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
Actual payments will vary based on your individual situation and current rates. The above rates are subject to change.
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