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MIG Market Watch, January 4th, 2021

MIG Market Watch, January 4th, 2021


MIG Market Watch, January 4th, 2021

MARKET COMMENT
Mortgage bond prices finished the week higher which recovered the losses from the prior week. Rates gradually creeped positive throughout most of the week in a slow and steady manner. The passage of another round of stimulus spending resulted in positive stock movements most of the week. Continued billion-dollar Fed MBS purchases helped mortgage rates remain historically favorable. There was not much data and thin trading conditions dominated surrounding the holidays. Weekly jobless claims were 787K vs the expected 790K. Continuing claims were 5.219M vs the expected 5.390M. Mortgage interest rates finished the week better by approximately 1/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Construction Spending Monday, Jan. 4,
10:00 am, et
Up 0.9% Low importance. An indication of economic strength. Significant weakness may lead to lower rates.
ISM Index Tuesday, Jan. 5,
10:00 am, et
56.5 Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
Factory Orders Wednesday, Jan. 6,
10:00 am, et
Up 0.7% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Jan. 7,
8:30 am, et
855K Important. An indication of employment. Higher claims may result in lower rates.
Trade Data Thursday, Jan. 7,
8:30 am, et
$64.2B deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
Employment Friday, Jan. 8,
8:30 am, et
6.8%,
Payrolls +100K
Very important. An increase in unemployment or weakness in payrolls may bring lower rates.
Consumer Credit Friday, Jan. 8,
3:00 pm, et
$9.2B Low importance. A significantly large increase may lead to lower mortgage interest rates.

YEAR AHEAD
The future of the economy will continue to be debated. The recent data, Fed statements, and Fed action clearly signal continued low mortgage rates. The biggest concern recently has been the extreme stock strength and potential bubbles in stocks and housing. Stocks extended record highs and some analysts anticipate additional surges in the months ahead. However, the possibility for bumps along the way are real. Trade tensions between the US and China are expected to simmer as the new US Administration takes office.

The positive for us is that the Fed is clear that they want to keep rates low this year. Their most recent statement indicated the “Committee 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 until substantial further progress has been made toward the Committee’s maximum employment and price stability goals. These asset purchases help foster smooth market functioning and accommodative financial conditions, thereby supporting the flow of credit to households and businesses.”

Now is a great time to take advantage of these historically favorable rates as the Fed also noted they are “prepared to adjust the stance of monetary policy as appropriate if risks emerge.”

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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