Rates & Employment News

Rates & Employment News

August 4th, 2017

 

 

NL

 

Suggestions that can change during the day:  11:23 AM EST - Today's strong Jobs Report for July sent Mortgage Bond yields higher, while Stocks are improving. We'll keep an eye on trading while floating. 

Rates Effective August 4th, 2017 11:11 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% (3.961%APR)

15-Year Fixed Rate 3.250% (3.397% APR)

After close Commentary: MBS ended the week on a slightly lower note after the solid Jobs Report for July was released. The benchmark Fannie Mae 30-yr coupon closed at 103.12, -16bp and up modestly for the week. The Dow closed at a record high of 22092.81 up 66.71 points. The S&P closed at 2476.83 up 4.67 points while the NASDAQ finished the week at 6351.56 up 11.22 points. WTI oil closed at 49.48 up 35 cents. 10-yr yield 2.26%. Next week the economic calendar is limited to the Consumer and Producer Price Index. Have a great weekend!

Late morning Commentary:   The Bureau of Labor Statistics reported that 209,000 jobs were created in July, above expectations of 181,000. Revisions to May and June yielded 2,000 more new jobs than previously reported. The Unemployment Rate fell to 4.3% from 4.4%, the lowest since March 2001. Average hourly earnings rose by 0.3% from June to July, in line with estimates and up from 0.2% in June. Year-over-year wages grew 2.5% compared with 2.4% in June. Overall, it was a good report as the labor market continues to strengthen.

Fannie Mae reported on Thursday that home prices hit an all-time high in the second quarter of 2017, which was above the previous peak in 2006. Home prices were up 2.4% in the second quarter of 2017 from that 2006 period. The gains varied in a big way. North Dakota saw the biggest increase since 2006 of 53.7%, while the growth rate in Nevada fell nearly 25%.

11:32 AM ET  3.5% Fannie Mae 30-yr coupon down 19 bp at a price of 103.09  up 0 bp when rates were set today at 10:00 am et Open 103.22 High 103.22 Low 103.06

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 this is a psychological number because all of the Zeros 103.00

Hopefully we can consider 103 is the bottom at this time.

Fri, Aug 04 10:04 AM MBS edging lower, Stocks giving up gains as traders and investors take some chips off the table after the recent gains.
Fri, Aug 04 9:39 AM S&P trades higher soon after the opening, +5.81 points.
Fri, Aug 04 9:29 AM Rob Chrisman reports Harvard research finds that Americans will spend $316B remodeling their homes in 2017 vs. $296B in 2016. This also compares to a low of $222B (in 2009) and a high of $334B in 2006 (and adjusted for inflation).
Fri, Aug 04 9:05 AM Average hourly earnings did rise to 0.3% in July from 0.2% in June.
Fri, Aug 04 8:41 AM S&P futures edge a bit higher after the Jobs Report.
Fri, Aug 04 8:40 AM The Labor Force Participation Rate 62.9 from 62.8, still historically low.
Fri, Aug 04 8:39 AM The U6 number unchanged at 8.6%. U6 - total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force.
Fri, Aug 04 8:38 AM Not a big reaction in MBS after the data.
Fri, Aug 04 8:36 AM Average hourly earnings 0.3%, in line.
Fri, Aug 04 8:35 AM May and June saw a meager revision higher of a total of 2K.
Fri, Aug 04 8:32 AM July Jobs Report shows 209K new workers hired vs the 181K expected.
Fri, Aug 04 8:32 AM The Unemployment Rate 4.3% from 4.4% and in line with estimates.
Fri, Aug 04 8:22 AM Average hourly earnings will be a key number in the Jobs Report.
Fri, Aug 04 8:21 AM U.S. dollar index 92.68, near unchanged.
Fri, Aug 04 8:21 AM WTI oil $48.87/barrel, near unchanged.
Fri, Aug 04 8:14 AM S&P futures higher ahead of the numbers but that can all change in 15 minutes.
Fri, Aug 04 8:11 AM MBS open flat to lower ahead of the 8:30 a.m. ET release of the July Jobs Report where it is expected that U.S. employers added 181K new workers.

**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
 

Mission Statement

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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