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MIG Market Watch, April 5th, 2021

MIG Market Watch, April 5th, 2021


MIG Market Watch, April 5th, 2021
Market Comment

Mortgage bond prices finished the week lower which put upward pressure on rates. Rates improved slightly Tuesday and Wednesday but saw some heavy selling pressure Friday morning. Most of the data was solid. The stronger than expected payrolls component of the employment report erased the earlier improvements. Unemployment was 6% as expected. However, payrolls rose 916K vs the expected 647K. The FHFA house price index rose 1.0% as expected. Consumer confidence was 109.7 vs 97. ADP employment was 517K vs the expected 500K. Weekly jobless claims were higher than expected at 719K vs 696K. ISM index was 64.7% vs 61.5%. Mortgage interest rates finished the week worse by approximately 1/8 to 1/4 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Factory Orders Monday, April 5,
10:00 am, et
Down 0.5% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Trade Data Wednesday, April 7,
8:30 am, et
$68.4B deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
Consumer Credit Wednesday, April 7,
3:00 pm, et
$5.45B Low importance. A significantly large increase may lead to lower mortgage interest rates.
Fed Minutes Wednesday, April 7,
2:00 pm, et
None Important. Details of the last Fed meeting will be thoroughly analyzed.
Weekly Jobless Claims Thursday, April 8,
8:30 am, et
708K Important. An indication of employment. Higher claims may result in lower rates.
Producer Price Index Friday, April 9,
8:30 am, et
Up 0.5%,
Core up 0.3%
Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.

Fed Structure

The Federal Open Market Committee (FOMC) consists of twelve members–the seven members of the Board of Governors of the Federal Reserve System who are appointed by the President to staggered 14-year terms; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis. The rotating seats are filled from the following four groups of Banks, one Bank president from each group: Boston, Philadelphia, and Richmond; Cleveland and Chicago; Atlanta, St. Louis, and Dallas; and Minneapolis, Kansas City, and San Francisco. Nonvoting Reserve Bank presidents attend the meetings of the Committee, participate in the discussions, and contribute to the Committee’s assessment of the economy and policy options.

The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth. The Fed members are not required to serve all 14 years, and some retire or resign early as we have seen lately. Jerome Powell took over as chair for Janet when she retired despite her appointment extending into 2024. The makeup of the Fed is important because it is the most powerful financial institution in the world and is a huge factor in 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