| 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% | 3.25% APR 3.326% |
| 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: Sideways
Advise Your Clients: Locking
Current Price of FNMA 3.5% Bond: $104.47, +6bp
Mortgage Bonds continue to trade just beneath resistance and hover near the best levels of the year.
The only economic report to be released today is the NAHB Housing Market Index at 10am. The rest of the week's calendar is on the light side with Weekly Claims, Housing Starts, Building Permits and Existing Home Sales.
There are no Treasury Note or Bond auctions this week.
Stocks are lower on weak earnings out of Morgan Stanley along with China reporting GDP in Q3 of 6.9%. And where it barely beat estimates of 6.8%, it was the first time it was below 7% since the global financial crisis began. Any other developed country would kill for 6.9% growth, so we are not as disappointed on the news as some may be.
Technically, as mentioned, the Bond continues in its sideways pattern with no clear signs of a breakout to the upside from current levels. And where we see that Stocks are lower, the sentiment can quickly reverse during the session. Clients should still be advised to lock.
One thing we are watching ... the importing of deflation on goods and services around the globe. If we see continued deflation and/or disinflation ... that may be enough to push Bonds a bit higher.
Clients should still be advised to lock at what looks like the top of the present market.
