| Loan Program | Up to $417,000 | $417,001 - $601,450 | $601,451-$1,000,000 |
| 30 yr Fixed Rate | 3.625% APR 3.702% | 3.875% APR 3.935% | 3.5% APR 3.540% |
| 15 yr Fixed Rate | 2.875% APR 3.011% | 3.25% APR 3.355% | 3.125% APR 3.201% |
| 5/1 Adjustable Rate | 3% APR 3.074% | 2.625% APR 2.686% | 2.625% APR 2.665% |
Single family, owner occupied, 80% loan to value, 740 or better fico
Current Trend Direction: Sideways
Advise Your Clients: Carefully floating
Current Price of FNMA 3.0% Bond: $102.34, -9bp
Mortgage Bonds begin near unchanged and off their opening highs as investors await a plethora of economic data that culminates with the April Jobs report on Friday.
The national ISM Manufacturing Index will be released this morning and may give investors a sign to see if the sector can turn the corner to greener pastures after getting hit in the last year by a stronger dollar, along with weak overseas demand and lower commodity prices.
There are no Treasury Note or Bond auctions this week. The New York Fed will be purchasing Mortgage Bonds during the week and as said in last week's Fed statement, "It anticipates doing so until normalization of the level of the Federal Funds Rate is well under way. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions."
Oil continues to hover near the highs seen last November, WTI near $46/barrel. The U.S. dollar index has slid to an eight-month low of 92.85, signaling the Fed will hold off on any higher interest rate hikes in the near future.
Technically, the Fannie Mae 3% 30-year coupon has fallen below resistance one (R2) supplied by the 25-day Moving Average and just above the second layer of resistance (R1) at the 50-day Moving Average.
We will continue floating for now as prices hover near resistance at multi-year highs. Looking ahead, start to prepare your clients to lock in advance of the Friday Jobs Report
