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MIG Market Watch, February 13th, 2023

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13 Feb

MIG Market Watch, February 13th, 2023

MIG Market Watch, February 13th, 2023
Market Comment

Mortgage bond prices finished the week sharply lower which put upward pressure on rates. Rates worsened throughout most of the week as inflation fears continued. We started negative in carryover from the strong employment report the prior week. Fed Chair Powell spoke Tuesday which calmed things temporarily. However, Fed official Waller indicated that we may need rates “higher for longer.” Selling pressure continued Wednesday and Friday as a result. There wasn’t much data. Weekly jobless claims were 196K vs 194K. The trade deficit was $67.4B vs $68.5B. Consumer sentiment was 66.4 vs 65.0. 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
Consumer Price Index Tuesday, Feb. 14,
8:30 am, et		 Up 0.1%,
Core up 0.4%		 Important. A measure of inflation at the consumer level. Weaker figures may lead to lower rates.
Retail Sales Wednesday, Feb. 15,
8:30 am, et		 Down 1.1% Important. A measure of consumer demand. Weakness may lead to lower mortgage rates.
Industrial Production Wednesday, Feb. 15,
9:15 am, et		 Down 0.7% Important. A measure of manufacturing sector strength. Weakness may lead to lower rates.
Capacity Utilization Wednesday, Feb. 15,
9:15 am, et		 78.8% Important. A figure above 85% is viewed as inflationary. Weaker figure may lead to lower rates.
NAHB Housing Index Wednesday, Feb. 15,
10:00 am, et		 35 Moderately Important. A measure of single-family housing. Weakness may lead to lower mortgage rates.
Housing Starts Thursday, Feb. 16,
8:30 am, et		 1.382M Important. A measure of housing sector strength. Weakness may lead to lower rates.
Producer Price Index Thursday, Feb. 16,
8:30 am, et		 Down 0.5%,
Core up 0.1%		 Important. An indication of inflationary pressures at the producer level. Weaker figures may lead to lower rates.
Weekly Jobless Claims Thursday, Feb. 16,
8:30 am, et		 196K Important. An indication of employment. Higher claims may result in lower rates.
Leading Economic Indicators Friday, Feb. 17,
10:00 am, et		 Down 0.8% Important. An indication of future economic activity. Weakness may lead to lower rates.
Rate Pressure

Mortgage interest rates are higher lately as inflation is significantly above the Fed’s 2% goal. The Fed is expected to raise rates March 22nd and the odds of a hike currently exceed 93%. The February Fed statement indicated, “Inflation has eased somewhat but remains elevated” and that there remains “elevated global uncertainty.” Data in the weeks ahead is likely to direct interest rate movements as the Fed stated, “The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.” An expanding economy with a tight labor market paves the way for rate hikes sooner rather than later. Now is a great time to take advantage of rates at these levels.

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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

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