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MIG Market Watch, February 20th, 2023

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20 Feb

MIG Market Watch, February 20th, 2023

MIG Market Watch, February 20th, 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. Higher than expected inflation readings resulted in MBS selling pressure. Consumer prices rose 0.5% as expected. The core rose 0.4% as expected. Year over year CPI rose 6.4% vs 6.2%. YOY Core rose 5.6% vs 5.4%. Producer prices rose 0.7% vs 0.4%. The core rose 0.5% vs 0.3%. Yearly PPI prices rose 6% vs 5.4%. YOY Core rose 5.4% vs 4.9%. Housing starts were 1.309M vs 1.36M. Retail sales rose 3% vs 1.2%. Weekly jobless claims were 194K vs 203K. Mortgage interest rates finished the week worse by approximately 1/2 of a discount point.

Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
2-year Treasury Note Auction Tuesday, Feb. 21,
1:15 pm, et		 None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
5Y Treasury Note Auction Wednesday, Feb. 22,
1:15 pm, et		 None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Fed Minutes Wednesday, Feb. 22,
2:00 pm, et		 None Important. Details of the last Fed meeting will be thoroughly analyzed.
Weekly Jobless Claims Thursday, Feb. 23,
8:30 am, et		 195K Important. An indication of employment. Higher claims may result in lower rates.
7Y Treasury Note Auction Thursday, Feb. 23,
1:15 pm, et		 None Important. Notes will be auctioned. Strong demand may lead to lower mortgage rates.
Personal Income and Outlays Thursday, Feb. 16,
8:30 am, et		 Up 0.2%,
Down 0.1%		 Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, Feb. 24,
8:30 am, et		 Up 0.2% Important. A measure of price increases for all domestic personal consumption. Weaker figure may help rates improve.
New Home Sales Friday, Feb. 24,
10:00 am, et		 616K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Friday, Feb. 24,
10:00 am, et		 64.9 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
Higher Inflation

Mortgage interest rates are higher lately as inflation is significantly above the Fed’s 2% goal and recent inflation readings have traders concerned about the magnitude of future Fed rate hikes. Higher than expected producer and consumer inflation readings sent MBS prices lower and rates upward last week. Comments from Fed officials added fuel to the selling pressure. Richmond Fed President Barkin, Cleveland Fed President Mester, and St. Louis Fed President Bullard all signaled last week that inflation remains high and that additional rate increases are needed. Mester and Bullard even went as far as stating they wanted a larger hike at the most recent meeting.

Now is a good time to take advantage of rates at these levels to avoid exposure to volatility in the weeks ahead.

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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

LEGAL & CONSUMER INFORMATION
NMLS #34391 - TN License # 109111 See the NMLS consumer access page