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MIG Market Watch, July 13th, 2020

MIG Market Watch, July 13th, 2020


MIG Market Watch, July 13th, 2020

MARKET COMMENT
Mortgage bond prices finished the week higher which put downward pressure on rates. Rates were flat Monday morning but pushed lower that afternoon and generally all the way through Thursday. Some selling pressure emerged the last part of the week but not enough to erase the earlier improvements. The Fed remained the driver of rates with billion-dollar daily purchases of mortgage bonds. The Treasury auctions showed solid foreign demand. Stocks saw losses throughout a lot of the week but looked to close on a positive note Friday. The economic data was sparse and mixed. Weekly jobless claims were 1.314M vs the expected 1.37M. Producer prices were mixed (see below.) Mortgage interest rates finished the week better by approximately 3/8 to 1/2 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Price Index Tuesday, July 14,
8:30 am, et
Up 0.1%,
Core up 0.3%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Industrial Production Wednesday, July 15,
9:15 am, et
Up 4.1% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization Wednesday, July 15,
9:15 am, et
68% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Weekly Jobless Claims Thursday, July 16,
8:30 am, et
1.3M Important. An indication of employment. Higher claims may result in lower rates.
Philadelphia Fed Survey Thursday, July 16,
10:00 am, et
Down 23 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Retail Sales Thursday, July 16,
8:30 am, et
Up 4.4% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
NAHB Housing Index Thursday, July 16,
10:00 am, et
45 Moderately Important. A measure of single-family housing. Weakness may lead to lower mortgage rates.
Housing Starts Friday, July 17,
8:30 am, et
1.163M Important. A measure of housing sector strength. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Friday, July 17,
10:00 am, et
80 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

PRODUCER PRICES
The US Bureau of Labor statistics indicated “the Producer Price Index for final demand fell 0.2 percent in June, seasonally adjusted. This decrease followed a 0.4-percent increase in May and a 1.3-percent decline in April. On an unadjusted basis, the final demand index moved down 0.8 percent for the 12 months ended in June.

In June, the decrease in the final demand index is attributable to a 0.3-percent decline in prices for final demand services. In contrast, the index for final demand goods rose 0.2 percent. Prices for final demand less foods, energy, and trade services advanced 0.3 percent in June, the largest increase since a 0.3-percent rise in January. For the 12 months ended in June, prices for final demand less foods, energy, and trade services edged down 0.1 percent.”

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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