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MIG Market Watch, August 12th, 2019

MIG Market Watch, August 12th, 2019


MIG Market Watch, August 12th, 2019

MARKET COMMENT

Mortgage bond prices finished the week lower which put upward pressure on rates.  Rates were neutral the first portion of the week but selling pressure emerged Wednesday afternoon and Thursday morning.  Stocks were very volatile as trade tensions increased between the US and China.  The DOW went from being down 589 points to only closing a few points lower Wednesday.  Chicago Fed President Evans indicated he wants another 25-basis point cut this year.  Consumer credit came in at $14.6B versus the expected $16.5B.  The 10Y Treasury auction was weaker than average.  The producer price index rose 0.2% and the core value, which excludes the volatile food and energy costs, fell 0.1%.

Mortgage interest rates finished the week worse by approximately 1/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Price Index Tuesday, Aug. 13,
8:30 am, et
Up 0.2%,
Core up 0.1%
Important.  A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Weekly Jobless Claims Thursday, Aug. 15,
8:30 am, et
208K Important.  An indication of employment.   Higher claims may result in lower rates.
Retail Sales Thursday, Aug. 15,
8:30 am, et
Up 0.8% Important.  A measure of consumer demand.  A smaller than expected increase may lead to lower mortgage rates.
Preliminary Q2 Productivity Thursday, Aug. 15,
8:30 am, et
Up 0.1% Important.  A measure of output per hour.  Improvement may lead to lower mortgage rates.
Industrial Production Thursday, Aug. 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 Thursday, Aug. 15,
9:15 am, et
77.8% Important.  A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Philadelphia Fed Survey Thursday, Aug. 15,
10:00 am, et
17.8 Moderately important.  A survey of business conditions in the Northeast.  Weakness may lead to lower rates.
Housing Starts Friday, Aug. 16,
8:30 am, et
1255K Important.  A measure of housing sector strength.  Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Friday, Aug. 16,
10:00 am, et
98.3 Important.  An indication of consumers’ willingness to spend.  Weakness may lead to lower mortgage rates.

 

Productivity

Productivity is the rate at which goods or services are produced.  It is most commonly defined in terms of labor, which is the contribution of people to the process.  Labor costs represent about two thirds of the value of the output produced.  The Bureau of Labor Statistics of the US Department of Labor releases the most widely cited productivity statistics quarterly and annually. Increased productivity is often credited for economic growth with little signs of inflation.  Productivity is significant in that as it increases, businesses can produce more with the same or less input.  This wealth building effect is vital to the US economy.  As productivity increases, the US economy generally performs better.  As productivity decreases, the economy generally suffers.

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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