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MIG Market Watch, May 13th, 2019

MIG Market Watch, May 13th, 2019


MIG Market Watch, May 13th, 2019

MARKET COMMENT
Mortgage bond prices finished the week a tick or two lower which only put mild upward pressure on rates. The foreign demand for US Treasuries at the auctions this week was below average. However, stocks experienced some very large swings tied to uncertainties surrounding US and China trade negotiations. The data was mixed. Weekly jobless claims were higher than expected which is generally good for lower rates. Producer prices rose 0.2% as expected. The core rose 0.1% versus an expected 0.2% increase. The trade deficit was near expectations at $50B. Consumer prices rose 0.3% versus the expected 0.4% increase. The core rose 0.1% while analysts looked for a reading of 0.2%. Mortgage interest rates finished the week unchanged to worse by approximately 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Retail Sales Tuesday, May 14,
8:30 am, et
Up 1.4% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Industrial Production Wednesday, May 15,
9:15 am, et
Up 0.4% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization Wednesday, May 15,
9:15 am, et
78.6% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Business Inventories Wednesday, May 15,
10:00 am, et
Up 0.6% Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.
Weekly Jobless Claims Thursday, May 16,
8:30 am, et
225K Important. An indication of employment. Higher claims may result in lower rates.
Philadelphia Fed Survey Thursday, May 16,
10:00 am, et
9 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Leading Economic Indicators Friday, May 17,
10:00 am, et
Up 0.4% Important. An indication of future economic activity. A smaller increase may lead to lower rates.
U of Michigan Consumer Sentiment Friday, May 17,
10:00 am, et
97.4 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

 


World Rates

Interest rates of the main countries around the world are set by their central banks. These bankers tend to raise rates when growth is expanding strongly and cut rates when their economies need stimulating. Currently the United States has the highest rate of any of its economic allies. The US rate sits at 2.5% while Australia is at 1.5%, the ECB is at 0%, Japan is at -0.1%, and the Bank of England is at 0.75%. Many of these central banks haven’t made any changes since 2016. For example, the ECB put rates to 0% in 2016 and haven’t moved since as they see global economic growth as a continued concern. The US Federal Reserve last raised rates December 2018 but even they paused the hikes this year and haven’t moved since. The Fed is clear that they are data dependent. That is why the economic reports each week often result in market swings. Fortunately, the trading pattern of late has been very tight and we have avoided huge market swings. Be cautious here as rates remain historically very favorable. Now is a great time to take advantage of these levels.

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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.
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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