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MIG Market Watch, August 24th, 2020

MIG Market Watch, August 24th, 2020


MIG Market Watch, August 24th, 2020

MARKET COMMENT
Mortgage bond prices finished the week higher which put downward pressure on rates. Rates improved slightly Monday through Wednesday. We saw some selling pressure both Wednesday and Thursday afternoons into Friday morning. The 20 Year Treasury bond auction showed poor demand. The data was mixed. NAHB housing came in at 78 vs 74. Housing starts were 1496K vs the expected 1230K. Weekly jobless claims were 1.106M vs the expected 925K. Philadelphia Fed was 38.8 vs 21. Leading Economic Indicators rose 1.4% vs the expected 1.1% increase. Existing home sales rose 5.86M vs the expected 5.38M increase. Mortgage interest rates finished the week better by approximately 1/4 of a discount point despite the up and down trading.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
FHFA House Price Index Tuesday, Aug. 25,
10:00 am, et
Up 0.4% Moderately Important. A measure of single-family house prices. Weakness may lead to lower rates.
New Home Sales Tuesday, Aug. 25,
10:00 am, et
750K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
Consumer Confidence Tuesday, Aug. 25,
10:00 am, et
93.6 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Durable Goods Orders Wednesday, Aug. 26,
8:30 am, et
Up 3.2% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Aug. 27,
8:30 am, et
1.1M Important. An indication of employment. Higher claims may result in lower rates.
Q2 GDP Thursday, Aug. 27,
8:30 am, et
Down 32.5% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Personal Income and Outlays Friday, Aug. 28,
8:30 am, et
Down 0.3%,
Up 1.5%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, Aug. 28,
8:30 am, et
Up 1.1% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
U of Michigan Consumer Sentiment Friday, Aug. 28,
10:00 am, et
72.8 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

ADDED REFINANCE FEE
Fannie Mae and Freddie Mac recently announced an additional fee for borrowers that refinance mortgages. The 0.5% of the loan amount fee will result in an additional $1400 to $1500 on an average mortgage today. Freddie’s release stated, “As a result of risk management and loss forecasting precipitated by COVID-19 related economic and market uncertainty, we are introducing a new Market Condition Credit Fee in Price.”

Many mortgage industry professionals and consumer advocates are upset about the fee and are lobbying to prevent it before the September 1st implementation. Federal Housing Finance Agency Director Mark Calabria is being asked to step in and stop it. Calabria has pushed to end the U.S. Government control of the entities so there is doubt that he will intervene.

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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