Tuesday

March 14th, 2017

Commentary at the close: MBS edged higher today, but the gains were modest ahead of this week's big hurdle in tomorrow's Fed statement release, which is due out at 2:00 p.m. ET. Today's PPI was hotter-than-expected, but MBS squeaked out gains anyway. The Fannie Mae 30-yr coupon 3.5% closed at 100.28, +12bp. Stocks ended lower as falling oil prices led energy stocks lower, which spilled over into the broader markets. The Dow lost 44.11 points to 20,837.37, the S&P 500 was down 8.02 points to 2,365.45, while the NASDAQ fell by 18.96 points to end at 5,856.81. WTI oil closed at $47.72, -$0.68. 10-yr yield 2.60%. Tomorrow's economic data includes CPI, Retail Sales, Empire Manufacturing and the NAHB Housing Market Index. But they will take a backseat to the 2:00 p.m. ET release of the Fed's monetary policy statement.

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.

4:00 PM Stocks close lower, but the losses are modest.

4:00 PM Dow -44 points.

3:41 PM MBS holding gains in quiet trading. S&P lower.

12:39 PM Gallup: optimism among small-business owners soars.

12:35 PM Stocks lower as oil prices continue to decline while energy Stocks pull down the broader market. Fed eyed.

11:50 AM MBS holding gains. Stocks trying to cut some losses.

10:14 AM The MBAs Builder Application Survey surges 16% in February after a 22% gain in January. The MBA said "strong employment numbers to begin 2017 suggests that demand for new homes should continue to grow."

11:50 AM MBS holding gains. Stocks trying to cut some losses.

10:14 AM The MBAs Builder Application Survey surges 16% in February after a 22% gain in January. The MBA said "strong employment numbers to begin 2017 suggests that demand for new homes should continue to grow."

9:52 AM Stocks open lower.

8:39 AM The hotter-than-expected wholesale inflation reading PPI has little impact on the Bond markets.

8:38 AM Year-over-year February PPI +2.2%, highest since March 2012.

8:33 AM February PPI 0.3% vs 0.1%, Core PPI +0.3% vs 0.2% expected.

8:25 AM WTI oil $47.72/barrel, -$0.67.

8:22 AM The February Producer Price Index will be released at 8:30.

8:20 AM U.S. dollar index 101.49, +0.30.

8:14 AM The Fed's monetary policy statement will be released at 2:00 p.m. ET tomorrow. There will be no news out of the meeting today.

8:13 AM S&P futures lower as the two-day Fed meeting kicks off later this morning on Capitol Hill where it is expected that the short-term Fed Funds Rate will rise by 25bp.

8:10 AM MBS open near unchanged after some mixed economic data from overseas.

8:10 AM 10-yr T Note yield 2.61%, near unchanged and at the upper end of the recent trading range.

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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