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MIG Market Watch, October 12th, 2020

MIG Market Watch, October 12th, 2020


MIG Market Watch, October 12th, 2020

MARKET COMMENT
Mortgage bond prices finished the week lower which put upward pressure on rates. Rates were higher the beginning and end of the week with only a slight reprieve Thursday morning. News reports focused on additional stimulus talks between Congress and the US Administration. Stocks reacted strongly both negatively and positively to various developments on that front. The Fed minutes indicated “Housing-sector activity continued to expand, likely supported by the effects of low interest rates.” There were few data releases. The trade deficit was $67.1B vs the expected $66.2B. Weekly jobless claims were 840K vs 830K. The data did not move rates. Mortgage interest rates finished the week worse by approximately 1/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Price Index Tuesday, Oct. 13,
8:30 am, et
Up 0.2%,
Core up 0.2%
Important. An indication of inflationary pressures at the consumer level. Weaker figures may lead to lower rates.
Producer Price Index Wednesday, Oct. 14,
8:30 am, et
Up 0.3%,
Core up 0.2%
Important. A measure of inflation at the producer level. Weaker figures may lead to lower rates.
Weekly Jobless Claims Thursday, Oct. 15,
8:30 am, et
840K Important. An indication of employment. Higher claims may result in lower rates.
Philadelphia Fed Survey Thursday, Oct. 15,
10:00 am, et
42 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Retail Sales Friday, Oct. 16,
8:30 am, et
Up 0.8% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Industrial Production Friday, Oct. 16,
9:15 am, et
Up 0.4% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization Friday, Oct. 16,
9:15 am, et
71.3% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
U of Michigan Consumer Sentiment Friday, Oct. 16,
10:00 am, et
81.0 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

PHILADELPHIA FED
Federal Reserve Banks were created to control the central banking system of the United States. The banks are divided into 12 districts and facilitate the monetary system by moving currency in and out of circulation in accordance with the policies set by the Federal Open Market Committee. The Reserve Banks handle check processing, hold cash reserves, and make loans to depository institutions. Each Reserve Bank regulates commercial banks in their district. The twelve districts include Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. The Philadelphia Fed report is a survey of manufacturing businesses in the Northeast region. The report is valuable due to the timing. It is released before the month is over and is the second regional report released. While there are many other regional reports throughout the month the Philadelphia Fed report is considered the most valuable. It has historically shown strong correlation with purchasing managers index data and therefore analysts give it considerable attention.

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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