The 30-year fixed-rate mortgage averaged 4.94% in the Nov.15 week, unchanged during the week. The 15-year fixed-rate mortgage averaged 4.36%, up three basis points. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.14%, also unchanged.
8 year high.
US Mortgage rates reach seven-year high.
In the news …
Security Description: VISALIA CA UNIF SCH DIST COPS UNDERLYING S&P A+
Insurance Desc: AGM
Interest Rate: 4.00%
Call Features: 5/1/2021 @ 100
Yield to Call: 3.285%
Yield to Maturity: 3.864%
“The 30-year fixed-rate mortgage averaged 4.04% during the week ending Jan. 18, Freddie Mac said Thursday, up from 3.99% in the prior week. The 15-year fixed-rate mortgage averaged 3.49%, also up five basis points. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.46%, unchanged during the week.”
“As uncertainty continues to surround the ever-changing tax overhaul plan, municipal bond issuers aren’t taking any chances: They’re conducting a gusher of bond sales at a pace not seen in more than 30 years.
Issuance this week is expected to total almost $12 billion, according to Thomson Reuters, following two weeks that each saw $20 billion in sales.
At the current rate, state and local governments are on track to easily exceed the monthly record of $54.7 billion in bond sales reached in 1985.”
The latest plans to overhaul the US tax code left the tax exemption on muni bond interest unchanged.
“Early signs indicate bond insurers can withstand the recent hurricanes Harvey and Irma with no change in credit ratings, while Maria’s impact may be moot.
Although insurers are still tallying the costs, S&P Global Ratings said Assured Guaranty, Build America Mutual and National Public Finance Guarantee aren’t at risk for a ratings downgrade as a result of Harvey and Irma.” — FMS Bonds
We have said it before, but worth repeating especially when investors have been practically forced into risky instruments by ZIRP.
“Seadrill Ltd., the London-based offshore driller controlled by billionaire Norwegian shipping magnate John Fredriksen, filed bankruptcy protection in the Southern District of Texas after working out a deal with most of its senior lenders to inject $1 billion of new money into the company pursuant to a pre-arranged plan of reorganization.”
The Institute for Supply Management (ISM) said its manufacturing index in August climbed to 58.8% from 56.3% in July. The highest reading since April 2011.