Mortgage Rates, Employment Costs & Consumer Sentiment

July 28th, 2017

Currennt Suggestion Subject to change:  Bonds are moving in a positive direction thanks to a lower stock market. Let's float for now.

Rates Effective July 28, 2017 10:46 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 higher for the session aided in part by mixed Stock prices, a lower Employment Cost Index and Consumer Sentiment Index falling in July from June. The Bond gained 16bp to end at 102.94. The Dow closed at a record high of 21,830.31, +33.76 points. The S&P fell 3.32 points to 2,472.10, while the NASDAQ lost 7.50 points to end the week at 6,374.67. WTI oil had its best week of the year up 8.6% for the week ending at $49.71/barrel, +$0.67. 10-yr T Note yield 2.29%. Next week's economic data sees numbers on manufacturing, inflation, and employment numbers from the July Jobs report. Have a great weekend!

Late morning Commentary:  The first reading on 2017 Q2 Gross Domestic Product (GDP) rose 2.6% from 1.2% in Q1 bolstered by a 2.8% increase in consumer spending and a 0.7% rise in government spending. The first quarter was revised lower to 1.2% from 1.4%. In addition, investment in new housing declined 6.8%. GDP is the monetary value of all the finished goods and services produced within a country's borders in a specific time period.

The inflation-reading Employment Cost Index rose 0.5% in Q2, from 0.6% in Q1, and measures workers' wages and benefits. From a year earlier, total compensation rose 2.4%, while wages were up 2.3% from a year ago. The lack of wage growth continues to be a tailwind for low interest rates. If wages don't grow, inflation typically remains stagnant, which has been the case for quite some time.

AATOM Data Solutions reported this week profits for home sellers hit their highest point in a decade, due to a continued rise in home prices. In the second quarter of 2017, homeowners who sold their homes saw an average gain of $51,000, the highest since the second quarter of 2007 when owners saw gains of $57,000. The $51,000 was an increase of 26, the highest return average since the third quarter of 2007's 27%.

10:44 AM ET  3.5% Fannie Mae 30-yr coupon down 9 bp at a price of 102.88  up 3 bp when rates were set today at 10:00 am et Open 102.75 High 102.88 Low 102.72

Dailey Moving averages we are currently above: 100  $102.64 200  $102.77    25 102.77  and below 50 102.95   Others numbers to watch High of 5/16/17 $102.78  

**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 has attempted to verify the information contained on this post.  However any aspect of such may change without notice. 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.  


John Marbury
Mortgage Lender NMLS# 514390
NMLS# 740833
Fax: 866-217-4174

813 Shades Creek Parkway
Birmingham, Alabama 35209

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