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MIG Market Watch, September 13th, 2020

MIG Market Watch, September 13th, 2020


MIG Market Watch, September 13th, 2020

MARKET COMMENT
Mortgage bond prices finished the week near unchanged which kept rates flat. There were very few economic releases early in the week. The Fed Beige Book indicated, “economic growth downshifted slightly to a moderate pace in early July through August. All Districts continued to report rising employment overall, and inflation was reported to be steady at an elevated pace, as half of the Districts characterized the pace of price increases as strong, while half described it as moderate. Several Districts indicated that businesses anticipate significant hikes in their selling prices in the months ahead.” Weekly jobless claims were 310K vs 337K. Producer prices rose 0.7% vs 0.6%. The core, which excludes food and energy prices, rose 0.6% vs 0.5%. Mortgage interest rates finished the week with discount points almost unchanged.

LOOKING AHEAD

Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Price Index Tuesday, Sept. 14,
8:30 am, et
Up 0.4%,
Core up 0.3%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Industrial Production Wednesday, Sept. 15,
9:15 am, et
Up 0.4% Important. A measure of manufacturing sector strength. A lower-than-expected increase may lead to lower rates.
Capacity Utilization Wednesday, Sept. 15,
9:15 am, et
76.3% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Weekly Jobless Claims Thursday, Sept. 16,
8:30 am, et
345K Important. An indication of employment. Higher claims may result in lower rates.
Philadelphia Fed Survey Thursday, Sept. 16,
8:30 am, et
33.1 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Retail Sales Thursday, Sept. 16,
8:30 am, et
Down 0.7% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, Sept. 17,
10:00 am, et
70.2 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

CONSUMER PRICE INDEX

The Consumer Price Index is widely accepted as the most important measure of inflation. The CPI is a measure of prices at the consumer level for a fixed basket of goods and services. The National Statistics Office and the Bureau of Agricultural Statistics of the Department of Agriculture collect price data for the computation of the CPI. Since it is an index number, it compares the level of prices to a base period. By comparing the level of the index at two different points in time, analysts can determine how much prices have risen in that period.

Unlike other measures of inflation, which only factor domestically produced goods; the CPI takes into account imported goods as well. This is important due to the ever-increasing reliance of the US economy upon imported goods. Analysts primarily focus on the core rate of theCPI which factors out the more volatile food and energy prices. Oil prices are always a concern from an inflation perspective. Inflation, real or perceived, erodes the value of fixed income securities such as mortgage bonds.

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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