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MIG Market Watch, May 11th, 2020

MIG Market Watch, May 11th, 2020


MIG Market Watch, May 11th, 2020

MARKET COMMENT
Mortgage bond prices finished the lower which put upward pressure on rates. Rates started the week higher Monday morning and that trend continued through Thursday. The changes were within a narrow range daily but cumulatively over the course of four days caused higher mortgage interest rates. This happened despite the fact the Fed continued to buy billions of dollars’ worth of mortgage-backed securities. Stocks looked to close the week higher by over 600 points. Factory orders fell 10.3% vs 9.7%. The trade deficit was $44.4B and in line with estimates. Weekly jobless claims were 3.169M vs the expected 2.9M. Q1 productivity fell 2.5% vs the expected 6% decline. Unemployment figures (below) continued to reflect the economic challenges of the coronavirus. Mortgage interest rates finished the week worse by 1/4 to 1/2 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Price Index Tuesday, May 12,
8:30 am, et
Down 0.7%,
Core down 0.2%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Producer Price Index Wednesday, May 13,
8:30 am, et
Down 0.4%,
Core down 0.1%
Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Weekly Jobless Claims Thursday, May 14,
8:30 am, et
3M Important. An indication of employment. Higher claims may result in lower rates.
Retail Sales Friday, May 15,
8:30 am, et
Down 4% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Industrial Production Friday, May 15,
9:15 am, et
Down 12% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization Friday, May 15,
9:15 am, et
65% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Business Inventories Friday, May 15,
10:00 am, et
Down 0.2% Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.
U of Michigan Consumer Sentiment Friday, May 15,
10:00 am, et
68 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

WEAK EMPLOYMENT
The U.S. Bureau of Labor Statistics reported Friday that “In April, the unemployment rate increased by 10.3 percentage points to 14.7 percent. This is the highest rate and the largest over-the-month increase in the history of the series (seasonally adjusted data are available back to January 1948). The number of unemployed persons rose by 15.9 million to 23.1 million in April. Total nonfarm payroll employment fell by 20.5 million in April. The changes in these measures reflect the effects of the coronavirus (COVID-19) pandemic and efforts to contain it. Employment fell sharply in all major industry sectors, with particularly heavy job losses in leisure and hospitality. This news release presents statistics from two monthly surveys. The household survey measures labor force status, including unemployment, by demographic characteristics. The establishment survey measures nonfarm employment, hours, and earnings by industry.”

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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