Tuesday Rates and News

July 11th, 2017

Suggestion: Mortgage Bonds are trying to stabilize today after last week's volatility. Carefully floating is recommended.

For News that affect these rates drag all the way down the page.

Rates Effective July 11, 2017 11:30 AM EST

No origination on all posted rates.  Call for other rates

 

Conforming loans $424,100 and under

Fixed Rates

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.

  • Some products may not be available in all states.
  • Jumbo Rates (loans over $424,100) not be available to first time home buyers.
  • Lending services may not be available in all areas.
  • Some restrictions may apply.
  • Based on the purchase/refinance of a primary residence with no cash out at closing.
  • We assumed (unless otherwise noted) that: closing costs are paid out of pocket; this is your primary residence and is a single family home; debt-to-income ratio is less than 30%; and credit score is over 780; and an escrow account for the payment of taxes and insurance.
  • The lock period for your rate is 30 days.
  • The loan to value (LTV) ratio is 70%. If LTV > 80%, PMI will be added to your monthly mortgage payment for all conventional loans.
  • Rates assume a credit score of at least 780.
  • Please remember that we don’t have all your information. Therefore, the rate and payment results you see from this calculator may not reflect your actual situation. National Bank of Commerce offers a wide variety of loan options. You may still qualify for a loan even if your situation doesn’t match our assumptions. To get more accurate and personalized results, please call (205) 266-5669 to talk to John Marbury.
  • 30-Year Fixed-Rate Mortgage: The monthly payment on a $200,000 30-year Fixed-Rate Loan at 4.125% and 70% loan-to-value (LTV) is $969.30 with 0 points due at closing. The Annual Percentage Rate (APR) is 4.213%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply.
  • 15-Year Fixed-Rate Mortgage: The monthly payment on a $200,000 15-year Fixed-Rate Loan at 3.375% and 70% loan-to-value (LTV) is $1417.52 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.523%. Payment does not include taxes and insurance premiums. The actual payment amount will be greater. Some state and county maximum loan amount restrictions may apply

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:  MBS ended flat to slightly higher in today's session, while Stocks ended near unchanged in listless trading. There were no economic reports released today. The solid $34B 3-yr Note auction had little impact on trading. The Fannie Mae 30-yr 3.5% coupon closed at 102.62, +9bp and finished above resistance at the 100-day Moving Average (102.56). Stocks closed mixed driven by political news, which included concerns over emails disclosed by President Trump's eldest son citing support for his father's election campaigns. The Dow closed at 21,409.07, the S&P at 2,425.52, near unchanged. The NASDAQ gained 16.91 points to 6,193.30. WTI oil closed at $45.04/barrel, +$0.64. The 10-yr T Note yield 2.35%. Tomorrow Fed Chair Yellen's testimony in front of Congress begins at 10:00 a.m. ET. The Treasury will sell $20B 10-yr Notes. There are no economic reports due for release tomorrow.

Tue, Jul 11 4:15 PM The S&P 500 closes slightly lower, -1.90 points.
Tue, Jul 11 1:17 PM The $24B 3-yr Note auction garners a "B" rating.
Tue, Jul 11 12:59 PM At midday, MBS flat to slightly higher. Stocks mixed. 10-yr yield 2.25%. $24B 3-yr Note auction results imminent.
Tue, Jul 11 12:58 PM Fed's Brainard says balance sheet runoff soon, but rate hikes in doubt.
Tue, Jul 11 12:15 PM The Fannie Mae 30-yr 3.5% coupon continues to press up against resistance one (R1) at the 100-DMA (102.56).
Tue, Jul 11 12:09 PM Dow, S&P and NASDAQ quickly cut their losses. Now near unchanged.

Late morning Commentary:  Tight inventories of homes for sale continue to fuel higher home prices, reports CoreLogic. The CoreLogic Home Price Insights report showed that prices rose 6.6% from May 2016 to May 2017 and were up 1.2% from April to May. CoreLogic forecasts that home prices will rise by 5.3% from May 2017 to May 2018. "The market remained robust with home sales and prices continuing to increase steadily in May. While the market is consistently generating home price growth, sales activity is being hindered by a lack of inventories across many markets," says Frank Nothaft, Chief Economist at CoreLogic.

A recent report shows that FICO scores hit an all-time high average of 700 after recently bottoming out 686 during the housing crisis. FICO scores range from 300 to 850. A score of 700 is considered "very good credit", says a FICO spokesperson. However, FICO said that credit card balances and delinquencies are also edging higher and the company will be monitoring that situation carefully.

CoreLogic also reported today that mortgage delinquencies declined in April as the housing sector continues to improve. The analytics firm said that those 30 days or more past due including those in foreclosure, fell 4.8% of total mortgages in April, down from the 5.3% recorded in April 2016. “Most major indicators of mortgage performance improved in April, showing that the market continues to benefit from improved economic growth and home price increases,” CoreLogic Chief Economist Frank Nothaft said. 

Tue, Jul 11 11:30 AM Political woes from the Trump administration sends stocks lower after a report surfaces that Donald Trump Jr. had an email chain that set up meeting with Russian lawyer that would incriminate Hillary Clinton.
Tue, Jul 11 10:50 AM Average FICO score reaches 700 for the first time.
Tue, Jul 11 10:17 AM U.S. political gridlock weighs on small business confidence, reports the National Federation of Independent Businesses, saying today that its widely-watched index pulled back to 103.6 from 104.5 in June.
Tue, Jul 11 10:11 AM MBS continue to trade near unchanged. Dow, S&P slightly lower, NASDAQ sees a meager gain.
Tue, Jul 11 10:04 AM The Job Opening and Labor Turnover Survey (JOLTS) shows that at the end of May there were 5.66 million openings, down from 5.66 million in April.
Tue, Jul 11 9:33 AM Stocks trading near unchanged right after the opening bell on Wall Street.
Tue, Jul 11 9:04 AM The Monthly Bond Rollover will take place after the close of trading this evening.
Tue, Jul 11 9:00 AM Fed Fund Futures show a near zero percent chance of a hike to the fed Funds Rate at this months 2-day FOMC meeting on July 26-27.
Tue, Jul 11 8:43 AM CoreLogic reports that home prices nationwide rose 6.6% from May 2016 to May 2017, +1.2% from April 2017 to May 2017.
Tue, Jul 11 8:21 AM There are no economic reports due for release today.
Tue, Jul 11 8:18 AM The Treasury will sell $24B 3-yr Notes today, results at 1:00 p.m. ET.
Tue, Jul 11 8:17 AM 10-yr T Note yield 2.38%.
Tue, Jul 11 8:16 AM WTI oil at $44.02/barrel, -$0.38.
Tue, Jul 11 8:12 AM S&P futures near edging lower as investment banks cut oil price forecasts.
Tue, Jul 11 8:07 AM The benchmark 3.5% Fannie Mae 30 -yr coupon begins the session 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 subscribers of www.themortgagemarketguide.com  The cost of subscription is very reasonable.

Contact

John Marbury
jmarbury@nationalbankofcommerce.com
NMLS# 740833
Phone:205-266-5669
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209
 

Mission Statement

As a loan officer (mortgage broker 1989-2006) since 1985, I have seen a lot of changes over the years. The only consistency in the mortgage business and life is change. This is the reason that we believe it is necessary to move quickly and to be early. Let us know if you have any questions or if we can help in any way.

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