Translate:

EN

MIG Market Watch, August 30th, 2021

MIG Market Watch, August 30th, 2021


MIG Market Watch, August 30th, 2021
Market Comment

Mortgage bond prices finished the week slightly lower which put upward pressure on rates. Rates were worse Monday morning as stocks showed strength. Those losses were reversed Tuesday morning, but the positive movements were short-lived as selling reignited Tuesday afternoon. The housing data was mixed. Existing home sales were 5.99M vs 5.82M. New home sales were weaker than expected at 680K vs 700K. Durable goods orders fell 0.1% vs the expected 0.3% decline. Weekly jobless claims were 353K vs 350K. GDP rose 6.6% vs 6.7%. Core PCE prices rose 0.3% as expected. Income rose 1.1% vs 0.2%. Spending rose 0.3% as expected. Sentiment was 70.3 vs 70.5. 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
FHFA House Price Index Tuesday, Aug. 31,
10:00 am, et
Up 1.7% Moderately Important. A measure of single-family house prices. Weakness may lead to lower rates.
Consumer Confidence Tuesday, Aug. 31,
10:00 am, et
122 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
ISM Index Wednesday, Sept. 1,
10:00 am, et
51.4 Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
Revised Q2 Productivity Thursday, Sept. 2,
8:30 am, et
Up 2.4% Important. A measure of output per hour. Improvement may lead to lower mortgage rates.
Trade Data Thursday, Sept. 2,
8:30 am, et
$75.1B deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
Weekly Jobless Claims Thursday, Sept. 2,
8:30 am, et
350K Important. An indication of employment. Higher claims may result in lower rates.
Factory Orders Thursday, Sept. 2,
10:00 am, et
Up 1.1% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Employment Friday, Sept. 3,
8:30 am, et
5.2%,
Payrolls +763K
Very important. An increase in unemployment or weakness in payrolls may bring lower rates.

Oil and Gas Prices

U.S. consumers benefitted from relatively tame oil and gas prices for some time. In the early 2000s consumers enjoyed low gas prices with a barrel of oil around $20. By the summer of 2008 oil prices hit all-time highs with prices over $140 a barrel and gas prices rose accordingly. Only a few years ago we were told that $100 a barrel was the new ‘normal.’ That all reversed and consumers once again benefitted from low prices. Some attributed the past highs to “peak oil” levels while others argued they were due to supply and demand. Others called it a “bubble” led by speculation and momentum trading. Whatever the cause, inflation fears tied to rising energy prices reignited recently as we saw oil prices hit $67 a barrel. Last week there were reports that attributed higher oil price levels to concerns that global instability could result in issues in oil-producing regions of the Middle East and Central Asia. In addition, the U.S. Energy Information Administration’s (EIA) reported that US crude inventories fell as overall fuel demand increased. The recent price spikes were tempered a little by a return of virus concerns. As more restrictions are implemented demand could decrease but continued volatility is likely.

Share

Leave a comment

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