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MIG Market Watch, May 6th, 2019

MIG Market Watch, May 6th, 2019


MIG Market Watch, May 6th, 2019

MARKET COMMENT
Mortgage bond prices finished the week near unchanged which kept rates in check. The data was mixed. Personal income was weaker than expected while spending was higher than expected. Core PCE inflation was unchanged versus the expected 0.1% increase. Consumer confidence was solid. ADP payrolls showed the economy added 275,000 jobs in April which was strong. The Fed left rates unchanged and the chair’s remarks indicated they are not considering a rate cut. Employment Cost Index for Q1 rose 0.7% as expected. The Institute for Supply Management (ISM) report printed at 52.8, weaker than the expected 55. Productivity data showed economic strength with no price pressures. Payrolls rose 263,000 versus the expected 200,000 increase. Mortgage interest rates finished the week with discount points unchanged.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Credit Tuesday, May 7,
3:00 pm, et
$16B Low importance.  A significantly large increase may lead to lower mortgage interest rates.
3-year Treasury Note Auction Tuesday, May 7,
1:15 pm, et
Up 0.8% Important.  Notes will be auctioned.  Strong demand may lead to lower mortgage rates.
10-year Treasury Note Auction Wednesday, May 8,
1:15 pm, et
None Important.  Notes will be auctioned.  Strong demand may lead to lower mortgage rates.
Weekly Jobless Claims Thursday, May 9,
8:30 am, et
225K Important.  An indication of employment.   Higher claims may result in lower rates.
Producer Price Index Thursday, May 9,
8:30 am, et
Up 0.4%,
Core up 0.4%
Important.  An indication of inflationary pressures at the producer level.  Lower figures may lead to lower rates.
Trade Data Thursday, May 9,
8:30 am, et
$49.9B deficit Important.  Bonds will be auctioned.  Strong demand may lead to lower mortgage rates.
30-year Treasury Bond Auction Thursday, May 9,
1:15 pm, et
None Important.  Bonds will be auctioned.  Strong demand may lead to lower mortgage rates.
Consumer Price Index Friday, May 10,
8:30 am, et
Up 0.4%,
Core up 0.2%
Important.  A measure of inflation at the consumer level. Weaker figures may lead to lower rates.


Fed Statement

Information received since the Federal Open Market Committee met in March indicates that the labor market remains strong and that economic activity rose at a solid rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Growth of household spending and business fixed investment slowed in the first quarter. On a 12-month basis, overall inflation and inflation for items other than food and energy have declined and are running below 2 percent. On balance, market-based measures of inflation compensation have remained low in recent months, and survey-based measures of longer-term inflation expectations are little changed. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020