MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

After last week’s slow calendar, this week features a steady stream of reports.

  • Economic data kicks off on Tuesday with Retail Sales for July. This comes after a decent reading in June.
  • Inflation data from the wholesale-measuring Producer Price Index and the Consumer Price Index will be released on Wednesday and Thursday, respectively.
  • In the manufacturing sector, the Empire State Index and Philadelphia Fed Index will be released on Thursday along with Weekly Initial Jobless Claims.
  • To round out the week, Housing Starts, Building Permits and Consumer Sentiment will be disseminated on Friday.

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 have improved from multi-year lows in recent weeks. I’ll be watching closely to see if they can improve further.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday August 09, 2013)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Brain Breakthroughs

Many people think intellect is a matter settled at birth, and mistakenly believe there’s no way to boost their brain brilliance. But scientific studies prove just the opposite. In fact, small lifestyle adjustments combined with a few mental gymnastics can not only increase intelligence, but also improve general brain health, helping prevent aging disorders, such as Alzheimer’s disease.

According to most neurologists, the key is staying mentally active, whatever your age. The following tips will help boost your mental acuity and increase your intelligence.

All You Have To Do Is Dream. An adequate amount of restful sleep is an important component of brain function (its effect on memory and learning is contested among scientists). Restful sleep provides energy as well as the ability to focus, both vital factors in achieving mental stimulation. Some studies have also shown the reverse to be true, that is, that more mental stimulation during the day gives you better sleep at night.

Jumpin’ Jack Flash Memory. Exercise brings oxygen-rich blood to the brain and regulates blood-sugar levels. Exercises such as aerobics, dance, and martial arts all require memorization and are great for promoting mental stimulation. They also help to develop the rhythm and timing circuitry that runs across multiple regions of the brain.

Playing Those Mind Games Together. Crossword puzzles and Sudoku, board games and card games are all excellent for mental stimulation–now you can add video games to the list. Each type of game makes various demands on brain function such as recall, hand-eye coordination, attention, memory, logic, and pattern recognition. The key here is to keep upping the skill or level of challenge as you progress.

Economic Calendar for the Week of August 12 – August 16

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. August 13
08:30
Retail Sales
Jul
NA
0.4%
HIGH
Tue. August 13
08:30
Retail Sales ex-auto
Jul
NA
0.0%
HIGH
Wed. August 14
08:30
Producer Price Index (PPI)
Jul
NA
0.8%
Moderate
Wed. August 14
08:30
Core Producer Price Index (PPI)
Jul
NA
0.2%
Moderate
Thu. August 15
08:30
Empire State Index
Aug
NA
9.4
HIGH
Thu. August 15
08:30
Core Consumer Price Index (CPI)
Jul
NA
0.2%
HIGH
Thu. August 15
08:30
Consumer Price Index (CPI)
Jul
NA
0.5%
HIGH
Thu. August 15
08:30
Jobless Claims (Initial)
8/10
NA
333K
Moderate
Thu. August 15
10:00
Philadelphia Fed Index
Aug
NA
19.8
HIGH
Fri. August 16
08:30
Housing Starts
Jul
NA
836K
Moderate
Fri. August 16
08:30
Building Permits
Jul
NA
911K
Moderate
Fri. August 16
08:30
Productivity
Q2
NA
0.5%
Moderate
Fri. August 16
10:00
Consumer Sentiment Index (UoM)
Aug
NA
83.1
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.

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