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MIG Market Watch, September 14th, 2020

MIG Market Watch, September 14th, 2020


MIG Market Watch, September 14th, 2020

MARKET COMMENT
Mortgage bond prices finished the week slightly lower which put a little upward pressure on rates. Rates were generally flat the beginning of the week but saw some sharp upward movement Wednesday afternoon and into Thursday morning. Fortunately, the Fed MBS buying continued and stemmed much of the selling pressure. Producer prices rose 0.3% vs the expected 0.2% increase. The core, which excludes volatile food and energy, rose 0.4% vs 0.2%. Consumer inflation readings echoed the producer report. The consumer price index rose 0.4% vs the expected 0.3% increase. The core rose 0.4% vs 0.2%. Weekly jobless claims were 884K. Analysts expected a reading of 810K. Mortgage interest rates finished the week unchanged to worse by approximately 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Industrial Production Tuesday, Sept. 15,
9:15 am, et
Up 0.8% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization Tuesday, Sept. 15,
9:15 am, et
71.2% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
20-year Treasury Bond Auction Tuesday, Sept. 15,
1:15 pm, et
None Important. Bonds will be auctioned. Strong demand may lead to lower mortgage rates.
Retail Sales Wednesday, Sept. 16,
8:30 am, et
Up 1.1% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
NAHB Housing Index Wednesday, Sept. 16,
10:00 am, et
78 Moderately Important. A measure of single-family housing. Weakness may lead to lower mortgage rates.
Fed Meeting Adjourns Wednesday, Sept. 16,
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.
Housing Starts Thursday, Sept. 17,
8:30 am, et
1.48M Important. A measure of housing sector strength. Weakness may lead to lower rates.
Philadelphia Fed Survey Thursday, Sept. 17,
10:00 am, et
35 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Friday, Sept. 18,
10:00 am, et
76 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Leading Economic Indicators Friday, Sept. 18,
10:00 am, et
Up 1.2% Important. An indication of future economic activity. A smaller increase may lead to lower rates.

INFLATION READINGS
The Federal Reserve prepped the financial markets a few weeks ago with a revision to their inflation guidelines and rates spiked higher surrounding that announcement. Last week the inflation readings on the producer and consumer sides came in higher than expected. Inflation, real or perceived, erodes the value of fixed income securities such as mortgage-backed securities. In the short-term the Fed’s MBS purchases have mortgage interest rates at historical lows. Continued elevated inflation readings could eventually put upward pressure on 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.
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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