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MIG Market Watch, June 29th, 2020

MIG Market Watch, June 29th, 2020


MIG Market Watch, June 29th, 2020

MARKET COMMENT
Mortgage bond prices finished the week higher which put a little downward pressure on rates. The Fed kept their MBS buying relatively constant. The data was mixed. Existing home sales were 3.91M vs the expected 3.98M. New home sales were 676K vs 640K. The NAHB Housing Price Index rose 0.2% vs the expected 0.1% increase. Jobless claims were 1.48M vs 1.3M. Durable goods rose 15.8% vs 13%. Q1 GDP fell 5% as expected. Income fell 4.2% vs the expected 6% decline. Spending rose 8.2% vs the expected 7% increase. Core PCE Inflation rose 0.1%. Analysts expected that figure to remain unchanged. Consumer sentiment was 78.1 vs 78.8. Mortgage interest rates finished the week better by approximately 1/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Confidence Tuesday, June 30,
10:00 am, et
90 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
ADP Employment Wednesday, July 1,
8:30 am, et
3.5M Important. An indication of employment. Weakness may bring lower rates.
ISM Index Wednesday, July 1,
10:00 am, et
47.6 Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
Construction Spending Wednesday, July 1,
10:00 am, et
Down 0.8% Low importance. An indication of economic strength. Significant weakness may lead to lower rates.
Weekly Jobless Claims Thursday, July 2,
8:30 am, et
1.3M Important. An indication of employment. Higher claims may result in lower rates.
Trade Data Thursday, July 2,
8:30 am, et
$47B deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
Employment Thursday, July 2,
8:30 am, et
12.2%,
Payrolls 3M
Very important. An increase in unemployment or weakness in payrolls may bring lower rates.
Factory Orders Thursday, July 2,
10:00 am, et
Up 6.6% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Market Holiday Friday, July 3 Important. Bond market closes early Thursday July 2 and is closed the entire day Friday.

FACTORY ORDERS
Factory orders data is a monthly report released by the US Census Bureau. The release is officially referred to as The Advance Report on Durable Goods Manufacturers’ Shipments, Inventories, and Orders.

The manufacturing sector is a major component of the economy. Investors use the factory orders report to attempt to determine the direction of the economy in the future. Orders are generally believed to be a precursor to activity in the manufacturing sector because manufacturing typically has an order before considering an increase in production. Conversely, a decrease in orders eventually causes production to scale back; otherwise, the manufacturer accumulates inventories, which must be financed.

Total factory orders break down to approximately 55% durable and 45% non-durable. Durable goods are items such as refrigerators, cars, and aircraft. Non-durables are items such as cigarettes, candy, and soap. The report is often dismissed due to the timing of the release. Durable goods orders are typically reported a week earlier making a portion of the factory orders data “old news.” While some analysts dismiss the value of the factory orders data others point out the fact that the report provides a more complete picture than the initial durable goods release. Revisions to initial data along with non-durable figures are factored in providing a more accurate look at the condition of the manufacturing sector.

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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.
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  • 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