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MIG Market Watch, January 24th

MIG Market Watch, January 24th


MIG Market Watch, January 24th
Market Comment

Mortgage bond prices finished the week lower which put additional upward pressure on rates. Heavy selling pressure continued Tuesday morning as rates worsened by 5/8 of a discount point that morning alone. Inflation fears dominated trading. Oil prices hit levels not seen since 2014. The Fed continued their MBS purchases which buffered some of the rate increases. There were some slight positive movements the last portion of the week which chipped away at the earlier losses. The data was mixed. NAHB housing was 83 vs 85. Housing starts were 1702K vs the expected 1700K. Weekly jobless claims were higher than expected at 286K vs 220K. The Philadelphia Fed index was 23.2 vs 20. Leading economic indicators rose 0.8% vs 0.7%. Mortgage interest rates finished the week worse by approximately 1/4 of a discount point.


Looking Ahead
Economic Indicator Release Date & Time Consensus Estimate Analysis
Consumer Confidence Tuesday, Jan. 25,
10:00 am, et
113 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.
New Home Sales Wednesday, Jan. 26,
10:00 am, et
770K Important. An indication of economic strength and credit demand. Weakness may lead to lower rates.
Fed Meeting Adjourns Wednesday, Jan. 26,
2:15 pm, et
No rate changes Important. Few expect the Fed to change rates, but some volatility may surround the adjournment of this meeting.
Durable Goods Orders Thursday, Jan. 27,
8:30 am, et
Down 0.2% Important. An indication of the demand for “big ticket” items. Weakness may lead to lower rates.
Q4 GDP Thursday, Jan. 27,
8:30 am, et
Up 5.8% Very important. The aggregate measure of US economic production. Weakness may lead to lower rates.
Personal Income and Outlays Friday, Jan. 28,
8:30 am, et
Up 0.4%,
Up 0.1%
Important. A measure of consumers’ ability to spend. Weakness may lead to lower mortgage rates.
PCE Core Inflation Friday, Jan. 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.
Q4 Employment Cost Index Friday, Jan. 28,
8:30 am, et
Up 1.2% Very important. A measure of wage inflation. Weakness may lead to lower rates.
U of Michigan Consumer Sentiment Friday, Jan. 28,
10:00 am, et
68.8 Important. An indication of consumers’ willingness to spend. Weakness may lead to lower mortgage rates.

Busy Week

Economic data is usually the number one reason mortgage interest rates move daily. Data is compiled from numerous sources and comes in two flavors, economic growth and inflation. Some releases are more important than others and thus are more likely to cause wider swings in mortgage rates. Rates move in relation to the deviation from expectations. We have significant releases all week. The potential for mortgage interest rate volatility is greater as a result.The recent trend has been toward higher rates. Future rate volatility is likely, so caution is key.

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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