Forecast for the Week 

After last week’s fireworks, the markets will be searching for clues as to what direction investors and traders will follow.

  • Economic news doesn’t begin until Wednesday with the first look at 2nd quarter Productivity but it shouldn’t be any kind of major market mover.
  • On Thursday, weekly Initial Jobless Claims will be released.

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 have moved a bit from their record best levels, but still remain near historic bests. I’ll continue to monitor their movement closely.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 03, 2012)
Japanese Candlestick Chart

The Mortgage Market Guide View… 

Storytelling: Using Pixar’s Rules in Business

Telling a good story isn’t always easy. But learning to tell a good story is imperative for leadership and business in the 21st century.

In fact, Daniel Goleman sheds some light on this in the opening paragraph of his book, Primal Leadership. Goleman writes: “Great leaders move us. They ignite our passion and inspire the best in us.” And as author, speaker, agent for social change, and catalyst Kevin Carroll says, one of the main ways leaders move us is through their ability to tell stories.

As Carroll explains, leaders have to communicate varieties of information and announcements to people. And the best leaders have learned to attach meaning to the information they communicate, so their listeners become invested in what they have to say.

The bottom line: Storytelling helps great leaders reach people, inspire people, and galvanize people around an idea so that the idea becomes a reality.

Need some storytelling help? Turn to the pros: Pixar! Recently, storyboard artist Emma Coats tweeted Pixar’s rules of storytelling.

Even better… created an infographic of Pixar’s 22 storytelling rules. Check it out for help improving your storytelling in business situations!

Economic Calendar for the Week of August 06 – August 10

Economic Report
Wed. August 08
Thu. August 09
Jobless Claims (Initial)
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