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MIG Market Watch, May 31st 2021

MIG Market Watch, May 31st 2021


MIG Market Watch, May 31st 2021
Market Comment

Mortgage bond prices finished the week higher which helped rates improve slightly. We started the week on a positive note with solid gains Monday afternoon into Tuesday morning. Inflation fears reappeared Wednesday afternoon and Thursday morning which erased a lot of the earlier improvements. The data was mixed. The FHFA house price index rose 1.4% as expected. New home sales were 863K vs 975K. Consumer confidence was 117.2 vs 118.5. Durable goods rose 1% vs 0.8%. Weekly jobless claims were 406K vs 425K. GDP rose 6.4% vs the expected 6.5% increase. Personal income fell 13.1% vs the expected 14.1% decline. Spending rose 0.5% as expected. PCE inflation rose 0.6% as expected. Consumer sentiment was 82.9 vs 83.1. Mortgage interest rates finished the week better by approximately 1/8 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Memorial Day Monday, May 31 Important. No trading Monday but there could be volatility the following day as trading resumes after the extended weekend.
ISM Index Tuesday, June 1,
10:00 am, et
60.8 Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
Construction Spending Tuesday, June 1,
10:00 am, et
Up 1.1% Low importance. An indication of economic strength. Significant weakness may lead to lower rates.
ADP Employment Thursday, June 3,
8:30 am, et
545K Important. An indication of employment. Weakness may bring lower rates.
Weekly Jobless Claims Thursday, June 3,
8:30 am, et
405K Important. An indication of employment. Higher claims may result in lower rates.
Employment Friday, June 4,
8:30 am, et
5.9%,
Payrolls +600K
Very important. An increase in unemployment or weakness in payrolls may bring lower rates.
Factory Orders Friday, June 4,
10:00 am, et
Up 1.3% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.

ISM Index

In conducting this survey, the ISM questions purchasing executives from over 250 industrial companies compiling data on production, orders, commodity prices, inventories, vendor performance, and employment. Each of the respondents is asked to rank the categories as “up” or “down.” Various weights are applied to the individual components to form the composite index. A composite index reading of 50 can be thought of as a “swing point.” A reading above50 implies an increase in economic activity, while a reading below 50 indicates a decline. The ISM report is difficult for economists to forecast because there is little data upon which to base an educated guess. The report has a large “surprise factor” and can cause market swings. Be cautious heading into the release.

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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.
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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