October 12, 2017
October 12, 2017
Stocks have ended the day lower. The Dow closed down 31.88 at 22,841.01 and the S&P 500 closed down 4.31 at
2,550.93. Mortgage Bonds ended the day higher, just beneath overhead resistance at 103.
Boston Fed President, Eric Rosengren, spoke today and said that a December rate hike was likely…reinforcing our
thoughts that a December rate hike is almost certain.
Today’s 30-year Treasury Note Auction was met with outstanding demand. CNBC’s Rick Santelli grades the
auction an A-. The Yield awarded was 2.87% and the bid to cover was 2.53.
In economic news, The Producer Price Index, which measures wholesale inflation, was up 0.4% in September,
which was in-line with expectations. On a year over year basis Headline PPI moved up from 2.4% to 2.6%, which is
the biggest gain in over five and a half years. Core PPI, which strips out food and energy prices, was stronger than
expectations, rising by 0.4%. The year over year figure increased from 2.0% to 2.2%, which was also the highest
print since 2012. Most of the gains were due to the price of gasoline, which recorded its biggest increase in more
than two years, due to the disruptions at oil refineries in Texas caused by Hurricane Harvey. These wholesale
figures do not typically impact the market and do not always translate to the consumer.
Initial Jobless Claims, which measures individuals filing for unemployment benefits for the first time, was reported
at 243,000 for last week. This represents a drop of 15,000 from the previous report, which was revised slightly
lower from 260,000 to 258,000. This was a nice snap back from the higher Claims figures we have been seeing
due to the Hurricanes.
Economic Data
Producer Price Index: Actual = 2.6%; Prior = 2.4%
Producer Price Index: Actual = 2.2%; Prior = 2.0%
Initial Jobless Claims: Actual = 243,000; Consensus = 252,000; Prior = 258,000
Upcoming Events
Tomorrow morning’s Consumer Price Index report, which has been stubbornly low, will be important for the Bond
market. The last Headline and Core readings of CPI were at 1.9% for the Headline and 1.7% for Core. The market
is expecting the Headline figure to increase to 2.3% and the Core figure to increase to 1.8%. A higher inflation
reading could pressure Bonds lower, but we have not been seeing much inflation as of late.
Technical Picture
Mortgage Bonds are still trading in the middle of the range between support at 102.806 and overhead resistance
at 103…but Bonds are just beneath 103 after testing it earlier in the day and failing to break above it. The 10-year
Yield closed directly on the 200-day Moving Average – As we said this morning, if Yields can break beneath the
200-day Moving Average it would be a strong sign.
Position
Continue Floating
October 5, 2017
September 28, 2017
SecurityNational Mortgage has been awarded as one of the 50 best mortgage companies to work for by Mortgage executive Magazine. This is the second straight year SecurityNational has been included on the list. SNMC will be featured in the September/October issue of the magazine.
The award recognizes Security National in part for its company culture which extends a positive work-life balance for employees and loan officers. SNMC Leadership strives to provide world-class services to its clients, but also top-tier support, compensation, and benefits to its employees.
Each year, Mortgage Executive Magazine compiles a list of the nation’s top mortgage companies. The award is based on a survey conducted by Mortgage Executive Magazine. Over 200 mortgage companies and banks participated and more than 10,000 loan officers were surveyed. The online surveys are limited to licensed Mortgage Loan Officers who are presently employed by the companies they are rating. The survey is limited to companies with at least 30 eligible loan officers. Winners are selected based on a combination of total MLO votes and average rating score.
Learn more about how you could join our award-winning team.
