Forecast for the Week 

The second half of the week heats up with several important reports.

• Economic data doesn’t begin until Thursday with Weekly Initial Jobless Claims. Claims have been moving lower the past few weeks after the big spike higher in November due to Superstorm Sandy.
• Retail Sales will also be delivered on Thursday.
• A double dose of inflation news ends the week, with the wholesale-measuring Producer Price Index on Thursday,followed by the Consumer Price Index on Friday.

In addition, the last Federal Open Market Committee meeting for 2012 will be held on Tuesday and Wednesday, and that always has the potential to move the markets.

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 reacted negatively to the better than expected Jobs Report for November. But home loan rates remain near historic lows and I will continue to monitor their movement closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Dec 07, 2012)

The Mortgage Market Guide View… 

Easy Presentation Tips

For many people, public speaking is one of their greatest fears. And the task of speaking to groups large and small can seem daunting! What if you deluge people with too much information, give them too many options, talk too much, bore them, or speak in jargon they don’t understand?

The good news is that there are some simple tips that can help make any presentation shine:

Give the big picture. People love stories, so use ones that illustrate how your ideas fit together. This will help people visualize and, more importantly, relate to what you’re telling them. Stories will also help people relate to and connect with you, helping you build rapport in the process.

Short is sweet. Don’t spend too much time getting to the point. As Winston Churchill once said, “The head cannot take in more than the seat can endure.”

Tell them what you want them to do. Most salespeople know how to ask for the sale, but often forget to ask for everything else. If you want agreement, ask for it. If you need information, ask for it. And most important of all, say “thank you” when you get it!

Be conversational. The fastest way to lose people is corporate-speak, jargon, or using big words when small ones will do. Whenever you are presenting, just imagine yourself sitting next to someone you are comfortable with for a friendly chat.

Economic Calendar for the Week of December 10 – December 14

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.