Forecast for the Week
Employment reports will lead the news this week:
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.
When you see these Bond prices moving higher, it means home loan rates are improving — and when they are moving lower, home loan rates are getting worse.
To go one step further — a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.
As you can see in the chart below, Bonds and home loan rates benefitted from the drama in Europe and some weaker economic data last week. It’s a volatile time in the markets and I’ll be watching developments closely.
Chart: Fannie Mae 3.5% Mortgage Bond (Friday Mar 30, 2012)
The Mortgage Market Guide View
3 Things to Know About Filing Your Taxes
It’s that time again…tax season! But this yearly ritual actually changes each year in small, but important ways. Here are just 3 things you need to know about filing your taxes this time around:
1. Two Extra Days to File!
This year, April 15 falls on a weekend, so that pushes the deadline into the following week. But, that’s not the end of the story. This year, Emancipation Day–which is a legal holiday in the District of Columbia–will be observed on Monday, April 16. And since the tax deadline cannot fall on a holiday, it means the due date for filing your tax return is extended to Tuesday, April 17, 2012.
2. Extension to Make IRA Contributions!
In addition to the tax deadline being extended by two days, the deadline to contribute to your IRA is also extended to Tuesday, April 17, 2012. Along with this announcement, the IRS put together a list of 10 things you need to know about setting aside retirement money in an IRA.
3. Options for Paying Uncle Sam!
If you’re experiencing money troubles and you owe money on your taxes from last year, you may be eligible to receive a 6-month extension on your payment. And you may be surprised to learn about the details of this program! Read about the important qualifications and implications of the IRS announcement.
Need even more news on taxes and the IRS? No problem! You can “Follow” the IRS on Twitter or “Like” the IRS on Facebook!
Economic Calendar for the Week of April 02 – April 06
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