Forecast for the Week 
After last week’s big reports and the Fed meeting, this week’s economic calendar is on the light side.
- The week kicks off on Monday with the ISM Services Index, a national non-manufacturing index.
- Productivity for the first quarter of 2014 will be delivered on Wednesday.
- Initial Jobless Claims will be delivered, as usual, on Thursday. Last week’s claims surged to 344,000, the highest level since the end of February.
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, Bonds and home loan rates were able to rally last week despite the volatility. With a quiet economic calendar ahead, Bonds could be taking their cue from Stocks this week, and I’ll be watching the markets closely.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday May 2, 2014)
Home Inventory Made Easy
Here’s a tip you can use yourself and pass along to your clients, friends and family members—whether they’ve owned their home for decades or they’re just settling into homeownership.
Imagine the nightmare of having your home damaged or destroyed. To make matters worse, imagine trying to remember the contents of your home for insurance reporting and replacement.
Would you even be able to remember?
Unfortunately, this is the exact situation thousands of Americans find themselves in every year. Now’s the time to make sure it never happens to you! Here’s how:
Homeowners can create a home inventory list with ease thanks to free access to the Insurance Information Institute’s “Know Your Stuff®” software. The software is user friendly and takes just four easy-to-follow steps. Plus, it provides free secure storage online so you can be certain your inventory is accessible in the event your home is destroyed, and it’s also available as a smartphone app.
After the quick setup, you create a name for each room in your home—for example, kitchen, living room, family room, or master bedroom—and simply add the items each room contains. A drop down list is available with the most common household items, as well as the specific information required by insurance companies in case a claim needs to be filed.
Want to add a picture or a receipt for a large ticket item? No problem, just upload the image.
Once the home inventory is completed, it’s a good idea to have your insurance agent review the list just to make sure your home has adequate coverage.
Check it out at www.knowyourstuff.org.
Economic Calendar for the Week of May 5 – May 9
|
Date
|
ET
|
Economic Report
|
For
|
Estimate
|
Actual
|
Prior
|
Impact
|
| Mon. May 05 |
10:00
|
ISM Services Index |
Apr
|
54.1
|
53.1
|
Moderate
|
|
| Wed. May 07 |
08:30
|
Productivity |
Q1
|
0.3%
|
1.8%
|
Moderate
|
|
| Thu. May 08 |
08:30
|
Jobless Claims (Initial) |
5/03
|
328K
|
344K
|
Moderate
|
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Mortgage Info By Michelle Wickett 