| Loan Program | Up to $417,000 | $417,001 - $601,450 | $601,451-$1,000,000 |
| 30 yr Fixed Rate | 3.75% APR 3.825% | 4% APR 4.066% | 3.75% APR 3.791% |
| 15 yr Fixed Rate | 3% APR 3.127% | 3.25% APR 3.369% | 3.375% APR 3.453% |
| 5/1 Adjustable Rate | 3% APR 3.132% | 2.625% APR 2.686% | 2.625% APR 2.790% |
Single family, owner occupied, 80% loan to value, 740 or better fico
Current Trend Direction: Lower
Advise Your Clients: Locking
Current Price of FNMA 3.5% Bond: $104.19, -3bp
Note: The Monthly Bond Rollover occurred after the close on Friday with the effect being -9p for the 3.5% coupon. Every month the coupon "rolls over". In this case, this month's coupon is closed out and all new loans are placed into next month's coupon. There is no effect on rate sheets or pricing. Think of it as the time they mature. The recently closed issue, loans that are satisfied 30 years from now, are packaged and sold. Because the seller or wholesale lender now has an additional 30-days, it is like having a 30-day extension on their rate lock.
Mortgage Bonds begin the week near unchanged, while Treasury prices are higher after the Bond markets closed yesterday in observance of Columbus Day.
Weak disappointing trade data out of China is pushing Stock prices lower and comes after seven straight days of gains for Stocks. However, Stock prices are off their opening lows.
There are no economic reports due for release today, but the rest of the week is packed with data on wholesale and consumer inflation, manufacturing, Retail Sales and Consumer Sentiment. In addition, earnings season continues.
Technically, the Bond is trading just above support at the 200-day Moving Average. With Stocks lower this morning and Mortgage Bonds not being able to put together any meaningful gains, clients should consider locking. Have a great week.
