MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

The economic report calendar is light this week, with reports not beginning until Thursday.

  • Weekly Initial Jobless Claims will be released as usual on Thursday. Claims have been stuck in a tight range the past four weeks.
  • Also on Thursday, look for January’s Retail Sales data.
  • The last report this week will be the preliminary reading on February Consumer Sentiment.

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 on which home loan rates are based.

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, Mortgage Bonds and home loan rates improved after the weak Jobs Report for January was released. I’ll be watching the news closely this week to see if these improvements continue

Chart: Fannie Mae 4.0% Mortgage Bond (Friday February 07, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Mileage Rates for 2014

If you drive a car, truck or van for work, you’ll want to make sure you know standard mileage rates the Internal Revenue Service (IRS) has set for 2014.
These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. So when it comes to filing your taxes this year, you’ll need these numbers!

New for 2014
As of January 1, 2014, the standard mileage rates are as follows:

  • Businesses = 56 cents per mile driven
  • Medical or moving = 23.5 cents per mile driven
  • Charitable organizations = 14 cents per mile driven

You’ll notice that the rates for business, medical and moving expenses decreased one-half cent from the 2013 rates.

Make Sure You Qualify
Before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

Additional Option
Although the IRS provides the standard mileage rate for ease and convenience, you’re not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates.

Remember, if you have questions or concerns, talk to a tax consultant or accountant to discuss your options and unique situation. Please feel free to pass these tips along to your team, clients, and colleagues.

Economic Calendar for the Week of February 10 – February 14
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Thu. February 13
08:30
Jobless Claims (Initial)
2/08
NA
331K
Moderate
Thu. February 13
08:30
Retail Sales
Jan
NA
0.2%
HIGH
Thu. February 13
08:30
Retail Sales ex-auto
Jan
NA
0.7%
HIGH
Fri. February 14
10:00
Consumer Sentiment Index (UoM)
Feb
NA
81.2
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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One thought on “MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

  1. Where’s your video??? Show me your pretty face.

    Kristen M. Gielow | Executive Coach | Building Champions | 303.941.5185 T | http://www.buildingchampions.com

    Courtney Jackson | Coach Assistant | Building Champions |503.906.2075 T | 503.906.2175 F | Courtney.Jackson@buildingchampions.com

    For reflections on life, visit my blog: http://www.CoachKristenKelly.com

    From: Mortgage Info By Michelle Wickett <comment-reply@wordpress.com> Reply-To: Mortgage Info By Michelle Wickett <comment+pfvnwagpo5tibsgj32_d30r@comment.wordpress.com> Date: Friday, February 7, 2014 3:21 PM To: Kristen Kelly <kristen.gielow@buildingchampions.com> Subject: [New post] MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

    Michelle Wickett MLO-62804 posted: “Forecast for the Week The economic report calendar is light this week, with reports not beginning until Thursday. Weekly Initial Jobless Claims will be released as usual on Thursday. Claims have been stuck in a tight range the past four weeks. “

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