July 27th, 2017
Suggestion: Mortgage Bond prices are flat to lower a day after the Fed sparked a rally with a dovish monetary policy statement. Carefully floating is our suggestion..
For News that affect these rates drag all the way down the page.
Rates Effective July 27, 2017 10:28 AM EST
No origination on all posted rates. Call for other rates. **Rate Assumptions below the news
Conforming loans $424,100 and under
30-Year Fixed Rate 4.000% (4.087%APR)
15-Year Fixed Rate 3.250% (3.397% APR)
After close Commentary: MBS traded near unchanged levels for most of the session ending near unchanged with this morning's economic data having little impact on the markets. The Fannie Mae 30-yr 3.5% coupon closed near unchanged at 102.84. Stocks ended mixed with NASDAQ closing lower weighed down as investors took profits in tech Stocks. The Dow gained 85.54 points to 21,796.55, an all-time closing high. The S&P fell by 2.41 points to 2,475.42, while the NASDAQ was down 40.56 points to end the session at 6,382.18. WTI oil rose $0.29 to $49.04/barrel. 10-yr yield 2.31%. The markets are awaiting tomorrow's release of the first read on Q2 GDP. The inflation reading Employment Cost Index and Consumer Sentiment will be released tomorrow.
Late morning Commentary: Mortgage rates edged lower this week, declining for the second straight week. The lower rates came after the Fed left its benchmark interest rate on hold. The news on rate sparked a rally in both the Stock and Bond markets, while yields pushed lower. Freddie Mac reported that the 30-year fixed rate mortgage fell to 3.92% from 3.96% with 0.5 in points and fees. Last year this time the rate was 3.42%.
The Fed left the Fed Funds Rate on hold yesterday and said that it will begin unwinding its balance sheet "relatively soon" provided the economy evolves broadly as anticipated. Low inflation levels could throw some doubt in Fed assumptions that the unwinding of its balance sheet will begin in September with a December rate hike.The Core PCE, the Fed’s favorite gauge of inflation is not just under 2%, but it has been steadily declining. It was 1.8% in January and fell to 1.4% in June. Low inflation will keep the Fed on hold with rates and could push back any thoughts of unwinding its balance sheet.
Stocks are higher once again as the Dow, NASDAQ and S&P trade at record highs. After the bell, Amazon will report earnings; this comes after blowout earnings from social media giant Facebook after the close yesterday. Today is the busiest day of the season for earnings. Of the companies in the S&P 500 that have reported their numbers, 78% have beat on earnings.
Thursday 8:58 AM ET 3.5% Fannie Mae 30-yr coupon down 7 bp at a price of 102.81 up 16 bp when rates were set yesterday at 10:00 am et Open 102.81 High 102.84 Low 102.81
Numbers that traders watch:
$102.63 100 Day Moving avg / $102.78 High of 5/16/17 /102.78 200 day moving avg
$102.79 25 day moving/ 102.96 50 day moving avg / 103.00 A round numbers
Actual payments will vary based on your individual situation and current rates. The above rates are subject to change.
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. Forgive my spelling and grammatical mistakes due to writing skills that are lacking and the need to communicate quickly.