Forecast for the Week 
Economic data is light this week and doesn’t begin until Thursday.
- On Thursday, we’ll get a look at consumer spending with February Retail Sales.
- Also on Thursday, Weekly Initial Jobless Claims will be reported. Last week’s claims fell by 26,000 to 323,000, below expectations and the lowest level since November.
- On Friday, look for February’s Producer Price Index, which measures inflation at the wholesale level, as well as the Consumer Sentiment Index for March.
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 worsened last week due to better than expected economic data. However, home loan rates remain near historic lows and I’ll continue to monitor their movement closely.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday March 07, 2014)
The Mortgage Market Guide View…
Business Breakthroughs
Answer These 5 Questions about Your Business
Creating a positive experience for your clients is a huge component of success for any business. So is effectively communicating your message and differentiators. Here are five questions that can help:
1. What makes me different? What you do and how you do it should stand out from the crowd. If it looks exactly the same as everyone else in your line of work, you may not be as successful as you could be. Read 5 Tips for Using Competitive Differentiators to Build Your Business Brand.
2. Do I tell people I’m different? You may have the greatest system or service in the world, but if nobody knows it, your business will fail. Read 7 Tips for Getting Your Marketing Message Right.
3. How is my voice? Making sure you and your employees communicate a distinct and consistent message in person, on the phone, and over social media is critical.
4. Am I building a community? Get active on social media, make friends in your community, and figure out ways to become well-known within circles of influence that can feed clients to you. Ideas include fundraisers, charity events, civic events, and even workshops you host.
5. Am I reliable? Make sure you have thorough and tested systems in place so you don’t get the kind of reputation that could kill your business.
Feel free to pass these tips along to your team, clients, and colleagues.
Economic Calendar for the Week of March 10 – March 14
|
Date
|
ET
|
Economic Report
|
For
|
Estimate
|
Actual
|
Prior
|
Impact
|
| Thu. March 13 |
08:30
|
Jobless Claims (Initial) |
3/08
|
329K
|
323K
|
Moderate
|
|
| Thu. March 13 |
08:30
|
Retail Sales |
Feb
|
0.2%
|
-0.4%
|
HIGH
|
|
| Thu. March 13 |
08:30
|
Retail Sales ex-auto |
Feb
|
0.2%
|
0.0%
|
HIGH
|
|
| Fri. March 14 |
08:30
|
Producer Price Index (PPI) |
Feb
|
0.2%
|
0.2%
|
Moderate
|
|
| Fri. March 14 |
08:30
|
Core Producer Price Index (PPI) |
Feb
|
0.1%
|
0.2%
|
Moderate
|
|
| Fri. March 14 |
10:00
|
Consumer Sentiment Index (UoM) |
Mar
|
82.0
|
81.6
|
Moderate
|
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Mortgage Info By Michelle Wickett 