MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

Forecast for the Week 

Big economic data will be released at the end of this week…but there are a number of reports that will build the anticipation as the week goes on!

  • Economic data starts right off on Monday with the ISM Manufacturing Index, which will befollowed by the ISM Service Sector Index on Wednesday.
  • The ADP Employment Report for September will also be delivered on Wednesday.
  • The Labor Department will report the Weekly Initial Jobless Claims data on Thursday. This week’s report comes after last week’s number was the lowest since late July, so the markets will be watching to see if the good news continues.
  • Finally on Friday, the government’s Jobs Report for September will be released with Non-Farm Payrolls and the Unemployment Rate.

Beyond the jobs data, the minutes from the Fed’s latest Federal Open Market Committee Meeting should also garner attention on Wednesday.

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 been on an improving streak since the Fed announced QE3. I’ll be watching closely to see what happens this week.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Sep 28, 2012)
Japanese Candlestick Chart

The Mortgage Market Guide View… 

Hispanic Heritage Month: Sept. 15 – Oct. 15, 2012

The Hispanic population is the largest ethnic or minority race in America. In fact, 52 million Hispanics now live in the United States…which is more than double from 20 million in 1990. By the year 2050, the Hispanic population in the U.S. is estimated to reach 132 million!

Reach out…

Now’s the perfect time to connect with your Spanish-speaking clients and potential clients by wishing them a happy Hispanic Heritage Month this September 15 through October 15!

A little history…

Originally authorized by President Lyndon Johnson in 1968 as National Hispanic Heritage Week, the observance was expanded to a month-long celebration in 1988. September 15 was chosen as the first day of the celebration because it is celebrated as the independence day of five Latin American countries: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. In addition, Mexico celebrates its independence on September 16, and Chile celebrates on September 18.

Discover more…

Read stats and facts about Hispanic Heritage Month on the U.S. Census Bureau’s facts and features page! You can even pass the link on to clients and referral partners who might be interested in learning more.

Economic Calendar for the Week of October 01 – October 05

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. October 01
10:00
ISM Index
Sept
NA
49.6
HIGH
Wed. October 03
10:00
ADP National Employment Report
Sept
NA
201K
HIGH
Wed. October 03
10:00
ISM Services Index
Sept
NA
53.7
Moderate
Wed. October 03
02:00
FOMC Minutes
Sept
NA
NA
HIGH
Thu. October 04
08:30
Jobless Claims (Initial)
9/29
NA
NA
Moderate
Fri. October 05
08:30
Non-farm Payrolls
Sept
NA
96K
HIGH
Fri. October 05
08:30
Unemployment Rate
Sept
NA
8.1%
HIGH
Fri. October 05
08:30
Hourly Earnings
Sept
NA
0.0%
HIGH
Fri. October 05
08:30
Average Work Week
Sept
NA
34.3
HIGH
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