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MIG Market Watch, May 25th, 2020

MIG Market Watch, May 25th, 2020


MIG Market Watch, May 25th, 2020

MARKET COMMENT
Mortgage bond prices finished the week lower which put a little upward pressure on rates. We started on a negative note Monday morning as the Fed continued to reduce their MBS purchases. The daily amount was $4.545B compared to $5.08B the prior week and $25B over a month ago. Stocks continued to generally perform well despite massive unemployment and business closings across the country. The DOW looked to rise nearly 400 points for the week. The data was mixed. The NAHB housing read was 37 vs the expected 34. Housing starts were 891K vs the expected 950K. Weekly jobless claims were 2.438M vs 2.4M. The Philadelphia Fed business conditions report was down 43.1 which was close to the expected 43. Mortgage interest rates finished the week worse by 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
FHFA House Price Index Tuesday, May 26,
10:00 am, et
Up 0.7% Moderately Important. A measure of single family house prices. Weakness may lead to lower rates.
New Home Sales Tuesday, May 26,
10:00 am, et
500K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
Consumer Confidence Tuesday, May 26,
10:00 am, et
85.5 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Weekly Jobless Claims Thursday, May 28,
8:30 am, et
2.59M Important. An indication of employment. Higher claims may result in lower rates.
Durable Goods Orders Thursday, May 28,
8:30 am, et
Down 15% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Q1 GDP Thursday, May 28,
8:30 am, et
Down 4.8% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Personal Income and Outlays Friday, May 29,
8:30 am, et
Down 8.5%,
Down 10%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, May 29,
8:30 am, et
Down 0.3% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
U of Michigan Consumer Sentiment Friday, May 29,
10:00 am, et
73.7 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

CONSUMER CONFIDENCE
The Conference Board releases the Consumer Confidence Index on the last Tuesday of every month. The report details the levels of confidence individual households have in the performance of the economy. The data is derived from a survey of 5,000 households nationwide. The survey polls consumer opinions on current business conditions, their jobs, their incomes, and their future spending plans. The Conference Board is a non-profit group that has produced the data since 1967. The consumer confidence index is significant in that it provides a precursor into the willingness of consumers to spend in the months ahead. Consumers are vital to the US economy as consumer spending is a large portion of the gross domestic product. Manufacturers attempt to gauge consumer spending and adjust production accordingly.

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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