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MIG Market Watch, September 21st, 2020

MIG Market Watch, September 21st, 2020


MIG Market Watch, September 21st, 2020

MARKET COMMENT
Mortgage bond prices finished the week slightly lower which put a little upward pressure on rates. Selling pressure pushed rates higher through most of the week but the Fed buffered some of the losses with their MBS purchases. The data was mixed. Industrial production rose 0.4% vs the expected 1.3% increase. Capacity use was 71.4% vs 72%. Retail sales rose 0.6% vs the expected 1% increase. The NAHB Housing index was 83 vs 78. Housing starts were 1416K vs the expected 1489K. Jobless claims were 860K vs 830K. The Philadelphia Fed business conditions index was solid report with a reading of 15.0 vs the expected 13.0 mark. Consumer sentiment was 78.9 vs 77 and LEI rose 1.2% vs 1.4%. Mortgage interest rates finished the week worse by approximately 1/8 to 1/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Existing Home Sale Tuesday, Sept. 22,
10:00 am, et
5.95M Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates.
2-year Treasury Note Auction Tuesday, Sept. 22,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
FHFA House Price Index Wednesday, Sept. 23,
10:00 am, et
Up 1.4% Moderately Important. A measure of single-family house prices. Weakness may lead to lower rates.
5-year Treasury Note Auction Wednesday, Sept. 23,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Weekly Jobless Claims Thursday, Sept. 24,
8:30 am, et
885K Important. An indication of employment. Higher claims may result in lower rates.
New Home Sales Thursday, Sept. 24,
10:00 am, et
875K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
7-year Treasury Note Auction Thursday, Sept. 24,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Durable Goods Orders Friday, Sept. 25,
8:30 am, et
Up 1.5% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.

FED STATEMENT
“The Federal Reserve is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.

The COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have picked up in recent months but remain well below their levels at the beginning of the year. Weaker demand and significantly lower oil prices are holding down consumer price inflation.

The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”

Fed Chair Powell said, “Effectively, we’re saying rates will remain highly accommodative until the economy is far along in its recovery.” The latest survey of Fed members anticipates no Fed rate adjustments until 2023.

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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