Translate:

EN

MIG Market Watch, October 7th, 2019

MIG Market Watch, October 7th, 2019


MIG Market Watch, October 7th, 2019

MARKET COMMENT

Mortgage bond prices were higher this week which put downward pressure on rates. Disappointing data and uncertainty about the future of the economy resulted in stronger demand for US debt instruments. Rates were lower Monday and a huge miss on the Institute of Supply Management release Tuesday morning put additional downward pressure on rates. There was a slight selloff Tuesday afternoon after the runup in prices but that was countered by weak ADP employment data Wednesday morning. ADP payrolls increased 135K versus the expected 150K. Weekly jobless claims were 219K. Analysts expected a 215K reading. Factory orders fell 0.1%. Unemployment was 3.5% versus the expected 3.7%. Non-farm payrolls increased 136K versus the expected 145K. Mortgage interest rates finished the week better by approximately 5/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Credit Monday, Oct. 7,
3:00 pm, et
$24B Low importance.  A significantly large increase may lead to lower mortgage interest rates.
Producer Price Index Tuesday, Oct. 8,
8:30 am, et
Up 0.2%,
Core up 0.2%
Important.  An indication of inflationary pressures at the producer level.  Weaker figures may lead to lower rates.
3-year Treasury Note Auction Tuesday, Oct. 8,
1:15 pm, et
None Important.  Notes will be auctioned.  Strong demand may lead to lower mortgage rates.
10-year Treasury Note Auction Wednesday, Oct. 9,
1:15 pm, et
None Important.  Notes will be auctioned.  Strong demand may lead to lower mortgage rates.
Consumer Price Index Thursday, Oct. 10,
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, Oct. 10,
8:30 am, et
212K Important.  An indication of employment.   Higher claims may result in lower rates.
30-year Treasury Bond Auction Thursday, Oct. 10,
1:15 pm, et
None Important.  Bonds will be auctioned.  Strong demand may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, Oct. 11,
10:00 am, et
93.3 Important.  An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

 

Manufacturing Weakness

The Institute for Supply Management (ISM) index last week flashed a huge warning sign that caught everyone’s attention. ISM printed at 47.8 which was considerably weaker than the expected 50.2 reading. The ISM Manufacturing Index is based on surveys of more than 300 manufacturing firms and monitors employment, production, inventories, new orders and supplier deliveries. It is one of the first data releases each month and influences the tone of both investor and business confidence. A composite index reading of 50 can be thought of as a “swing point.” A reading above 50 implies an increase in economic activity, while a reading below 50 indicates a decline. The ISM report is difficult for economists to forecast because there is little data upon which to base an educated guess. The report has a large “surprise factor” and can cause market swings as we saw last week. The big concern going forward is whether the report is an anomaly or a sign of future economic trouble.

Share

Leave a comment

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