MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG WeeklyForecast for the Week 

The markets are closed on Monday in observance of Martin Luther King, Jr. Day and the economic calendar is pretty quiet the rest of the week.

  • More housing news is ahead, with Existing Home Sales on Tuesday and New Home Sales on Friday.
  • The only other economic report will be Weekly Initial Jobless Claims on Thursday. Last week, claims fell to a five-year low and this may have been due to seasonal factors. Investors will be looking for any uptick in the numbers.

In addition, many companies will be reporting their earnings numbers and the markets will be closely watching the results. Positive earnings data could help push Stocks higher and shift investing dollars out of the Bond markets, which could have a negative impact on home loan rates.

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 worsened last week due in part to the better-than-expected housing news and an influx of investing dollars into Stock mutual funds. I’ll continue to watch this situation closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Jan 18, 2013)
Japanese Candlestick Chart
The Mortgage Market Guide View… 
Writing Business Articles That Get Read
“The easiest thing for a reader to do is to quit reading.”
Michael Gartner, Pulitzer Prize winner and former President, NBC News

To some people, writing a business article can seem almost as daunting as public speaking. And yet, just like public speaking, business writing presents a variety of opportunities to share your expertise. Be it through local news outlets, community newsletters or shared access to a strategic partner’s database, you can grab some fresh exposure for yourself or your business by writing a timely, helpful article.

Here are a few tips on how to write one that people will read and remember:

The Inverted Pyramid. Your goal should always be to create an easy reading experience for your audience. And there’s no easier way to write an article than to follow in the footsteps of the experts. The inverted pyramid is a tool many journalists use to explain the structure of most news articles. For a classic example, read this news story (scroll down to the heading that says “History”) that originally appeared in the New York Herald in April of 1865.

Start At The Bottom. You want to make sure all the newsworthy information is in the beginning, but not go into too much detail. It’s critical you answer the Who, What, When, Where, Why, and How as early and as briefly as possible. If you skip this in favor of a long narrative, you’re more likely to lose readers you wouldn’t have lost otherwise.

Details, Details, Details. The benefit to keeping your introduction short and to the point is your readers are more likely to follow you into the nitty-gritty. This is the stuff you really want to talk about and here’s where you’ll expand on your message and deliver the value promised by your introduction. Make sure, however, you deliver the goods–or “pay off”–to your readers by giving them the information you’ve promised in your headline and introduction.

The Kitchen Sink. The ending is reserved for other information needed to back up your case, lend credibility to your point, or include relevant but non-essential information on the subject.

Call To Action. This step doesn’t appear on the inverted pyramid model, but if you’re writing for business, and your publication allows it, put a very clear call to action that lets readers know you take questions and are happy to receive a call from them if they want to talk more about it with you!

Economic Calendar for the Week of January 21 – January 25

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. January 22
10:00
Existing Home Sales
Dec
5.10M
5.04M
Moderate
Thu. January 24
08:30
Jobless Claims (Initial)
1/19
355K
335K
Moderate
Fri. January 25
10:00
New Home Sales
Dec
378K
377K
Moderate

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.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Equal Housing Lender

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