Forecast for the Week 

The Bond Market will be closed Monday in observance of Veterans Day, but then the second half of the week heats up with news on consumer spending, wholesale and consumer inflation, and several manufacturing reports:

• The economic data this week begins on Wednesday with the closely watched Retail Sales Report, which measures consumer spending.
• Inflation data from the wholesale and consumer level in the form of the Producer and Consumer Price Index will be released on Wednesday and Thursday, respectively.
• Also on Thursday, the Weekly Initial Jobless Claims report will be delivered.
• Manufacturing data from the New York State and Philadelphia Fed Index will be delivered Thursday. The data had been weak from late spring through August, but made a comeback in September and October.

In addition, the Federal Open Market Committee (FOMC) meeting minutes will be released on Wednesday, which can cause some volatility.

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, Mortgage Bonds rebounded last week, helping home loan rates remain near record lows. I’ll be watching closely to see what happens this week.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Nov 09, 2012)

The Mortgage Market Guide View… 

Protect Yourself from Malware

Computer issues are something that most everyone has experienced–and they are certainly a big factor that can impact (and sometimes even halt) productivity during the day. Often, one of the biggest culprits for a slow or malfunctioning computer is malware.

Malware is short for “malicious software” which includes both software and viruses installed on your computer without you knowing it… and without your permission. Once on your computer, malware can slow down your computer or even crash it, take control over other software, ‘spy’ on your online activity, and even track your keystrokes in order to steal your login and password information.

The Federal Trade Commission’s website, On Guard Online, suggests a number of ways to prevent malware from being installed on your computer– and to remove it once it is there.

First, make sure your web browser and operating system are set to update automatically. Next, use a pop-up blocker, or set your browser to stop them. And definitely don’t click on pop-ups that you come across randomly surfing the web. And if you frequently download software, music, videos, or other files, make sure you do so from sites you trust implicitly – downloads are perhaps the single most frequent way to get malware on your computer.

Of course, up to date virus software is also critical to maintain. And there are even free versions like Microsoft’s little known Security Essentials or AVG Anti-Virus. Both offer robust malware protection without hogging system resources on your PC.

For more tips on how to protect your computer from malware, visit On Guard Online. And don’t forget to share these great resources with your clients, colleagues, and friends!

Economic Calendar for the Week of November 12 – November 16

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.