November Housing Starts Down 18.7%

December 16th, 2016

 

 

WRAP: Mortgage Bonds went on a roller coaster ride today, but ended near unchanged levels. The 3.5% Fannie Mae 30-yr coupon closed near unchanged at 101.09. Weak housing numbers somewhat supported Bond prices. Stocks closed lower as the rally took a pause. The Dow fell by 8.83 points to 19843.41, the S&P 500 lost 3.96 points to 2258.07, while the tech heavy Nasdaq was down by 19.69 points to end the volatile week at 5437.16. WTI oil closed at $52.03, +$1.13. 10-yr yield closed at 2.59%. Next week's economic calendar features GDP, housing numbers, consumer spending and attitudes and inflation data. Have a great weekend!

 

 

Today's Agenda

 

12/16/2016 8:30:00Housing StartsNov1225K 1.090K1323KModerate
 Building PermitsNov1236K 1.201K1229KModerate

 

 

What Is Going On With Interest Rates?  #wigowir

 

Below is the news when it happened and the market’s reaction.  For a full view of the day start at the bottom and work your way up. If want to know what just happened start at the top. All Times are Eastern Standard Time.  When the price of Mortgage Backed Securities (MBS) goes down rates go up, and when the price goes up rates come down. Remember in the bond market Bad News is Good News and Good News is Bad news.

 

 

 

2:14 PM Talk about volatility ... the 3.5% Fannie Mae 30-yr coupon opened at 101.19, fell to 100.88, hit 101.47 before the current price of 101.09.

2:11 PM The rally in MBS fizzles. Now near unchanged.

 

1:45 PM Fed's Lacker says need more than 3 rate hikes in 2017.

1:37 PM News that the China Navy seized a U.S. unmanned underwater drone drives investors to flight-to-quality assets such as Bonds. Stocks decline.

1:14 PM At midday, MBS higher, Stocks fall into negative territory. 10-yr yield 2.56%.

12:39 PM The 3.5% Fannie Mae 30-yr coupon able to rally and hit 101.47, but has since fallen back to 101.31 as the volatility continues.

12:13 PM MBS able to rally back, but be careful, the 3.5% 30-yr Fannie Mae coupon must able able to rise above 101.34 for us to see a positive in this volatile market.

11:30 AM Stocks fall into negative territory.

 

10:54 AM MBS at session lows.

10:45 AM MBS fall to session lows and into negative territory.

10:31 AM Stock gains accelerate.

9:33 AM Any advance in MBS seems to be met with sellers.

9:30 AM The S&P 500 opens higher.

8:44 AM S&P futures higher modestly higher.

8:38 AM U.S. dollar index 102.99, -0.05.

8:37 AM WTI oil $51.32/barrel, +$0.43.

8:35 AM November Building Permits -4.7% from October to an annual rate of 1.201 million vs 1.236 million expected. October revised higher to 1.260 million from 1.229 million.

8:30 AM November Housing Starts -18.7% from October to an annual rate of 1.090 million units vs the 1.225 million expected. October revised higher to 1.340 million from 1.323 million.

8:29 AM 10-yr T Note yield 2.57%.

8:18 AM MBS open higher as they continue to try to find a bottom.

 

Johnmarbury.com has attempted to verify the information contained on this post.  However any aspect of such may change without notice.  Johnmarbury.com does not provide investment advice and does not represent that any of the information or related analysis is accurate or complete at any time. On October 5th we started posting our rates and leaving them on the site for you to refer back to. This will allow  you see where actual rates have been along with the news that caused the fluctuations on the rate sheet.  I ask that you forgive my spelling and grammatical mistakes. This is due writing skills that are lacking and the need to communicate quickly.  Most of the information posted on this blog along with the charts and indexes are available all during the day to the subscrbers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

 

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