Here’s the latest pricing as well as bond market information from today.
Current Mortgage Pricing From Hometown Lending Of Kirkland
| 30 Yr Fixed |
| 5/1 ARM |
| 7/1 ARM |
|
| Rate | Price | Rate | Price | Rate | Price |
| 4.500% | 2.000 | 3.750% | 1.000 | 4.250% | 0.875 |
| 4.625% | 1.500 | 3.875% | 0.625 | 4.375% | 0.500 |
| 4.750% | 0.750 | 4.000% | 0.250 | 4.500% | 0.125 |
| 4.875% | 0.000 | 4.125% | 0.000 | 4.625% | -0.250 |
| 5.000% | -0.375 | 4.250% | -0.375 | 4.750% | -0.625 |
| 15 Yr Fixed |
| 10/1 ARM |
|
|
|
| Rate | Price | Rate | Price |
|
|
| 4.250% | 0.000 | 4.375% | 1.125 |
|
|
| 4.375% | -0.500 | 4.500% | 0.625 |
|
|
| 4.500% | -1.000 | 4.625% | 0.250 |
|
|
| 4.625% | -1.250 | 4.750% | -0.125 |
|
|
| 4.750% | -1.750 | 4.875% | -0.625 |
|
|
Rates are based on conforming loan guidelines, subject to lender approval.
Bond Expert: Wednesday Wrap
From Seeking Alpha Link
Prices of Treasury coupon securities took a wild ride today as a variety of cross currents buffeted the fixed income market.
Markets opened with a bid on equity market weakness in China and maintained its firm one following an ostensibly weak Durable Goods report.
As the day progressed, the focus of the market shifted to supply in the form of the Treasury auction of $39 billion 5 year notes. I wrote about it extensively earlier. The Reader's Digest version is that the auction result was quite sloppy and the dealer community shot the taxpayers in the big toe with a 5 basis point tail.
The yield on the 2 year note increased 5 basis points to 1.17 percent. The yield on the 3 year note climbed 6 basis points to 1.70 percent. The yield on the 5 year note climbed 5 basis points to 2.65 percent. The yield on the 7 year note is 3 basis points higher at 3.31 percent. The yield on the 10 year note declined 2 basis points to 3.66 percent. And they are as dogs in heat regarding the Long Bond, as its yield tumbled 5 basis points to 4.50 percent.
The 2 year/5 year/30 year spread is 37 basis points. That is more than 10 basis points cheaper than the close of yesterday and represents the lack of interest in the auction.
The 2 year/10 year spread is 249 basis points, which is 7 basis points narrower on the day.
The 10 year/30 year spread is narrower by 2 basis points at 84 basis points.
Expectations regarding future inflation declined today by a tad. The breakeven on 10 year TIPS is 185 basis points today versus 186 basis points yesterday.
The breakeven spread on 30 year TIPS slipped to 228 basis points from 232 basis points yesterday.
10 Year Treasury Note Chart
Earlier in the day, the Open Market Desk intervened in the free market and purchased nearly $3 billion of securities with maturities between 2019 and 2026.
Goldman Sachs (GS) (purportedly a well connected and well informed and powerful bond firm domiciled in lower Manhattan) put out a piece today in which the firm called for higher bond yields.
They suggest that relative to other asset classes, the risk premium built into the Treasury market is too high and should decline to reflect less risky conditions. Here is a relevant excerpt:
- UST yields have room to rise. Financial conditions have eased significantly over the last month.
- Risk premium on the UST curve is high relative to other asset classes. As a result, flatteners may be attractive.
- The strong participation in June’s front-end auctions is likely not the start of a new trend.
I would humbly suggest that it is possible that the Treasury market has the correct story and the other markets are wrong.
The corporate bond market remains firm and there have been no significant changes since I posted on it earlier.
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