MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

The calendar is busy this week, with important news from start to finish.

  • The week kicks off Monday with Durable Goods Orders, which are orders for items that last for an extended period of time.
  • In housing news, the S&P/Case-Shiller Home Price Index will be released on Tuesday.
  • Consumer Confidence will also be released on Tuesday with the Consumer Sentiment Index following on Friday.
  • As usual, Weekly Initial Jobless Claims will be released on Thursday, as claims hover near six-year lows.
  • Also on Thursday, Gross Domestic Product for the second quarter will be closely watched for any signs of an uptick in economic growth. The initial reading was a rather weak 1.7 percent.
  • Ending the week on Friday, we’ll see Personal Consumption Expenditures, the Fed’s favorite read on inflation, along with Personal Income, Personal Spending, and Chicago PMI data.

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 were able to stabilize last week. Home loan rates remain attractive and I will continue to monitor them closely.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday August 23, 2013)

Japanese Candlestick Chart

The Mortgage Market Guide View…

How to Make Free Calls

Software and apps you can install on your computer or smart phone can help you save money on calls.

By Cameron Huddleston, Kiplinger.com

You’ve likely heard that ditching your landline is a good money-saving move. But if you’re relying on your mobile phone to make all your calls, you might have to pay more to get unlimited minutes. So to keep costs down, consider using a free Internet calling service. There are several you can download to your computer, smart phone or tablet. These services also are ideal for people who make international calls and for college students who want to keep in touch with friends and families. Because they’re free, you can try out all of the services below to see which works best for you.

Skype. To use Skype, you need an Internet connection and a computer or mobile device with a microphone and speakers. It only takes a few minutes to install it and create an account with a username that will serve as your contact information (rather than a phone number). Then you can make free voice and video calls (if you have a webcam) to other Skype users. You also can use Skype for instant messaging and file sharing.

Viber. Unlike Skype, Viber doesn’t require you to create an account with a username. Instead, it uses your mobile phone number. So you must first install it on your smart phone. Then you can install it on your computer if you want. In addition to free voice and video calls, Viber offers free text and photo messaging and location sharing with other Viber users. Just make sure you use a Wi-Fi connection rather than 3G so you don’t use your phone’s data.

Vonage Mobile. This relatively new Android and iPhone app lets users make free voice and video calls and send free text messages to others with the app. You also can use it to make free calls to Vonage home phone customers. Like Viber, it uses your mobile phone number as your caller ID.

Reprinted with permission. All Contents ©2013 The Kiplinger Washington Editors. Kiplinger.com.

Economic Calendar for the Week of August 26 – August 30

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. August 26
08:30
Durable Goods Orders
Jul
NA
3.9%
Moderate
Tue. August 27
09:00
S&P/Case-Shiller Home Price Index
Jun
NA
12.2%
Moderate
Tue. August 27
10:00
Consumer Confidence
Aug
NA
80.3
Moderate
Wed. August 28
10:00
Pending Home Sales
Jul
NA
-0.4%
Moderate
Thu. August 29
08:30
GDP Chain Deflator
Q2
NA
0.7%
Moderate
Thu. August 29
08:30
Gross Domestic Product (GDP)
Q2
NA
1.7%
Moderate
Thu. August 29
08:30
Jobless Claims (Initial)
8/24
NA
NA
Moderate
Fri. August 30
08:30
Personal Income
Jul
NA
0.3%
Moderate
Fri. August 30
08:30
Personal Spending
Jul
NA
0.5%
Moderate
Fri. August 30
08:30
Personal Consumption Expenditures and Core PCE
Jul
NA
0.2%
HIGH
Fri. August 30
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.2%
HIGH
Fri. August 30
08:30
Consumer Sentiment Index (UoM)
Aug
NA
80.0
Moderate
Fri. August 30
09:45
Chicago PMI
Aug
NA
52.3
HIGH

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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