Forecast for the Week

After Monday’s market closure in celebration of Columbus Day, the second half of the week features a busy economic calendar.

• Wednesday brings a full slate of reports, including the Producer Price Index (which measures inflation at the wholesale level) and Retail Sales.
• Also on Wednesday, look for news from the manufacturing sector with the Empire State Index. The Philadelphia Fed Index will be released on Thursday.
• Weekly Initial Jobless Claims will be reported, as usual, on Thursday. Claims continue to hover near the 300,000 mark.
• Several key housing reports will be released at the end the week, including the National Association of Home Builders Housing Market Index on Thursday, followed by Housing Starts and Building Permits on Friday.
• And last but not least, the Consumer Sentiment Index will also be released on Friday.

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 have improved recently, helping home loan rates remain near their best levels in the last year.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday October 10, 2014)

The Mortgage Market Guide View…

7 Steps to Creating a Great Customer Experience

Providing a memorable customer experience doesn’t require bells and whistles. The bottom line is people want to feel appreciated and valued. Paying attention to the basics below will yield big results.

Make it easy. Map out your customers’ experience and analyze it from their perspective. When do they first engage with you? When do they stop? What happens each step of the way? Identify ways to make it easier for them to do business with you.

Smile and greet people. Whether in person or on the phone, smile and be welcoming. Your voice and demeanor will make customers feel valued.

Offer options. It happens. When you’re not able to meet a customer’s need for a specific product or service, don’t just say no. Offer options. These may be alternative products or services, or recommending a different organization. Offering options shows you’re listening and you care.

Embrace criticism. Good suggestions aren’t always wrapped in the prettiest of packages. Move beyond your customers’ approach and listen to the issues they are expressing. Identify opportunities to improve the customer experience.

Preserve the relationship. Satisfied customers are a great source for repeat business and referrals. When you’ve concluded a transaction or consultation, say, “Please give me a call if I can be of further assistance.” Ask for referrals, and make sure you provide contact information.

Always say thank you. You learned this lesson as a toddler. Your customers will feel valued when you say thanks, be it for stopping in, offering feedback, or choosing you to meet their needs.

Send a handwritten note. While emails and texting have made it easier to communicate quickly, nothing beats a handwritten note. These timeless treasures show you made the extra effort to reach out.

As always, please feel free to pass these tips along to your team, colleagues and clients!

Economic Calendar for the Week of October 13 – October 17

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