July 13th, 2017
Suggestion: Mortgage Bond prices are near unchanged supported by Fed Chair Yellen's dovish stance on interest rate policy. Carefully floating is recommended.
For News that affect these rates drag all the way down the page.
Rates Effective July 13, 2017 11:30 AM EST
No origination on all posted rates. Call for other rates
Conforming loans $424,100 and under
30-Year Fixed 4.000% (4.087%APR)
15-Year Fixed 3.25% (3.397% 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: MBS traded in a tight range for most of the session and couldn't produce gains after a hawkish tone from ECB Chief Draghi. Inflation at the wholesale level was tame, while Weekly Initial Jobless Claims hover near lows seen in the early 1970s. The Bond closed at 102.59, -6bp. Stocks had some minor gains led by financials. The Dow closed at a record high of 21,553.09, up 20.95 points, the NASDAQ gained 13.26 points to 6,274.43, while the S&P finished at 2,447.83, +4.58 points. WTI oil was last seen at $46.11, +$0.60. 10-yr yield edged higher to 2.34%. Tomorrow's data includes Retail Sales, CPI and Consumer Sentiment.
|Thu, Jul 13 4:00 PM The Dow closes at another record high of 21,556.|
|Thu, Jul 13 3:01 PM Tomorrow morning, Citigroup, JPMorgan Chase, PNC and Wells Fargo will release quarterly earnings.|
|Thu, Jul 13 1:23 PM The $12B 30-yr Bond offering garners a "C+" rating.|
|Thu, Jul 13 1:09 PM Dallas Fed President Kaplan (voter) says at present, with a Federal Funds Rate at a range of 100 to 125 basis points, I would like to see some greater evidence that we are making progress toward meeting our 2% inflation objective in the medium term.|
|Thu, Jul 13 1:04 PM The ECB may announce a taper of asset purchases at the September meeting.|
|Thu, Jul 13 12:40 PM The results from today's $12B 30-yr Bond auction will be released at 1:00 p.m. ET.|
|Thu, Jul 13 11:30 AM S&P edges back into positive territory. MBS near session lows|
Late morning Commentary: Inflation at the wholesale level was tame in June as an increase in the cost of services was offset by a decrease in energy prices during the month. The Producer Price Index (PPI) rose 0.1% versus the -0.1% expected, while the Core PPI was up 0.1%, just above the 0.2%expected. Year-over-year PPI fell to 2% from 2.4% in May, while the Core also fell to 2% from 2.1%. A low inflation environment continues to hold interest rates at low levels.
Freddie Mac reports that the 30-year fixed mortgage rate rose to 4.03% this week as Bond prices declined and yields pushed higher after last week's positive June Jobs Report. The rate is up from 3.96% in the previous week and up from 3.42% last year this time. And though rates have edged higher, they are low by historical standards.
Freddie Mac makes homeownership and rental housing more accessible and affordable. Operating in the secondary mortgage market, it keeps mortgage capital flowing by purchasing mortgage loans from lenders so they in turn can provide more loans to qualified borrowers. Freddie Mac's mission is to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extends to all communities from coast to coast.
|Thu, Jul 13 10:28 AM Inflation risks are two-sided says Yellen.|
|Thu, Jul 13 10:27 AM Yellen - financial system has strengthened.|
|Thu, Jul 13 10:23 AM Stocks trade to unchanged having given up some gains.|
|Thu, Jul 13 10:21 AM Fed Chair Yellen reiterates that gradual rate hike path seems prudent - focused on bringing inflation up to 2% target.|
|Thu, Jul 13 10:09 AM Freddie Mac makes homeownership and rental housing more accessible and affordable. Operating in the secondary mortgage market, it keeps mortgage capital flowing by purchasing mortgage loans from lenders so they in turn can provide more loans to qualified borrowers. Freddie Mac's mission is to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extends to all communities from coast to coast.|
|Thu, Jul 13 10:06 AM Freddie Mac reports that the 30-yr fixed mortgage rate rose to 4.03% this week with 0.5 in points, up from 3.96% last week. A year ago the rate was 3.42%.|
|Thu, Jul 13 9:45 AM Fannie Mae lowers its benchmark interest rate for standard mortgage modifications from 4.125% to 4%.|
|Thu, Jul 13 9:33 AM Stocks open modestly higher.|
Thurs 9:17 AM ET 3.5% Fannie Mae 30-yr coupon down 3 bp at a price of 102.62 up 0bp when rates were set yesterday at 10:00 am et Open 102.62 High 102.62 Low 102.44
Numbers to watch for:
Currently Buying Opportunities for Traders
$102.56 100 Day Moving average
Currently Selling opportunities for Traders
$102.78 High of 5/16/17
102.89 50 day moving average
102.89 25 day moving average
102.91 200 day moving average
|Thu, Jul 13 9:11 AM The New York Fed will purchase up to $1.625B in 30-yr Fannie/Freddie 3% and 3.5% coupons beginning at 9:45 a.m. ET.|
|Thu, Jul 13 8:51 AM June year-over-year PPI 2%, down from 2.4% in May. Core also 2% from 2.1% in May.|
|Thu, Jul 13 8:32 AM June PPI 0.1%, -0.1% expected. Core PPI 0.1%, 0.2% expected.|
|Thu, Jul 13 8:31 AM Weekly Initial Jobless Claims -3K to 247K vs 345K expected.|
|Thu, Jul 13 8:21 AM WTI oil at $45.43/barrel, -0.07.|
|Thu, Jul 13 8:21 AM U.S. dollar index 95.50, unchanged.|
|Thu, Jul 13 8:20 AM Data out this morning, PPI, Weekly Initial Jobless Claims at 8:30.|
|Thu, Jul 13 8:19 AM The Treasury will complete this week's offerings as they peddle $12B 30-yr Bonds, results at 1:00 p.m. ET.|
|Thu, Jul 13 8:18 AM 10-yr yield edges slightly higher to 2.33% from yesterday's close of 2.32%.|
|Thu, Jul 13 8:14 AM Ms. Yellen will be back on Capitol Hill this morning at 10:00 a.m. ET in front of the Senate Banking Committee, but we don't see any big market moving headlines today.|
|Thu, Jul 13 8:09 AM MBS open near unchaned a day after Fed Chair Yellen spoke in a not-so-hawkish tone.|
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.