Translate:

EN

MIG Market Watch, October 24th, 2022

MIG Market Watch, October 24th, 2022


MIG Market Watch, October 24th, 2022
Market Comment

Mortgage bond prices finished the week lower which put upward pressure on rates. We started the week on a neutral note but then rates shot higher mid-week. There are considerable concerns about liquidity in the US debt markets. The Fed has been a primary purchaser of Treasuries and MBSs and with them taking a break the market is in a bit of disarray. The data was all over the place. Industrial production rose 0.4% vs the expected unchanged reading. Capacity use was 80.3% vs 79.8%. NAHB housing was 38 vs 44. Housing starts were 1439K vs 1465K. Weekly jobless claims were 214K vs 233K. Existing homes sales were 4.71M vs 4.7M. Philadelphia Fed business conditions index was down 8.7 vs down 5. Mortgage interest rates finished the week worse by approximately 5/8 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
FHFA House Price Index Tuesday, Oct. 25,
10:00 am, et
Down 0.6% Moderately Important. A measure of single-family house prices. Weakness may lead to lower rates.
Consumer Confidence Tuesday, Oct. 25,
10:00 am, et
106.0 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
New Home Sales Wednesday, Oct. 26,
10:00 am, et
630K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
Q3 GDP Thursday, Oct. 27,
8:30 am, et
Up 2.0% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Weekly Jobless Claims Thursday, Oct. 27,
8:30 am, et
225K Important. An indication of employment. Higher claims may result in lower rates.
Durable Goods Orders Thursday, Oct. 27,
8:30 am, et
Up 0.2% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Personal Income and Outlays Friday, Oct. 28,
8:30 am, et
Up 0.3%,
Up 0.4%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, Oct. 28,
8:30 am, et
Up 0.5% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
U of Michigan Consumer Sentiment Friday, Oct. 28,
10:00 am, et
58.6 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Caution

Timing is one of the most important factors in success. Unfortunately, knowing the perfect time to lock in a loan is impossible until after the fact. While analysts constantly try to predict the future, the bottom line is they continually fall short in terms of accuracy. The Fed is a prime example of this. They constantly adjust inflation expectations and rate hikes and cuts accordingly.

Floating is risky. The Fed has said they will reduce their MBS holdings at some point and inflation fears are increasing. The recent trend has resulted in higher rates. Caution is key.

Share

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