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MIG Market Watch, February 8th, 2021

MIG Market Watch, February 8th, 2021


MIG Market Watch, February 8th, 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 flat Monday but turned negative Tuesday. The data was mixed. ISM index was 58.7% vs the expected 61%. ADP employment rose 175K vs the expected 55K increase. Weekly jobless claims were 779K vs the expected 825K. Preliminary Q4 productivity fell 4.8% vs the expected 2.8% decrease. Factory orders rose 1.1% vs the expected 0.7% increase. The employment report was mixed. The headline unemployment rate surprised to the downside with a rate of 6.3% vs the expected 6.7%. However, the payrolls portion was relatively in line with estimates at 49K vs 50K. Mortgage interest rates finished the week worse by approximately 1/8 of a discount point.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
3-year Treasury Note Auction Tuesday, Feb. 9,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Consumer Price Index Wednesday, Feb. 10,
8:30 am, et
Up 0.3%,
Core up 0.2%
Important. A measure of inflation at the consumer level. Lower than expected increases may lead to lower rates.
10-year Treasury Note Auction Wednesday, Feb. 10,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Weekly Jobless Claims Thursday, Feb. 11,
8:30 am, et
850K Important. An indication of employment. Higher claims may result in lower rates.
30-year Treasury Bond Auction Thursday, Feb. 11,
1:15 pm, et
None Important. Bonds will be auctioned. Strong demand may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, Feb. 12,
10:00 am, et
79 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

 

GLOBALIZATION
Economic globalization is the increasing interdependence of national economies through trade, finances, and technology. While economists debate the pros and cons of globalization, the fact remains that globalization is not new and continues to expand.

As a driving force in the global economy, the US often benefits when foreign economies struggle. Investors often move funds to safe havens in what is called a “flight to quality” in uncertain times. US debt instruments saw an influx of foreign investment historically amid concerns of nations defaulting on their debt and various banking institutions struggling. Bond prices rose, which caused mortgage interest rates to fall. From a short-term perspective it was great for U.S. homebuyers and those refinancing if they took advantage of the decrease in rates. However, what goes up often comes down. We have historically witnessed times when that pattern reverses. An example is when investors move back into the Eurozone from buying US debt instruments.

Nobody can say with certainty how it will all play out. Fortunately, the Fed’s effort to buy mortgage bonds and keep rates low has worked. The Fed continues to state the goal of maintaining the low interest rate environment. However, they have also noted that they would like inflation to increase slowly over time. As a result, we should expect continued mortgage interest rate volatility. Now is a great time to take advantage of rates at these historically favorable levels.

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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