Wednesday's Rates & News

Wednesday's Rates & News

July 19th, 2017

Suggestion: After their recent run higher, Mortgage Bonds are near unchanged as they battle key technical resistance. Carefully floating is recommended.

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

Rates Effective July 19, 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 4.000% (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.

  • 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 4.000% and 70% loan-to-value (LTV) is $954.83 with 0 points due at closing. The Annual Percentage Rate (APR) is 4.087%. 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 3.250% and 70% loan-to-value (LTV) is $1405.34 with 0 points due at closing. The Annual Percentage Rate (APR) is 3.397%. 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: Not much movement in MBS today as players were on hold ahead of policy statements from the Bank of Japan and the European Central Bank. The strong Housing Starts number could have been a factor in keeping Bond prices near unchanged. The Fannie Mae 30-yr 3.5% coupon closed at 102.88, near unchanged. Stocks rose fueled by tech shares. The Dow gained 66.02 points to 21,640.75, the S&P 500 was up 13.22 points to 2,473.83, while the NASDAQ was higher by 40.73 points to end at 6,385.04. Both the NASDAQ and the S&P closed at fresh record highs. WTI oil closed at $47.12/barrel, +$0.72. 10-yr T Note yield 2.26%, unchanged. Tomorrow's economic data includes the Philly Fed Index and Weekly Initial Jobless Claims.

Wed, Jul 19 4:00 PM The S&P 500 (2,473) and the NASDAQ (6,385) close at record highs.
Wed, Jul 19 2:07 PM The Mortgage Bond market is open today, just little movement seen.
Wed, Jul 19 1:00 PM At midday, MBS near unchanged. Stocks modestly higher. 10-yr yield 2.26%.

Late morning Commentary:  The Commerce Department reported on Wednesday that Housing Starts in June surged 8.3% to an annual rate of 1.215 million units, the highest since February and after three straight monthly declines. Single-family starts, which represents the largest share of the residential housing market, rose 6.3%, while the multi-family dwelling sector soared by 13.3%. Housing Starts were up 2.1% from June 2016. Higher lumber prices and shortages of workers and land space could be potential hurdles to jump in the near future for new home building.

The Mortgage Bankers Association (MBA) released its weekly mortgage report showing that mortgage application volumes rose in its latest survey. The MBA's Market Composite Index, a measure of total mortgage loan application volume, rose 6.3% in the latest week. The refinance index jumped 13%, while the purchase index was up 1%. In addition, the 30-year fixed conforming mortgage rate was unchanged at 4.22%. Jumbo 30-year rates climbed to 4.19% from 4.18%, while the FHA rate fell to 4.10% from 4.12%. Those rates usually carry at least a 0.30 point added on top.

Cost cutting continues at one of the nation's largest banks in the form of branch closures as on line banking ramps up. Wells Fargo recently reported that it will close 450 branches across the nation. The bank said it will close 200 branches in 2017 and 250 in 2018 and has vowed to cut annual costs by $2 billion by the end of 2019. In this digital age, on line and mobile banking has moved to the forefront and will most likely grow even larger in the years to come. 

Wed, Jul 19 11:10 AM MBS trade in an extremely tight range near unchanged. Stocks also trade in a slim range, holding slight gains. Shares of Amazon hit an intraday all-time high of $1,030.

Wednesday 10:19 AM ET  3.5% Fannie Mae 30-yr coupon up 0 bp at a price of 102.91  down 3 bp when rates were set yesterday at 10:00 am et Open 102.84 High 102.97 Low 102.84

Numbers to watch for:

Currently Buying Opportunities for Traders

$102.58 100 Day Moving average

Currently Selling opportunities for Traders

$102.78 High of 5/16/17

102.85 200 day moving average

102.89 50 day moving average

102.90 25 day moving

103.00  traders keep their eye on round numbers and this is one them with lots of zeros   

Wed, Jul 19 10:03 AM The Dow, S&P and NASDAQ push into positive territory.
Wed, Jul 19 9:49 AM IBM posted its 21st straight revenue decline for the Dow component, which was a bellwether Stock for many years.
Wed, Jul 19 9:48 AM WTI oil $46.64/barrel, +$0.24 as strong gasoline demand is somewhat offset by high OPEC supply.
Wed, Jul 19 9:34 AM Stocks barely trade in positive territory soon after the opening bell.
Wed, Jul 19 9:25 AM The New York Fed will purchase up $1.575B in 30-yr Fannie/Freddie 3.5% and 4% coupons beginning this morning at 11:15 a.m. ET.
Wed, Jul 19 8:44 AM Single-family Housing Starts rose 6.3% in June from May to an annual rate of 849,000, while multi-dwellings jumped 13.3%.
Wed, Jul 19 8:43 AM The strong housing data has little impact on Bond prices and yields.
Wed, Jul 19 8:31 AM June Housing Starts +8% from May to an annual rate of 1.215M, above the 1.160M expected.
Wed, Jul 19 8:31 AM June Building Permits +7.5% from May to an annual rate of 1.254M vs the 1.196M expected.
Wed, Jul 19 8:28 AM 10-yr yield 2.27% from 2.26% yesterday.
Wed, Jul 19 8:28 AM  U.S. dollar index 94.51, +0.10
Wed, Jul 19 8:26 AM Jumbo 30-yr rates 4.19% from 4.18%, FHA 4.10% from 4.12%. Those rates usually carry at least a 0.30 point on top of the rate.
Wed, Jul 19 8:25 AM The 30-yr fixed conforming mortgage rate was unchanged at 4.22%.
Wed, Jul 19 8:23 AM The MBAs refinance index jumped 13%, purchase index 1%.
Wed, Jul 19 8:22 AM The MBA reports that its Market Composite Index, a measure of total mortgage application volume, rose 6.3% in the latest week.
Wed, Jul 19 8:21 AM June Housing Starts and Building Permits will be released at 8:30.
Wed, Jul 19 8:19 AM The benchmark Mortgage Bond, 102.88, is up from the 102.28 low seen on July 7.
Wed, Jul 19 8:16 AM MBS open near unchanged as the benchmark Fannie Mae 30-year coupon trades near resistance two (R2) supplied by the 50- and 200-day Moving Averages.

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
Mortgage Lender NMLS# 514390
NMLS# 740833
Phone:205-266-5669
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209
 

Mission Statement

To be the simplest and most informative mortgage website on the market today. To make the mortgage process as easy as possible, by informing and educating the consumer on what to expect and how much it is going to cost.

Sign Up Now!