Thursday's Rates and News

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 

**Rate Assumptions

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

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.  

Contact

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

813 Shades Creek Parkway
Birmingham, Alabama 35209
 

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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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