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MIG Market Watch, February 1st, 2021

MIG Market Watch, February 1st, 2021


MIG Market Watch, February 1st, 2021

MARKET COMMENT
Mortgage bond prices finished the week near unchanged to slightly lower which put a little upward pressure on rates. The market started on a neutral note Monday, moved positive Tuesday, and then saw steady selling pressure the remainder of the week. The Fed left rates unchanged and indicated they “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.” Inflation fears were fanned a little Friday morning as Core PCE prices rose 0.3% vs the expected 0.1% increase. Mortgage interest rates finished the week unchanged to worse by approximately 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
ISM Index Monday, Feb. 1,
10:00 am, et
59.5 Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
Construction Spending Monday, Feb. 1,
10:00 am, et
Up 0.8% Low importance. An indication of economic strength. Significant weakness may lead to lower rates.
ADP Employment Wednesday, Feb. 3,
8:30 am, et
40K Important. An indication of employment. Weakness may bring lower rates.
Weekly Jobless Claims Thursday, Feb. 4,
8:30 am, et
850K Important. An indication of employment. Higher claims may result in lower rates.
Preliminary Q4 Productivity Thursday, Feb. 4,
8:30 am, et
Down 2.8% Important. A measure of output per hour. Improvement may lead to lower mortgage rates.
Factory Orders Thursday, Feb. 4,
10:00 am, et
Up 0.6% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Employment Friday, Feb. 5,
8:30 am, et
6.8%,
Payrolls +20K
Very important. An increase in unemployment or weakness in payrolls may bring lower rates.
Trade Data Friday, Feb. 5,
8:30 am, et
$66B deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
Consumer Credit Friday, Feb. 5,
3:00 pm, et
$12.1B Low importance. A significantly large increase may lead to lower mortgage interest rates.

YELLEN
Former Federal Reserve Chair Janet Yellen was sworn in as the Secretary of the Treasury January 26, 2021. According to the US Department of Treasury website, she is “the first person to have served as Treasury Secretary, Chair of the Council of Economic Advisers, and Chair of the Federal Reserve.” The site notes, “The Secretary of the Treasury is the principal economic advisor to the President and plays a critical role in policy-making by bringing an economic and government financial policy perspective to issues facing the government. The Secretary is responsible for formulating and recommending domestic and international financial, economic, and tax policy, participating in the formulation of broad fiscal policies that have general significance for the economy, and managing the public debt.” Yellen is a key economic figure as we navigate the challenges ahead.

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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