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MIG Market Watch, September 5th, 2022

MIG Market Watch, September 5th, 2022


MIG Market Watch, September 5th, 2022
Market Comment

Mortgage bond prices finished the week sharply lower which put upward pressure on rates. Volatility was the norm. We started the week on a negative note, had small positive movements Tuesday, traded off Wednesday and Thursday morning, only to finish with some positive movements Thursday afternoon and Friday morning. Inflation was the dominant fear as the Fed’s stance on continued elevated rates pressured bond prices lower and rates higher. The data was very mixed. The FHFA house price index rose 0.1% vs 0.8%, Consumer confidence was 103.2 vs 97.9. ADP employment was 132K vs 315K. Weekly jobless claims were 232K vs 255K. Productivity fell 4.1% vs the expected 4.5% decline. Unit labor costs rose 10.2% vs 10.7%. ISM Index was 52.8% vs 51.8%. Mortgage interest rates finished the week worse by approximately 3/8 to 1/2 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Labor Day Monday, Sept. 5 Important. Shortened trading week may result in volatility when trading resumes.
Trade Data Wednesday, Sept. 7,
8:30 am, et
$70.5B 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. 8,
8:30 am, et
245K Important. An indication of employment. Higher claims may result in lower rates.
Consumer Credit Thursday, Sept. 8,
3:00 pm, et
$33.5B Low importance. A significantly large increase may lead to lower mortgage interest rates.

Employment Details

The US Bureau of Labor Statistics reported last Friday, “Total nonfarm payroll employment increased by 315,000 in August, and the unemployment rate rose to 3.7 percent.” Analysts expected an increase of 300,000 payrolls and an unemployment rate of 3.5 percent. “In August, the unemployment rate rose by 0.2 percentage point to 3.7 percent, and the number of unemployed persons increased by 344,000 to 6.0 million. In July, these measures had returned to their levels in February 2020, prior to the coronavirus (COVID-19) pandemic.” “Nonfarm employment has risen by 5.8 million over the past 12 months, as the labor market continued to recover from the job losses of the pandemic-induced recession. This growth brings total nonfarm employment 240,000 higher than its pre-pandemic level in February 2020. In August, notable job gains occurred in professional and business services, health care, and retail trade.”

“In August, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3 percent, to $32.36. Over the past 12 months, average hourly earnings have increased by 5.2 percent. In August, average hourly earnings of private-sector production and nonsupervisory employees rose by 10 cents, or 0.4 percent, to $27.68.
The average workweek for all employees on private nonfarm payrolls decreased by 0.1 hour to 34.5 hours in August. In manufacturing, the average workweek for all employees was little changed at 40.3 hours, and overtime held at 3.3 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls declined by 0.1 hour to 33.9 hours.

The change in total nonfarm payroll employment for June was revised down by 105,000, from +398,000 to +293,000, and the change for July was revised down by 2,000, from +528,000 to +526,000. With these revisions, employment in June and July combined is 107,000 lower than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)”

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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