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MIG Market Watch, February 24th, 2020

MIG Market Watch, February 24th, 2020


MIG Market Watch, February 24th, 2020

MARKET COMMENT
Mortgage bond prices finished the week near unchanged which kept rates flat. Most of the daily movement was within a very narrow range. The NAHB house price index was 74 vs the expected 75. Stocks struggled as coronavirus fears expanded. Apple announced “world-wide iPhone supply will be temporarily constrained” due to production delays caused by the virus. There was an upward jump in inflation levels at the producer level, but MBS prices fortunately did not take much of a hit. Producer prices rose 0.5% vs the expected 0.1% increase. The core, which excludes volatile food and energy, rose 0.5% vs the expected 0.1%. Housing starts were a solid 1567K. The market expected a reading of 1460K. The Philadelphia Fed manufacturing index soared to 36.7 vs an expected reading of 12. Mortgage interest rates finished the week near unchanged to better by 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
FHFA House Price Index Tuesday, Feb. 25,
10:00 am, et
Up 0.2% Moderately Important. A measure of single family house prices. Weakness may lead to lower rates.
Consumer Confidence Tuesday, Feb. 25,
10:00 am, et
132.4 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Treasury Auctions Begin Tuesday, Feb. 25,
1:15 pm, et
None Important. 2Y Notes on Tuesday, 5Y Notes on Wednesday, and 7Y Notes on Thursday.
New Home Sales Wednesday, Feb. 26,
10:00 am, et
708K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
Durable Goods Orders Thursday, Feb. 27,
8:30 am, et
Down 1.5% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Feb. 27,
8:30 am, et
205K Important. An indication of employment. Higher claims may result in lower rates.
Q4 GDP 2nd Estimate Thursday, Feb. 27,
8:30 am, et
Up 2.1% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Personal Income and Outlays Friday, Feb. 28,
8:30 am, et
Up 0.3%,
Up 0.3%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, Feb. 28,
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, Feb. 28,
10:00 am, et
100.5 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

MBS MARKET
Mortgage-backed securities directly dictate daily mortgage interest rate changes. Most of these financial instruments are backed by pools of mortgages issued by agencies such as Freddie Mac, Ginnie Mae, and Fannie Mae. These securities are bought and sold just like stocks and bonds. However, an MBS has inherent credit, default, and prepayment risk. When the demand is solid prices rise and interest rates fall. The inverse leads to rising mortgage interest rates. It is important to know that rates change throughout each trading day.

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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