Forecast for the Week 

The labor market will be front and center this week, with several important reports.

• On Tuesday, ISM Services will be released.
• Wednesday kicks off the various reports relating to the labor markets with the ADP Employment Report.
• Weekly Initial Jobless Claims will be reported on Thursday, along with Productivity.
• The most important report this week is Friday’s government jobs data, which includes Non-farm Payrolls and the Unemployment Rate.

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 continue to remain near record best levels. I’ll be watching their movement closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Mar 01, 2013)

The Mortgage Market Guide View… 

The 4 Things People Want From A Leader

“You can have everything in life that you want if you just give enough other people what they want.”

Zig Ziglar

It’s no secret the world is in a protracted economic crisis caused by many different and competing factors–and it may be awhile before recovery really takes hold. It’s enough to make people lose faith in just about anything. But Rob Goffee, author, Professor of Organizational Behavior at London Business School and former Director of Human Resources for the BBC, argues that if we lose faith in our leaders, we stand to lose everything. Great businesses, he insists, led by great people will bring our current difficulties to an end.

The very definition of leadership, according to Goffee, is the ability to excite people to exceptional performance. What’s more, people want exceptional performance everywhere–our schools, our hospitals, our local businesses, even our sports teams! Goffee and his students asked over 1,000 people what they wanted from leaders in these tough times and they arrived at four things, listed here in order of importance:

Community. People want to belong to something. Being part of a team is highly motivating.

Authenticity. People want to be led by a real person they can trust. We know instinctively when leaders are only in it for themselves. Performance is always the first thing to suffer and if demoralization sets in, there may be dire consequences to the entire organization.

Significance. People want to be recognized for their part in the contribution to the whole. We want to have meaning but, again, not just bring home a paycheck. Individual recognition is one of the most critical functions a leader must fulfill regularly.

Excitement. Leaders, from local business owners to CEO’s, have the ability to transform organizations and enrich lives. If leaders are not excited about what they are doing, you can be sure the employees are dragging quietly behind them.

Effective leadership is an authentic, skillful role performance. It requires lots of action, and it’s always difficult, but it’s always worth it. Try it with those who follow you and share these tips with your clients and colleagues!

Economic Calendar for the Week of March 04 – March 08

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.