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MIG Market Watch, August 23, 2021

MIG Market Watch, August 23, 2021


MIG Market Watch, August 23, 2021
Market Comment

Mortgage bond prices finished the week slightly higher which helped rates improve. We started on a positive note Monday morning as stocks were weaker. Some of the improvements were erased as MBS selling pressure emerged late Monday afternoon and continued into Tuesday. The data was mixed. Retail sales fell 1.1% vs an expected 0.1% increase. Industrial production rose 0.9% vs 0.4%. Capacity use was 76.1 vs 75.7%. NAHB housing was 75.0 vs 81.0. Housing starts were 1534K vs 1600K. The Philadelphia Fed index was 19.4 vs 23. LEI rose 0.9% vs 0.8%. Weekly jobless claims were 348K vs the expected 370K. Mortgage interest rates finished the week unchanged to better by 1/8 of a discount point despite some choppy trading mid-week.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Existing Home Sales Monday, Aug. 23,
10:00 am, et
5.86M Low importance. An indication of mortgage credit demand. Significant weakness may lead to lower rates.
New Home Sales Tuesday, Aug. 24,
10:00 am, et
675K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
Durable Goods Orders Wednesday, Aug. 25,
8:30 am, et
Up 0.2% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Q2 GDP Thursday, Aug. 26,
8:30 am, et
Up 6.1% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Aug. 26,
8:30 am, et
Up 6.1% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
PCE Core Inflation Friday, Aug. 27,
8:30 am, et
Up 0.4% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
Personal Income and Outlays Friday, Aug. 27,
8:30 am, et
Up 0.2%,
Up 1.1%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, Aug. 27,
10:00 am, et
70.4 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Fed Outlook

The Federal Reserve provided insight into future MBS purchases. The latest minutes from their last meeting detailed, “Looking ahead, most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year because they saw the Committee’s “substantial further progress” criterion as satisfied with respect to the price-stability goal and as close to being satisfied with respect to the maximum-employment goal. Various participants commented that economic and financial conditions would likely warrant a reduction in coming months. Several others indicated, however, that a reduction in the pace of asset purchases was more likely to become appropriate early next year because they saw prevailing conditions in the labor market as not being close to meeting the Committee’s “substantial further progress” standard or because of uncertainty about the degree of progress toward the price-stability goal. Participants agreed that the Committee would provide advance notice before making changes.”

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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