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MIG Market Watch, May 16th, 2022

MIG Market Watch, May 16th, 2022


MIG Market Watch, May 16th, 2022
Market Comment

Mortgage bond prices finished the week slightly higher which helped rates improve. Trading was very volatile with large movements throughout the week. Inflation readings remained historically elevated but were mixed in comparison to expectations. The Consumer Price Index rose 0.3% vs 0.2%. The core rose 0.6% vs 0.5%. The year over year core rose 6.2% vs 6%. Producer prices rose 0.5% as expected. The core rose 0.4% vs 0.6%. Year over year core prices rose 8.8% vs 8.9%. Consumer sentiment was 59.1 vs 63. Stocks experienced wild swings with heavy selling pressure most of the week. The Fed continued their daily MBS reinvestments which helped rates improve slightly. Mortgage interest rates finished the week better by approximately 1/4 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Retail Sales Tuesday, May 17,
8:30 am, et
Up 0.7% Important. A measure of consumer demand. A smaller than expected increase may lead to lower mortgage rates.
Industrial Production Tuesday, May 17,
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 Tuesday, May 17,
9:15 am, et
78.6% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
Business Inventories Tuesday, May 17,
10:00 am, et
Up 1.8% Low importance. An indication of stored-up capacity. A significantly larger increase may lead to lower rates.
NAHB Housing Index Tuesday, May 17,
10:00 am, et
76 Moderately Important. A measure of single-family housing. Weakness may lead to lower mortgage rates.
Housing Starts Wednesday, May 18,
8:30 am, et
1.783M Important. A measure of housing sector strength. Weakness may lead to lower rates.
Philadelphia Fed Survey Thursday, May 19,
10:00 am, et
17.2 Moderately important. A survey of business conditions in the Northeast. Weakness may lead to lower rates.
Leading Economic Indicators Thursday, May 19,
10:00 am, et
Up 0.3% Important. An indication of future economic activity. A smaller increase may lead to lower rates.

Powell 2nd Term

The Senate voted last week to give Chairman Powell a second term as the head of the Federal Open Market Committee. The Committee faces significant challenges ahead as the economy rebounds from the pandemic amid escalating inflation fears and global instability. The latest inflation readings show prices exceeded 8% on a yearly basis. These are levels not seen since the early 1980s. Inflation was near 14.5 percent, and unemployment was over 7.5 percent during that time.

The Fed stated last week, “Promoting financial stability is a key element in meeting the Federal Reserve’s dual mandate for monetary policy regarding full employment and stable prices. In an unstable financial system, adverse events are more likely to result in severe financial stress and disrupt the flow of credit, leading to high unemployment and great financial hardship.” Most senators (80-19 vote) believe that Powell’s continuation as head will provide some of the stability needed during these uncertain times. All agree that there are many challenges ahead.

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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