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Blog :: 12-2015

Weekly Mortgage Message from our in-house Mortgage Master Specialist Colleen Polson

 

Loan Program

Up to $417,000

$417,001 - $601,450

$601,451-$1,000,000

30 yr Fixed Rate

4% APR 4.076%

4.125% APR 4.181%

3.75% APR 3.791%

15 yr Fixed Rate

3.125% APR 3.258%

3.5% APR 3.616%

3.5% APR 3.580%

5/1 Adjustable Rate

3% APR 3.132%

2.875% APR 2.931%

2.875% APR 2.918%

Single family, owner occupied, 80% loan to value, 740 or better fico

Current Trend Direction: Sideways, trying to stabilize

Advise Your Clients: Carefully Floating

Current Price of FNMA 3.5% Bond: $103.47, +9bp

After last week's volatility, Mortgage Bonds are trading near unchanged as traders look ahead to the next big event, the Fed meeting. 

The two-day Fed meeting kicks off next Tuesday the 15th and ends on Wednesday with the monetary policy statement at 2:00pm ET. Fed Fund Futures show an 80% chance of a Fed Fund Rate hike next week, most likely a 0.25% raise. In the absence of a surprise negative shock between now and then, it looks like the Fed must raise rates or lose credibility since they have been signaling a go.

There are no economic reports due out until Thursday's Weekly Initial Jobless Claims data. The Treasury will be selling $24B 3-Year T Notes tomorrow, $21B 10-Years on Wednesday and $13B 30-Year Bonds on Thursday.

The Monthly Bond Rollover will take place after the close of trading tomorrow. 

Oil prices continue to edge lower, after OPEC decided not to cut production last week.  Prices are now below $40 a barrel as supply continues to rise.  Economics 101, says when supply outpaces demand, prices must fall.

Technically, Mortgage Bonds continue to try and stabilize after last Friday's impressive rebound. With Stocks lower, advise clients to carefully float, and get prepared to lock once again should prices approach the 200-day Moving Average.

 

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    Weekly Mortgage Message from our in-house Mortgage Master Specialist Colleen Polson

    Loan Program

    Up to $417,000

    $417,001 - $601,450

    $601,451-$1,000,000

    30 yr Fixed Rate

    4% APR 4.076%

    4.125% APR 4.181%

    3.875% APR 3.920%

    15 yr Fixed Rate

    3.125% APR 3.258%

    3.5% APR 3.616%

    3.5% APR 3.580%

    5/1 Adjustable Rate

    3% APR 3.132%

    2.875% APR 2.931%

    2.875% APR 2.918%

    Single family, owner occupied, 80% loan to value, 740 or better fico

      

    Current Trend Direction: Sideways beneath resistance

    Advise Your Clients: Locking

    Current Price of FNMA 3.5% Bond: $103.44, Unchanged

    Mortgage Bonds trade near unchanged and remain below resistance as the month of November comes to an end.

    The week's economic calendar is packed with a slew of important economic reports culminating with the November Jobs Report on Friday, where it is expected that employers added 196K new workers.  If this week's Non-farm Payrolls report reveals employment growth remains solid, a Fed Rate hike in December will be highly likely.

    There are no T Note or Bond auctions this week.  Later this morning, October Pending Home Sales and November Chicago PMI will be released. 

    Clients should be advised to lock as prices remain in a tight sideways range, but beneath resistance.  Should prices break above this resistance and step higher, we will be more bullish and will adjust our stance accordingly.

     

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