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MIG Market Watch, May 27th, 2019

MIG Market Watch, May 27th, 2019


MIG Market Watch, May 27th, 2019

MARKET COMMENT

Mortgage bond prices finished the week slightly higher which helped rates improve. Stocks experienced large up and down swings and mortgage-backed securities benefitted as a result. The US/China trade dispute escalated as major US tech companies suspended business with China based Huawei. The economic news was mixed as usual. Existing home sales were 5.19M versus the expected 5.35M. Weekly jobless claims came in at 211K, expected 218K. Continuing claims were 1.676M, expected 1.664M. New home sales were 673K versus the expected 665K. Durable goods orders fell 2.15. Analysts looked for a 2% decrease. The Treasury auction saw solid foreign demand. Mortgage interest rates still finished the week better by approximately 1/8 of a discount point despite the choppy trading.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
FHFA House Price Index Tuesday, May 28,
10:00 am, et
Up 0.4% Moderately Important. A measure of single family house prices. Weakness may lead to lower rates.
Consumer Confidence Tuesday, May 28,
10:00 am, et
129 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Treasury Auctions Begin Tuesday, May 28,
1:15 pm, et
None Important. 2Y Notes on Tuesday, 5Y Notes on Wednesday, and 7Y Notes on Thursday.
Weekly Jobless Claims Thursday, May 30,
8:30 am, et
215K Important. An indication of employment. Higher claims may result in lower rates.
Q1 GDP Thursday, May 30,
8:30 am, et
Up 3.1% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Personal Income and Outlays Friday, May 31,
8:30 am, et
Up 0.2%,
Up 0.4%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, May 31,
8:30 am, et
Up 0.2% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
U of Michigan Consumer Sentiment Friday, May 31,
10:00 am, et
97.5 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

 


Foreign Trouble

News out of the eurozone last week resulted in some flight to safety buying of US debt instruments such as Treasuries and mortgage-backed securities. A German purchasing managers index showed only a slight uptick in growth. This had traders concerned as Germany is seen as the bellweather of the eurozone. The region is immersed in continued trade disputes and a lot of financial headlines focused on continued BREXIT turmoil.

Treasuries saw yields fall sharply while MBSs only saw modest improvements. This is another reminder of the difference between the rates that fund the US Government and those that fund home purchases. Be cautious heading into the auctions this weak in the event foreign demand for US debt changes. Now is a great time to take advantage of historically favorable rates.

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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.
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  • 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