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MIG Market Watch, November 23rd, 2020

MIG Market Watch, November 23rd, 2020


MIG Market Watch, November 23rd, 2020

MARKET COMMENT

Mortgage bond prices finished the week higher which put downward pressure on rates. We started the week on a positive note and held steady until the end. The Fed remained the dominant force with billion-dollar MBS purchases daily. Global financial markets were buoyed by reports of coronavirus vaccines with efficacy rates of 90% and above. The data was mixed. There was some weakness on the consumer front with retail sales up 0.3% vs the expected 0.5% increase. Production rose 1.1% vs 1.5% and capacity use was 72.8% vs 72.5%. Weekly jobless claims were 742K vs the expected 725K. The Philadelphia Fed report was 26.3 vs the expected 22. Existing home sales were 6.85M vs 6.5M. Mortgage interest rates finished the week better by approximately 1/4 to 3/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
FHFA House Price Index Tuesday, Nov. 24,
10:00 am, et
Up 1.4% Moderately Important. A measure of single-family house prices. Weakness may lead to lower rates.
Consumer Confidence Tuesday, Nov. 24,
10:00 am, et
98.0 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Durable Goods Orders Wednesday, Nov. 25,
8:30 am, et
Up 0.4% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
PCE Core Inflation Wednesday, Nov. 25,
8:30 am, et
Up 0.1% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
Personal Income and Outlays Wednesday, Nov. 25,
8:30 am, et
Up 0.4%,
Up 0.7%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
Weekly Jobless Claims Wednesday, Nov. 25,
8:30 am, et
742K Important. An indication of employment. Higher claims may result in lower rates.
New Home Sales Wednesday, Nov. 25,
10:00 am, et
970K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Wednesday, Nov. 25,
10:00 am, et
78.0 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Durable Goods Orders
Durable goods orders are generally believed to be a precursor of activity in the manufacturing sector because manufacturing must have an order before considering an increase in production. Conversely, a decrease in orders eventually causes production to be scaled back; otherwise, the manufacturer accumulates inventories, which must be financed. Unfortunately, durable goods order data has many drawbacks. The first problem with the order data is that they are extremely volatile. The volatility of the data usually is attributed to the civilian aircraft and defense components of the figure. For example, if Boeing has a big order for one of its jumbo jets, the civilian aircraft category can change by $3-4 billion. The same scenario is evident when an aircraft carrier is ordered, surges in the defense category result. The second problem with the data is that orders are continuously being revised. Be cautious heading into the data.

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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.
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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