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MIG Market Watch, June 7th 2021

MIG Market Watch, June 7th 2021


MIG Market Watch, June 7th 2021
Market Comment

Mortgage bond prices finished the week near unchanged which held rates relatively steady. There was volatility throughout the week, but it was within a narrow range. We started the week on a negative note Tuesday morning with a slight increase in rates. The Fed continued their multi-billion-dollar daily MBS purchases which helped counter the selling pressure. The data was mixed. Construction spending rose 0.2% as expected. ISM Index was 61.2 vs the expected 61%. ADP employment surged higher with a reading of 978K vs the expected 700K. Weekly jobless claims were 385K vs the expected 390K. The employment report showed two very different pictures (read below.) Factory orders fell 0.6% vs the expected 0.5% increase. Mortgage interest rates finished the week unchanged to better by approximately 1/8 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Credit Monday, June 7,
3:00 pm, et
$25.8B Low importance. A significantly large increase may lead to lower mortgage interest rates.
Trade Data Tuesday, June 8,
8:30 am, et
$75.5B deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
3-year Treasury Note Auction Tuesday, June 8,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
10-year Treasury Note Auction Wednesday, June 9,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Consumer Price Index Thursday, June 10,
8:30 am, et
Up 0.8%,
Core up 0.9%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Weekly Jobless Claims Thursday, June 10,
8:30 am, et
387K Important. An indication of employment. Higher claims may result in lower rates.
30-year Treasury Bond Auction Thursday, June 10,
1:15 pm, et
None Important. Bonds will be auctioned. Strong demand may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, June 11,
10:00 am, et
82.8 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Employment Results

The Bureau of Labor Statistics released the employment report for May last Friday. The data showed very different pictures of the labor market. The headline figure showed unemployment at 5.8% versus the expected 5.9%. On the surface this is positive for the economy. However, the payrolls component of the report was weaker than expected. Payrolls rose 559K vs the expected 650K increase. Payrolls often get more attention from market participants. Average hourly earnings were higher than expected with a 0.5% increase vs 0.2%. This is a signal of potential wage inflation and will have the attention of Fed members going forward.

The divergence in the data is not uncommon due to the fact that the “Bureau of Labor Statistics (BLS) has two monthly surveys that measure employment levels and trends: the Current Population Survey (CPS), also known as the household survey, and the Current Employment Statistics (CES) survey, also known as the payroll or establishment survey. Both surveys are needed for a complete picture of the labor market.”

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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.

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  • Rates are subject to change at any time.
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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