MIG Market Watch, August 1st, 2022

MIG Market Watch, August 1st, 2022

MIG Market Watch, August 1st, 2022
Market Comment

Mortgage bond prices finished the week higher which helped rates improve. Trading remained volatile. Rates worsened ahead of the Fed meeting Wednesday. The Fed raised rates 75 basis points as expected. Data that signaled the economy is in a recession reversed the rate spikes seen earlier in the week. GDP fell 0.9% vs the expected 0.5% decrease. The rest of the data was mixed. FHFA housing prices rose 1.4% as expected. Consumer Confidence was 95.7 vs 95.6. New Home Sales were 590K vs 650K. Durable goods orders rose 1.9% vs the expected 0.2% decline. Weekly jobless claims were 256K vs 255K. Personal income rose 0.6% as expected. Spending rose 1.1% vs 0.9%. Core PCE prices rose 0.6% as expected. Employment cost index rose 1.3% vs 1.2%. Mortgage interest rates finished the week better by approximately 1/8 to 1/4 of a discount point.

Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Construction Spending Monday, Aug. 1,
10:00 am, et
Up 0.3% Low importance. An indication of economic strength. Significant weakness may lead to lower rates.
ISM Index Monday, Aug. 1,
10:00 am, et
52.9 Important. A measure of manufacturer sentiment. Weakness may lead to lower mortgage rates.
ADP Employment Wednesday, Aug. 3,
8:30 am, et
218K Important. An indication of employment. Weakness may bring lower rates.
Factory Orders Wednesday, Aug. 3,
10:00 am, et
Up 0.4% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Aug. 4,
8:30 am, et
245K Important. An indication of employment. Higher claims may result in lower rates.
Trade Data Thursday, Aug. 4,
8:30 am, et
$82.2B deficit Important. Affects the value of the dollar. A falling deficit may strengthen the dollar and lead to lower rates.
Employment Friday, Aug. 5,
8:30 am, et
Payrolls +255K
Very important. An increase in unemployment or weakness in payrolls may bring lower rates.

ADP Employment

The ADP employment report is a measure of employment derived from data of roughly 500,000 US businesses. The survey focuses on the private sector of the economy. In contrast, the Bureau of Labor Statistics releases the regular employment report which includes both private and government employment statistics.

The Fed is usually focused on inflation. Tightening employment conditions can result in wage inflation. The ADP report provides solid data on these conditions. Despite this, the data can still diverge from the regular employment report. The employment report is derived from a household survey and an establishment survey. These surveys often differ from one another and from the ADP employment report in that they are based on different data sets.

Rates remain volatile. Be cautious heading into the data this week.


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 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