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MIG Market Watch, January 11th, 2021

MIG Market Watch, January 11th, 2021


MIG Market Watch, January 11th, 2021

MARKET COMMENT
Mortgage bond prices finished the week sharply lower which pushed rates higher. We started the week neutral but experienced higher rates Tuesday through Friday. News articles attributed weakness across the entire spectrum of debt securities on anticipation of increased government spending tied to election outcomes. The data was mixed. ADP payrolls fell 123K vs the expected 60K addition. Factory orders rose 1% vs the expected 0.7% increase. Construction spending rose 0.9% which was near expectations. The ISM Index came in at 60.7% vs the expected 56.7%. Jobless claims were 787K vs the expected 765K. Unemployment was 6.7% as expected. Payrolls fell 140K vs the expected 70K increase. Mortgage interest rates finished the week worse by approximately 5/8 to 3/4 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Price Index Wednesday, Jan. 13,
8:30 am, et
Up 0.4%,
Core up 0.2%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Fed “Beige Book” Wednesday, Jan. 13,
2:00 pm, et
None Important. This Fed report details current economic conditions across the US. Signs of weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Jan. 14,
8:30 am, et
780K Important. An indication of employment. Higher claims may result in lower rates.
Producer Price Index Friday, Jan. 15,
8:30 am, et
Up 0.3%,
Core up 0.2%
Important. An indication of inflationary pressures at the producer level. Lower figures may lead to lower rates.
Retail Sales Friday, Jan. 15,
8:30 am, et
Down 0.3% Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.
Industrial Production Friday, Jan. 15,
9:15 am, et
Up 0.3% Important. A measure of manufacturing sector strength. A lower than expected increase may lead to lower rates.
Capacity Utilization Friday, Jan. 15,
9:15 am, et
73.5% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Business Inventories Friday, Jan. 15,
10:00 am, et
Up 0.2% Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.
U of Michigan Consumer Sentiment Friday, Jan. 15,
10:00 am, et
81 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

FUNDAMENTAL DATA
Economic data is usually the number one reason mortgage interest rates move daily. While the Fed has taken a dominant role lately with their MBS purchases the data still can move the financial markets in the short-term. Data is compiled from numerous sources and comes in two flavors, economic growth and inflation. Some releases are more important than others and thus are more likely to cause wider swings in mortgage rates. Rates move in relation to the deviation from expectations. We have significant releases starting Wednesday. The potential for mortgage interest rate volatility is greater as a result. Any indication of strength in the data will likely result in higher mortgage interest rates.

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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