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MIG Market Watch, December 21st, 2020

MIG Market Watch, December 21st, 2020


MIG Market Watch, December 21st, 2020

MARKET COMMENT
Mortgage bond prices finished the week unchanged which helped rates remain relatively steady. Trading was choppy throughout the week despite ending the week flat. Rates were worse Monday morning as stocks surged higher that morning. Back and forth trading continued into Thursday. Rates were relatively flat Friday morning. Industrial production rose 0.4% as expected. Capacity use was 73.3% vs 72.9%. Retail sales fell 1.1% vs the expected unchanged reading. NAHB housing was 86 vs 88. Weekly jobless claims were 885K vs the expected 810K. Housing starts were 1547K vs 1540K. The Fed left rates unchanged and indicated it “will continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency mortgage-backed securities by at least $40 billion per month.” Mortgage interest rates finished the week near unchanged.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Q3 GDP Tuesday, Dec. 22,
8:30 am, et
Up 33.1% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Existing Home Sales Tuesday, Dec. 22,
10:00 am, et
Down 1.2% Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates.
Personal Income and Outlays Wednesday, Dec. 23,
8:30 am, et
Down 0.3%,
Up 0.3%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Wednesday, Dec. 23,
8:30 am, et
Up 0.2% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
FHFA House Price Index Wednesday, Dec. 23,
10:00 am, et
Up 1.7% Moderately Important. A measure of single-family house prices. Weakness may lead to lower rates.
New Home Sales Wednesday, Dec. 23,
10:00 am, et
988K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Wednesday, Dec. 23,
10:00 am, et
81.4 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Durable Goods Orders Thursday, Dec. 24,
8:30 am, et
Up 0.7% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Dec. 24,
8:30 am, et
855K Important. An indication of employment. Higher claims may result in lower rates.

INCOME & OUTLAYS
The personal income and outlays release is a monthly report issued by the Bureau of Economic Analysis (BEA). The data is important because it is thought to provide a solid indication of future consumer demand. The personal income component is primarily a measure of wages and salaries. The outlays component is primarily a measure of spending on goods and services. Together the figures provide analysts valuable insight into consumer economic standing and consumption. The report is closely watched as the consumer remains a vital component of the US economy. The release this week has the potential to move the financial markets.

Now is a good time to take advantage of mortgage interest rates at their current levels to avoid market volatility.

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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