Translate:

EN

MIG Market Watch, February 10th, 2020

MIG Market Watch, February 10th, 2020


MIG Market Watch, February 10th, 2020

MARKET COMMENT
Mortgage bond prices finished the week mixed with government prices lower and conventional prices near unchanged. Most of the economic data was solid and rates were higher the first portion of the week as stocks rallied. The ISM Index was 50.9 vs the forecast of 48.5. Factory orders were stronger than expected. ADP employment rose 291K. Analysts expected an increase of 156K. Weekly jobless claims were lower than expected. Rates recovered a little Thursday and Friday as there was some stock weakness. The coronavirus fears continued, and traders remained uncertain of the global financial ramifications. Productivity rose 1.4% vs the expected 1.6%. The heavyweight employment report was mixed with the headline figure showing unemployment at 3.6% vs 3.5% and payrolls surging 225K vs 160K. Mortgage interest rates finished the week near unchanged to worse by 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
3-year Treasury Note Auction Tuesday, Feb. 11,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
10-year Treasury Note Auction Wednesday, Feb. 12,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Weekly Jobless Claims Thursday, Feb. 13,
8:30 am, et
205K Important. An indication of employment. Higher claims may result in lower rates.
Consumer Price Index Thursday, Feb. 13,
8:30 am, et
Up 0.1%,
Core up 0.2%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
30-year Treasury Bond Auction Thursday, Feb. 13,
1:15 pm, et
None Important. Bonds will be auctioned. Strong demand may lead to lower mortgage rates.
Retail Sales Friday, Feb. 14,
8:30 am, et
Up 0.3% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Industrial Production Friday, Feb. 14,
9:15 am, et
Down 0.1% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Capacity Utilization Friday, Feb. 14,
9:15 am, et
76.9% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
U of Michigan Consumer Sentiment Friday, Feb. 14,
10:00 am, et
99.7 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

DEBT & DEFICIT
The Federal budget deficit is the difference between what the US Government spends each year and what they bring in. The national debt is the total of all unpaid obligations borrowed by the US Government. The Congressional Budget Office (CBO) projects the federal budget deficit to be about $1 trillion in 2020 and to average $1.3 trillion in each following year. Current US national debt exceeds $23T. The CBO notes that “relative to the size of the economy, deficits would remain above 4.3 percent of gross domestic product in every year between 2020 and 2030. Other than a six-year period during and immediately after World War II, the deficit over the past century has not exceeded 4.0 percent for more than five consecutive years.” The CBO warns that growing debt above projections could “dampen economic output.”

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