Health Care Vote

March 24th, 2017

Commentary at the close:  MBS were able to edge out modest gains before the healthcare vote was pulled, but closed near unchanged to end the week as the vote now looks to be postponed until next week. The 3.5% Fannie Mae 30-yr coupon closed at 102.03, unchanged. Stocks closed mixed. The NASDAQ gained 11.04 points to 5,828.73, the Dow lost 59.86 points to 20,596.72, while the closely watched S&P 500 saw a minor loss of 1.98 points to end the week at 2,343.98. WTI oil was last seen at $48.13/barrel, +$0.42 after closing lower in regular trading hours. 10-yr yield 2.41%. Next week's economic calendar is chockful of reports on inflation, manufacturing and economic growth. Have a great weekend!

 

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.

Commentary at the close:  MBS were able to edge out modest gains before the healthcare vote was pulled, but closed near unchanged to end the week as the vote now looks to be postponed until next week. The 3.5% Fannie Mae 30-yr coupon closed at 102.03, unchanged. Stocks closed mixed. The NASDAQ gained 11.04 points to 5,828.73, the Dow lost 59.86 points to 20,596.72, while the closely watched S&P 500 saw a minor loss of 1.98 points to end the week at 2,343.98. WTI oil was last seen at $48.13/barrel, +$0.42 after closing lower in regular trading hours. 10-yr yield 2.41%. Next week's economic calendar is chockful of reports on inflation, manufacturing and economic growth. Have a great weekend!

4:06 PM The S&P closes slightly lower after healthcare reform vote was pulled.

3:40 PM Stocks cutting losses after the healthcare reform vote was pulled.

3:36 PM Healthcare reform vote has been postponed once again

3:24 PM the healthcare bill vote could come in the next 15 minutes.

2:31 PM Bloomberg reports that GOP leaders not confident they have votes to pass healthcare bill.

1:39 PM Past midday, MBS flat to slightly higher, Stocks mixed. 10-yr yield 2.40%.

12:12 PM The Dow slips into negative territory.

11:26 AM New York Fed President Dudley (FOMC voter) says we're pretty close to both Fed objectives; may have inflation problem if UE gets much lower; U.S. economy in a "pretty good place right now."
11:24 AM San Francisco Fed President Williams (non-FOMC voter) sees three or four rate hikes in 2017.

One man's opinion (Art Cashin) on market reaction to the Health-Care Vote. Click the following link to find out:http://www.cnbc.com/2017/03/23/art-cashin-heres-how-the-markets-will-react-to-the-health-care-vote.html

 9:33 AM Stocks open modestly higher ahead of the House vote on the new health care bill.
9:18 AM MBS trade near unchanged ahead of the New York Fed as it gets set to purchase up to $1.15B in Fannie/Freddie 30-yr 3.5% and 4.0% coupons.
9:17 AM The MBA reported this week that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424K or less) remained unchanged at 4.46%, with 0.41 in points.
8:53 AM Freddie Mac reported yesterday that the 30-yr fixed rate conventional mortgage declined to 4.23% this week from 4.30% in the previous week with 0.5 in points and fees.
8:31 AM February Durable Orders rise 1.7% vs 1.3% expected.
8:19 AM Fed's Kaplan says he would advocate for letting both MBS and treasuries to run off the Fed's balance sheet.
8:17 AM WTI oil $48.02/barrel, +$0.32.
8:16 AM 10-yr T Note yield 2.41%.
8:11 AM The U.S. House of Representatives is set to vote on the American Health Care Act (AHCA) today.
8:08 AM After yesterday's Alert To Lock, MBS open near unchanged.
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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