The day after the Fed Hike

March 16th, 2017

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.

 

12:27 PM Not much movement in MBS for the past few hours as they trade in a tight range.
11:34 AM Dow, S&P and NASDAQ push further into negative territory.
11:20 AM The Labor Department reported today that job openings rose more than expected to 5.626 million in January, above the 5.501 million in December in its JOLTS report (JOB Openings and Labor Turnover Survey).
11:05 AM The Fannie Mae 30-yr 3.5% coupon continues to trade just below resistance on (R1) at 101.62.
10:53 AM Dow, S&P and NASDAQ give up earlier gains, now near unchanged.
10:48 AM Freddie Mac reports that the 30-yr fixed conventional mortgage rate rose to 4.30% in the latest week with 0.5 in points and fees.
10:29 AM The S&P falls into negative territory

9:45 am 3.5% Fannie Mae 30-yr coupon down 7 bp at a price of 101.59 up 62  bp when rates were set yesterday at 10:00 am Open 101.50 High 101.59 Low 101.44

 

Chart below posted at 9:45 am

 

 

8:44 AM The Bank of England keeps its benchmark interest rate on hold at 0.25%, as expected; says modest withdrawal of stimulus over three years is appropriate.

 
8:40 AM S&P futures modestly higher up on the dovish rate hike outlook.
8:38 AM Not much reaction from the economic data in yields or Bond prices.
8:35 AM Weekly Initial Jobless Claims -2K to 241K, in line.
8:34 AM The March Philly Fed 32.8 vs the 25.0 expected and down from February's blowout number of 43.3.
8:33 AM Building Permits -6% to an annual rate of 1.213M vs 1.251M expected.
8:31 AM Housing Starts +3% in February from March to an annual rate of 1.288M vs 1.260M expected.
8:28 AM U.S. dollar index 100.35, -0.22.
8:28 AM Housing Starts, Building Permits, Weekly Initial Jobless Claims and the Philly Fed at 8:30.
8:25 AM WTI oil $49.22/barrel, +$0.35.
8:24 AM 10-yr yield 2.52% from yesterday's close of 2.50% and had been as high as 2.60% before the Fed statement was released.
8:17 AM Stocks also rallied on the headlines as uncertainty surrounding future rate hikes were laid to rest after the Fed signaled two more hikes in 2017.
8:15 AM The Fed raised its benchmark Fed Funds Rate by .25 to 0.875, while the accompanying statement was on the dovish side.
8:12 AM After yesterday's post-Fed rally, Bond prices edge lower. Mortgage Backed Securities open modestly lower.

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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