July 7th, 2017
After close suggestion: With the Jobs report out of the way hopefully the selloff will not continue. The German Bund going 0.22% to 0.58% in a couple of weeks is not helping much. With Volatility hopefully traders will start buying bonds again. Stay tuned in and see what happens next week.
Morning Suggestion: Strong job growth, stagnant wage growth and global yields pressure Bond markets. Float for now to see if momentum picks up.
For News that affect these rates drag all the way down the page.
Rates Effective July 7, 2017 11:40 AM EST
No origination on all posted rates. Call for other rates
Conforming loans $424,100 and under
30-Year Fixed 4.125% (4.213%APR)
15-Year Fixed 3.375% (3.523% APR)
Actual payments will vary based on your individual situation and current rates. The above rates are subject to change.
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.
After close Commentary: Mortgage Bond prices stabilized today after the June Jobs Report showed a stellar headline number for job creation balanced out by stagnant wage growth. The FNMA 30-year 3.5% coupon closed at 102.38, down -3 bps. All major Stock indexes got a bump, with the S&P gaining 15.43 to close at 2425.18, the Nasdaq up 63.61 to 6153.07, and the Dow up 94.30 to 21414.34. WTI Crude slipped again, sliding -1.19 to 44.33. Next week, wholesale and consumer inflation as well as Retail Sales will be the reports to watch.
|Fri, Jul 07 3:12 PM USD LIBOR 1-month 1.22%, 3-month 1.30%, 6-month 1.46%, 12-month 1.75%.|
|Fri, Jul 07 1:52 PM 10-yr German Bund yield at .57%.|
|Fri, Jul 07 12:37 PM U.S. dollar index 95.80 +0.22.|
|Fri, Jul 07 11:36 AM WTI oil at $44.30 down $1.22 for the day.|
|Fri, Jul 07 10:33 AM 10-yr T Note yield 2.38% up from yesterday's close of 2.36%.|
Late morning Commentary: June job growth soared with 222,000 new jobs, well above expectations, the Labor Department reported. April was revised up from 174,000 to 207,000, and May was revised up from 138,000 to 152,000. With these revisions, employment gains in April and May combined were 47,000 more than previously reported. The unemployment rate was little changed at 4.4 percent. Employment growth has averaged 180,000 per month in 2017, in line with the average monthly gain of 187,000 in 2016. Average hourly earnings have risen 2.5 percent in the last 12 months.
Slip, sliding away. That’s what can be said about both Brent and WTI oil prices this week. Despite the commitment of OPEC and non-OPEC nations to trim production by 1.8 million barrels a day and hopefully curb the global oil surplus, nary a dent has been made. Both Brent and WTI fell 3 percent today, to $46.68 and $44.14 respectively.
A chip off the old block? Samsung’s memory chip division is catapulting the tech giant to record high quarterly profits, according to recent estimates. While final earnings won’t be released until the end of July, Samsung estimates its second-quarter operating profit to be above $12 billion, well above analyst estimates. Revenue is also estimated at 18 percent above a year ago.
8:45 AM ET 3.5% Fannie Mae 30-yr coupon up 6 bp at a price of 102.47 up 3 bp when rates were set yesterday at 10:00 am et Open 102.34 High 102.50 Low 102.31
Numbers to watch for:
Currently Buying Opportunities for Traders
Currently Selling opportunities for Traders
$102.54 100 Day Moving average
$102.78 High of 5/16/17
102.90 50 day moving average
103.00 traders keep their eye on round numbers and this is one them with lots of zeros
Fri, Jul 07 8:38 AM Hourly Earnings 0.2% vs estimated 0.3%.
|Fri, Jul 07 8:37 AM Average Work Week up 0.1 to 34.5|
|Fri, Jul 07 8:33 AM US Nonfarm payrolls total 222K in June vs 179K expected.|
|Fri, Jul 07 8:33 AM Unemployment Rate 4.4% vs estimate 4.3%.|
|Fri, Jul 07 8:20 AM Economic reports to come out at 8:30.|
|Fri, Jul 07 8:12 AM S&P futures open slightly higher.|
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 subscribers of www.themortgagemarketguide.com The cost of subscription is very reasonable.