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MIG Market Watch, July 27th, 2020

MIG Market Watch, July 27th, 2020


MIG Market Watch, July 27th, 2020

MARKET COMMENT
Mortgage bond prices finished the week near unchanged to slightly higher which kept rates relatively flat. Trading was quiet throughout most of the week with some slight weakness Thursday afternoon. European leaders agreed to a historic 1.85 trillion-euro budget and coronavirus rescue package after five days of talks in Brussels. European and US Stocks generally reacted favorably to the announcement but saw selling the latter portion of the week. The FHFA housing index fell 0.3% vs the expected unchanged reading. Existing home sales were 4.72M vs the expected 4.7M. Weekly jobless claims were 1.416M vs 1.31M. New home sales were 776K vs 680K. Mortgage interest rates finished the week near unchanged to better by approximately 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Durable Goods Orders Monday, July 27,
8:30 am, et
Up 6.2% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Consumer Confidence Tuesday, July 28,
10:00 am, et
96.3 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Fed Meeting Adjourns Wednesday, July 29,
2:15 pm, et
No rate changes Important. Few expect the Fed to change rates, but some volatility may surround the adjournment of this meeting.
Weekly Jobless Claims Thursday, July 30,
8:30 am, et
1.36M Important. An indication of employment. Higher claims may result in lower rates.
Q2 GDP Thursday, July 30,
8:30 am, et
Down 3.5% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Personal Income and Outlays Friday, July 31,
8:30 am, et
Up 0.3%,
Up 5.1%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, July 31,
8:30 am, et
Up 0.2% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
Q2 Employment Cost Index Friday, July 31,
8:30 am, et
Up 0.7% Very important. A measure of wage inflation. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Friday, July 31,
10:00 am, et
73.2 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

FED MEETING
There is little debate that the Federal Reserve will keep rates unchanged at the meeting this week. The Fed has done a solid job the past few months stabilizing the mortgage-backed securities market through their daily MBS purchases. They have successfully helped mortgage interest rates decrease at a slow and steady pace.

The big takeaway from the meeting this week will be any forward guidance the Fed provides. Mortgage interest rates are historically low but economic weakness, unemployment, and looming mortgage delinquencies have many people concerned. The Fed will likely point to the coronavirus and uncertainty ahead. Positive or negative developments regarding the virus could cause the Fed to adjust course rapidly. Now is a great time to take advantage of the favorable 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