Forecast for the Week

The economic calendar heats up this week with important inflation, housing, and manufacturing news.

We kick off the week with manufacturing news via the Empire State Index on Monday, followed by the Philadelphia Fed Index on Thursday.

• Tuesday we’ll get a read on inflation at the consumer level with the Consumer Price Index.
• Also on Tuesday, look for news on the housing market with Housing Starts and Building Permits.
• On Wednesday, we’ll get a look at economic activity across the nation with the Fed’s Beige Book.
• As usual on Thursday, Weekly Initial Jobless Claims will be released.

In addition, earnings season continues with important reports from Coca Cola, Goldman Sachs, Google, GE and more.

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 are hovering near record best levels. I’ll continue to monitor this closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday Apr 12, 2013)

The Mortgage Market Guide View…

The Art of Handwritten Notes

According to a report by the U.S. Postal Service, the average household went from receiving a personal letter once every two weeks in 1987 to once every seven weeks by 2010. It’s no surprise that number dwindles ever lower given that we live in the age of instant messaging, tweets, and email.

But there is a bright side. Handwritten notes now have much more value and impact than at any other time in history. They’re the perfect way to show clients and referral partners how much you value them.

Here’s a six-point formula suggested by etiquette experts. It is not necessary to write more than one sentence per point.

1. Greeting. Simple: Dear Name.
2. Express your gratitude. Thank you for trusting me with the financing for your new home.
3. Make mention. One of the best parts of my job is seeing my clients find a home they love.
4. Allude to the future. I wish you many years of happiness there.
5. Repeat your gratitude. Not word for word, a short “Thanks again” will suffice.
6. Salutation. End with regards such as “Sincerely” and sign your name.

Joe Girard, recognized as the world’s greatest salesman by Guinness Book of World Records, sent a handwritten message to all his clients each month with a simple message such as “I like you” and “Thank you” written inside. He credited much of his repeat business to these notes.

Please feel free to pass this along to any clients and colleagues who might benefit from these tips.

Economic Calendar for the Week of April 15 – April 19

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.