.8% from July 2015 to July 2016.
10:26 AM - Freddie Mac reports that the 30-yr fixed conventional mortgage rate ($417K or less), edged lower to 3.48% from 3.50% this week with 0.6 in points and fees.
10:02 AM - August Existing Home Sales -0.9% from July to an annual rate of 5.33 million units. The decline can be somewhat attributed to low inventories of existing homes.
10:01 AM - The New York Fed will be purchasing up to $2.55B in Fannie/Freddie 30-yr 3s and 3.5 beginning at 11:15 a.m. ET.
9:18 AM New Rates have been posted
30-Year Fixed 3.375% (3.457% APR) No Origination Fee
For more rates and details click: http://www.johnmarbury.com/page5.html/
Feel free to call (205-266-5669) or email (email@example.com) John for a quote based on the terms of your loan.
9:32 AM - Stocks higher at the open, Dow +115 points.
9:05 AM - Home inventory fell for the fifth straight quarter in July, nearing record lows, according to the most recent report by Trulia.
8:31 AM - Weekly Initial Jobless Claims decline by 8K to 252K, below the 262K expected.
8:21 AM - August Existing Home Sales will be released at 10:00 a.m. ET.
8:16 AM - The U.S. dollar index edges lower to 95.11, -0.55.
8:15 AM - WTI oil at $46.10/barrel, +$0.77.
8:09 AM - The 10-yr T Note yield at 1.65% from yesterday's intraday high of 1.73%.
8:06 AM - After yesterday's decent rally, MBS open near unchanged as the Fannie Mae 3% 30-yr coupon trades at resistance supplied by the 25- and 50-day Moving Averages.
7:55 AM - The vote was 7-3 with the three dissenters wanting to edge the Fed Funds Rate higher by a quarter percentage.
7:52 AM - Post Fed announcement S&P futures higher as the short-term Fed Funds Rate remained in the 0.25-0.50 range.