Forecast for the Week
The calendar heats up this week with reports on sales, housing, jobless claims and manufacturing:
In addition to those reports, Corporate Earnings reports may influence the Stock markets – and as we know, the Bond markets usually move in the opposite direction.
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, it’s been a wild, volatile few weeks in the markets. I’ll be monitoring all the news closely to see how the markets and home loan rates respond next.
Chart: Fannie Mae 3.5% Mortgage Bond (Friday Apr 13, 2012)
Mortgage Market Guide View
No More Texting and Driving…There’s an App for That!
A study by the National Highway Traffic Safety Administration found that distracted driving was the leading cause in nearly 450,000 accidents and more than 5,000 highway deaths.
Unfortunately, one of the most distracting elements for drivers today is text-messaging technology. The good news is that technology can also help solve this problem. Services – like DriveSafe.ly – have sprung up that eliminate the need to read text messages AND eliminate the need to respond. That’s good news regardless of whether you’re receiving personal or business text messages.
Here’s how it works…You download an application to your phone. Then, before you get in your car to drive, you simply turn the application on. When you receive a text message, the application actually reads it to you…automatically…and out loud. So there’s no need to take your eyes off the road.
Better still… the application automatically sends a reply message stating that you are driving and will respond as soon as you reach a destination that allows you to safely reply.
The application can be used on a variety of phones and there are even different plans – including a free version of DriveSafe.ly as well as family and business plans.
If you receive a lot of text messages while driving, this could be one of the most important safety steps you do this year. Take a few minutes to check it out.
After all, this simple application could save your life or the life of someone you know.
Economic Calendar for the Week of April 16 – April 20
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