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MIG Market Watch, January 9th, 2023

MIG Market Watch, January 9th, 2023


MIG Market Watch, January 9th, 2023
Market Comment

Mortgage bond prices finished the week near unchanged which held rates flat despite significant volatility throughout. Rates improved to start the week but quickly reversed course in response to stronger than expected data and continued oil price fluctuations. There are strong concerns that China’s demand will decrease as their production is impacted by continued Covid infections. China’sconsumption of energy is one of the highest in the world. Global economic expectations are also throttled amid continued uncertainty which resulted in some flight to safety buying of US debt instruments. Construction spending rose 0.2% vs an expected 0.4% decline. ADP employment rose 245K vs 148K. Weekly jobless claims were 204K vs 225K. Mortgage interest rates finished the week unchanged to better by approximately 1/8 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Credit Monday, Jan. 9,
3:00 pm, et
$22.5B Low importance. A significantly large increase may lead to lower mortgage interest rates.
3-year Treasury Note Auction Tuesday, Jan. 10,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
10-year Treasury Note Auction Wednesday, Jan. 11,
1:15 pm, et
None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Consumer Price Index Thursday, Jan. 12,
8:30 am, et
Up 0.1%,
Core up 0.3%
Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Weekly Jobless Claims Thursday, Jan. 12,
8:30 am, et
211K Important. An indication of employment. Higher claims may result in lower rates.
30-year Treasury Bond Auction Thursday, Jan. 12,
1:15 pm, et
None Important. Bonds will be auctioned. Strong demand may lead to lower mortgage rates.
U of Michigan Consumer Sentiment Friday, Jan. 13,
10:00 am, et
60.1 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Fed Minutes

The minutes from the December Fed meeting released last week reinforced the Fed’s position on additional rate hikes.

The Fed reported, “Consumer price inflation—as measured by the 12-month percent change in the price index for personal consumption expenditures (PCE)—stepped down in October but continued to be elevated.”

However, “With inflation still well above the Committee’s longer-run goal of 2 percent, participants agreed that inflation was unacceptably high. Participants concurred that the inflation data received for October and November showed welcome reductions in the monthly pace of price increases, but they stressed that it would take substantially more evidence of progress to be confident that inflation was on a sustained downward path.”

They continued, “With inflation still elevated, the staff continued to view the risks to the inflation projection as skewed to the upside. Moreover, the sluggish growth in real private domestic spending expected over the next year, a subdued global economic outlook, and persistently tight financial conditions were seen as tilting the risks to the downside around the baseline projection for real economic activity, and the staff still viewed the possibility of a recession sometime over the next year as a plausible alternative to the baseline.”

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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