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MIG Market Watch, June 15th, 2020

MIG Market Watch, June 15th, 2020


MIG Market Watch, June 15th, 2020

MARKET COMMENT
Mortgage bond prices finished the week significantly higher which put downward pressure on rates. The Fed’s announced tentative MBS buying amounts remained near unchanged which started the week on a positive note. There was some upward pressure on rates in the middle of the week tied to the data. Consumer prices fell 0.1% vs the expected 0.8% decrease. The core, which excludes volatile food and energy prices, fell 0.1% vs an expected unchanged reading. The Fed left rates unchanged and indicated, “over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace.” Mortgage interest rates finished the week better by 5/8 to 3/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Retail Sales Tuesday, June 16,
8:30 am, et
Up 7.0% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Industrial Production Tuesday, June 16,
9:15 am, et
Up 2.4% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization Tuesday, June 16,
9:15 am, et
66.5% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Business Inventories Tuesday, June 16,
10:00 am, et
Down 0.3% Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.
NAHB Housing Index Tuesday, June 16,
10:00 am, et
44 Moderately Important. A measure of single family housing. Weakness may lead to lower mortgage rates.
Housing Starts Wednesday, June 17,
8:30 am, et
1.077M Important. A measure of housing sector strength. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, June 18,
8:30 am, et
1.4M Important. An indication of employment. Higher claims may result in lower rates.
Philadelphia Fed Survey Thursday, June 18,
10:00 am, et
49.7 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.

VIRUS FEARS REIGNITE
The financial markets became very volatile last week as coronavirus fears reignited. Mortgage bond prices were positive Thursday morning as stocks struggled. This helped mortgage rates test lows temporarily that morning. The DOW closed 1862 points lower that day but even mortgage bond prices experienced some selling pressure in the last few hours of trading. This was one of the worst days in the stock market since March. Analysts attributed the selloff to concerns virus cases increased after many states reopened businesses.

The future of the economy remains uncertain. The US Treasury Secretary told the Senate Small Banking Committee that more assistance is needed. “We’re open-minded, but we absolutely believe small businesses, and by the way many big businesses in certain industries, are absolutely going to need more help.”

The great news from the Fed was that they will continue to buy mortgage-backed securities in order to keep mortgage rates low and markets functioning. Now is a great time to take advantage of historically low rates.

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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