Market Brief: Steady as she goes

October 17, 2017
Exuberance is creeping in, but there’s little substantive news to really move the markets. Generally, earnings are strong, interest rates remain at historical lows, we are at near full-employment, and the business environment is favorable.

Exuberance is creeping in, but there's little substantive news to really move the markets. Click to Tweet
The prevailing mortgage rates trend continues to be sideways.
10-year US Treasury Rates

10-year US Treasury Rates

Today’s Prevailing Mortgage Rates*

30-year fixed rate
3.875-4.125%
3.956 – 4.125% APR
30-year FHA/VA
3.250 – 3.625%
4.108 – 4.368% APR
15-year fixed rate
3.250 – 3.500%
3.345 – 3.50% APR

Today’s favorite stock pick:

I love the banks at this stage in the cycle and $BAC seems to have the most upside. In general, banks are attractive because:
  • Interest rates will eventually rise
  • Banks have had time to strengthen their balance sheet and get healthy
  • Lending is beginning to loosen up again, which will start to fatten profits
I love the banks at this stage in the cycle and $BAC seems to have the most upside Click to Tweet
Lending is beginning to loosen up again, which will start to fatten profits Click to Tweet
I also like this potential for a big inversion as debt shifts back to financial companies.
Returning bank debt from corporate-bond issuances

* These rates and programs are based on the following base assumptions: a loan amount of $200,000, CLTV of 80%, and a credit score of 740 in the 48150 zip code. Your actual rate, payment, and financing costs may be higher. In addition, there may be additional third-party fees, such as lender underwriting appraisal, credit reporting, title services, and government recording, etc, that may be applied at or before closing. Always get an official loan estimate before choosing your loan.

photo credit: https://unsplash.com/@naassomz1

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