MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Housing and manufacturing data dominate the headlines. Plus, the Fed meets.

  • Manufacturing data from the Empire State Index will be reported on Monday, followed by the Philadelphia Fed Index on Thursday.
  • The National Association of Home Builders Housing Market Index will be released on Monday, while Housing Starts and Building Permits follow on Tuesday. These reports will be closely scrutinized for any signs of a slowdown.
  • The Consumer Price Index, which measures consumer inflation, will be delivered on Tuesday.
  • Weekly Initial Jobless Claims will be announced on Thursday.

In addition, the two-day Federal Open Market Committee meeting begins Tuesday, with the monetary policy statement being delivered on Wednesday. Currently, the Fed is purchasing $20 billion per month in Mortgage Bonds and $25 billion per month in Treasury securities in an effort to spur on both economic and job growth. If the Fed further eases back on its purchases, it could spell trouble for Bonds and home loan rates.

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 stabilized in the latest week due to weaker than expected reports on Retail Sales and Consumer Sentiment. I’ll be watching the markets closely this week, as the Fed meeting could lead to volatility

Chart: Fannie Mae 3.5% Mortgage Bond (Friday June 13, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Watch Out for a New Craigslist Scam
Here’s how to avoid becoming a victim of the latest con targeting bargain hunters who use this classifieds site.

Craigslist.org, the online classifieds listing for communities across the country, can be a great way to find a good deal on a variety of items, ranging from clothing to furniture to cars. However, the Better Business Bureau is warning bargain hunters that use the site to watch out for a new, elaborate scam.

The scam typically involves listings for big-ticket items, such as a car or boat, at lower-than-average prices. Potential buyers who e-mail the seller are asked to make purchases through a company called Easy Yard Sale. The company has a Web site that looks legitimate, and the seller claims that he is using the company to help quickly sell items he inherited from his deceased father, according to the BBB.

To complete the purchase, buyers are asked to wire money to Easy Yard Sale, which will ship the item. But items are never delivered, and the seller and Easy Yard Sale aren’t responding to e-mails, according to the BBB. At last check the Easy Yard Sale Web site was no longer reachable.

To avoid scams on Craigslist, BBB recommends that you follow these tips:

Meet the seller and see the item. Whenever possible, and especially when you’re buying locally, don’t purchase anything before you actually see it so you know it exists and is in good condition.

Buy directly from sellers, not escrow or shipping services. According to the BBB, there are other scams involving fraudulent services and companies such as Easy Yard Sale that con artists use to make it difficult for bilked consumers to track payments and get their money back. So if a seller asks you to use a third party, request to make the purchase directly from the seller. If he or she balks, it could be a red flag.

Never wire funds or use a pre-paid debit card. Once you send money using these methods of payment, it’s nearly impossible to reverse the transaction or trace the money.

For more on avoiding fraud and identity theft, see our Scams Special Report.

By Cameron Huddleston, Kiplinger.com

Reprinted with permission. All Contents ©2014. The Kiplinger Washington Editors. Kiplinger.com

Economic Calendar for the Week of June 16 – June 20

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. June 16
08:30
Empire State Index
Jun
NA
19.0
HIGH
Mon. June 16
10:00
Housing Market Index
Jun
NA
45
Moderate
Tue. June 17
08:30
Housing Starts
May
NA
1072K
Moderate
Tue. June 17
08:30
Building Permits
May
NA
1080K
Moderate
Tue. June 17
08:30
Consumer Price Index (CPI)
May
NA
0.3%
HIGH
Tue. June 17
08:30
Core Consumer Price Index (CPI)
May
NA
0.2%
HIGH
Thu. June 19
08:30
Jobless Claims (Initial)
6/14
NA
317K
Moderate
Thu. June 19
10:00
Philadelphia Fed Index
Jun
NA
15.4
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.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Market Guide, LLC does not grant to you a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Equal Housing Lender

Tell me what you think

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s