Friday's Rates & News

July 21st, 2017

Suggestion: Mortgage Bond prices continue to hover just above key technical levels. Carefully floating is recommended.

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

Rates Effective July 21, 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 action again today in MBS market as prices traded in a narrow range in the absence of any economic data or geopolitical headlines. The Fannie Mae 30-yr 3.5% coupon closed at 103.03, +9bp. Stocks closed modestly lower as shares of GE weighed. The Dow lost 32.19 points to 21,579.73, the S&P was near unchanged at 2,472.50, while the NASDAQ lost a meager 2.24 points to end the week at 6,387.75. WTI oil ended lower by $1.15 to $45.77/barrel. 10-yr yield 2.23%. Next week's economic calendar includes housing data, consumer attitudes and GDP. The 2-day FOMC meeting kicks off on Tuesday and will end Wednesday with the 2:00 p.m. ET release of the monetary policy statement. Have a great weekend!

Fri, Jul 21 3:09 PM ET

There is near a zero percent chance of a hike to the Fed Funds Rate at next week's FOMC meeting, but the Fed may signal when its balance sheet will begin to unwind. The 2-day FOMC meeting kicks off this Tuesday and ends Wednesday with the monetary policy statement will be released at 2:00 p.m. ET.

Fri, Jul 21 - 12:39 PM ET Approaching midday, MBS holding slim gains, Stocks lower, off worst levels. 10-yr yield 2.23%.

 

Late Morning Commentary:  Ellie Mae reported its June Origination Insight Report this week revealing that the percentage of purchase home loans relative to refinances remained steady at 68% of all closed loans. The percentage of refinances remained at 32% for the second straight month. The report went on to say that the average time to close all loans increased one day to 43 days in June. The time to close a refinance held at 41 days, while the time to close a purchase increased to 43 days.

Motor club AAA reports that that gas prices could rise by $0.10 this summer and could top this year's highest national price of $2.42. Currently, the national average price for a regular gallon of gas is at $2.28. AAA said the anticipated volatility is due to refiners continuing to run record levels of crude oil, which is creating high levels of gasoline and diesel. In addition, the summer season’s strong demand is expected to stay on pace and may even set a new record high between now and Labor Day.

The major Stock indexes are lower to end the week but remain near all-time high levels fueled in part by technology stocks. The closely watched S&P 500 closed at 2,473.45 on Thursday, an all-time high closing record. Back in March 2009, the S&P hit a low of 666 before at the height of the Great Recession. Shares of Amazon hit a record high of $1,034 this week as the on line retailer looks to take over the retailing sector and many other sectors in between. 

 

Friday 10:52 AM ET  3.5% Fannie Mae 30-yr coupon up 3 bp at a price of 102.97  down -3 bp when rates were set today at 10:00 am et Open 102.94 High 103.03 Low 102.94

Numbers to watch for:

Currently Buying Opportunities for Traders

$102.59 100 Day Moving average

$102.78 High of 5/16/17

102.83 25 day moving

102.83 200 day moving average

102.93 50 day moving average

Currently Selling opportunities for Traders

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

103.12  Traders keep their eye numbers that have been resistance or support in the past.  This is one of them.

Fri, Jul 21 10:06 AM Dow -90 points.
Fri, Jul 21 9:14 AM Ellie Mae reports the share of purchase originations remain at record highs.
Fri, Jul 21 8:26 AM The New York Fed will purchase up to $1.575B 30-yr Fannie/Freddie 3.5% and 4% coupons beginning at 11:15 a.m. ET.
Fri, Jul 21 8:22 AM There are no economic reports due for release today.
Fri, Jul 21 8:19 AM The Fannie Mae 30-yr 3.5% coupon (102.97) trades just above resistance two (R2) at the 50-day Moving Average (102.93).
Fri, Jul 21 8:17 AM U.S. dollar index 93.97, -0.14.
Fri, Jul 21 8:16 AM WTI oil $46.54/barrel, -$0.36.
Fri, Jul 21 8:15 AM Microsoft, GE and Honeywell report strong quarterly earnings.
Fri, Jul 21 8:14 AM S&P futures near unchanged.
Fri, Jul 21 8:12 AM MBS open near unchanged as the summer doldrums set in for a quiet Friday trading session.

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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