August 1st, 2017
Suggestions that can change during the day: Tame inflation lifts Mortgage Bond prices above key technical levels. Carefully floating is recommended.
Rates Effective August 1, 2017 10:56 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: After some early morning selling, MBS jumped today on tame inflation data (Core PCE) and a mixed June Personal Income & Spending report. The benchmark 3.5% Fannie Mae 30-yr coupon rose by 19bp to end the session at 103.12 and above all of the moving averages below. Stocks rose on strong earnings. The Dow closed at yet another record high of 21,963.92, +72.80 points. The S&P closed at 2,476.35 up 6.05 points, while the tech heavy NASDAQ gained was up 14.81 to 6,362.93. WTI oil closed at $49.16, -$1.01. 10-yr T Note yield fell to 2.25%. July ADP Private Payrolls will be released tomorrow morning.
Late morning Commentary: Data analytics firm CoreLogic reported on Tuesday that home prices, including distressed sales, rose 6.7% from June 2016 to June 2017 due in part to the continued theme: limited homes for sale on the market. On a monthly basis, prices were up 1.1%. “Home prices are marching ever higher – up almost 50% since the trough in March 2011," said Frank Martell, president and CEO of CoreLogic. "With no end in sight, affordability is rapidly deteriorating nationally and especially in some key areas such as Denver, Houston, Miami and Washington.”
Inflation remained tame in June; the low levels could keep the Federal Reserve from raising the short-term Fed Funds Rate anytime soon. The Fed's favorite inflation gauge, the Core Personal Consumption Expenditure, rose 1.5% annually in June, which is below the Fed's target range of 2%. The report also showed that Personal Incomes were unchanged during the month, while Personal Spending was up 0.1%, matching expectations.
Construction spending across the nation declined in June due in part to a decrease in investments in public projects, reports the Commerce Department. Construction spending fell 1.3% in June to $1.21 billion, the lowest number since September 2016. Investments in public construction projects declined 5.4% during June, the biggest decline since March 2002. In addition, private construction projects fell 0.1%, while private residential construction fell 0.2%.
9:17 AM ET 3.5% Fannie Mae 30-yr coupon down 6 bp at a price of 102.88 up 3 bp when rates were set today at 10:00 am et Open 102.88 High 102.88 Low 102.84
Dailey Moving averages we are currently above: 100 $102.67 200 $102.75 25 102.74 and below 50 102.95 Others numbers to watch High of 5/16/17 $102.78
|Tue, Aug 01 8:47 AM The year-over-year Core PCE 1.5%, below the Fed's target range of 2%.|
|Tue, Aug 01 8:35 AM CoreLogic reports that home prices, including distressed sales, rose 6.7% in June 2017 from June 2016, +1.1% from May 2017 to June 2017.|
|Tue, Aug 01 8:33 AM June Core PCE in line at 0.1%.|
|Tue, Aug 01 8:31 AM June Personal Income 0.0% vs 0.3%. Personal Spending 0.1%, in line.|
|Tue, Aug 01 8:23 AM S&P futures higher on strong earnings season. Apple earnings after the close today.|
|Tue, Aug 01 8:22 AM U.S. dollar index 92.86, +0.14.|
|Tue, Aug 01 8:21 AM 10-yr yield 2.30%, near unchanged.|
|Tue, Aug 01 8:17 AM MBS open flat to lower ahead of the 8:30 ET release of June Personal Income & Spending and Core PCE.|
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.