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MIG Market Watch, June 22nd, 2020

MIG Market Watch, June 22nd, 2020


MIG Market Watch, June 22nd, 2020

MARKET COMMENT
Mortgage bond prices finished the week lower which put upward pressure on rates. The Fed kept their MBS buying relatively constant, but we still saw selling pressure most of the trading days. The data was mixed but some releases surprised with signals of economic strength. Retail sales surged higher by 17.7%. Analysts expected an increase of 9%. Industrial production rose 1.4% vs the expected 3% increase. Capacity use was 64.8% vs 68%. The NAHB housing index was 58 vs the expected 45 reading. Housing starts were 974K vs the expected 1170K. Weekly jobless claims were 1.508M vs the expected 1.3M. Philadelphia Fed was 27.5 vs the expected negative 25. Mortgage interest rates finished the week worse by 1/8 to 1/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Existing Home Sales Monday, June 22,
10:00 am, et
4.4M Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates.
New Home Sales Tuesday, June 23,
10:00 am, et
650K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
FHFA House Price Index Wednesday, June 24,
10:00 am, et
Up 0.4% Moderately Important. A measure of single family house prices. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, June 25,
8:30 am, et
1.4M Important. An indication of employment. Higher claims may result in lower rates.
Durable Goods Orders Thursday, June 25,
8:30 am, et
Up 0.5% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Q1 GDP Thursday, June 25,
8:30 am, et
Down 5% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Personal Income and Outlays Friday, June 26,
8:30 am, et
Down 0.6%,
Up 3.1%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, June 26,
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, June 26,
10:00 am, et
78.9 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

EXISTING HOME SALES
The National Association of Realtors releases existing home sales data near the end of each month. The data is derived from a sampling of MLS data across the nation. The release shows the current sales rate for existing single-family, coops, and condos. A national figure and four regional figures are provided. The housing market is a critical component of the US economy. A house is usually one of the largest assets a consumer owns. Housing usually leads market recoveries or can signal trouble ahead. The housing industry remains mixed while some areas show strength, others languish. While the release usually is not a big market mover it still has the potential to result in some market volatility and provides a snapshot of the health of the housing 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