MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Important manufacturing, inflation and housing reports are ahead. Plus, the minutes from the Fed’s latest meeting will be released.

  • Look for a double dose of manufacturing news, with the Empire State Index on Monday and the Philadelphia Fed Index on Thursday.
  • Two key inflation reports are ahead. The wholesale-measuring Producer Price Index will be delivered on Tuesday, followed by the Consumer Price Index on Thursday.
  • Housing news is abundant this week. The NAHB Housing Market Index comes out on Tuesday, Housing Starts and Building Permits will be released Wednesday, and Existing Home Sales follows on Thursday.
  • As usual, Weekly Initial Jobless Claims will also be announced on Thursday.

In addition, investors will be closely scrutinizing the minutes from the late October Federal Open Market Committee meeting. The minutes, which will be released on Wednesday at 2:00 p.m. EST, will reveal details of the Fed’s decision to end its latest round of Quantitative Easing. They could also give more clues as to the timing of rate hikes, which could lead to volatility in the markets.

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 continue to trade in a sideways pattern. Home loan rates remain near 18-month lows and I will continue to monitor them closely.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday November 14, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

5 Tips for Providing Constructive Feedback

Constructive feedback with colleagues and partners can yield more productive and meaningful work relationships. The next time something isn’t quite working well in a process or on a project, consider these five steps that can help.

1. Tie to a goal
Goals unite teams and provide direction. Whether you have a shared goal with a member of your network or know a colleague’s professional goal, tying feedback to that larger goal situates it in more meaningful context.

2. Ask permission
People get defensive if they are not prepared for feedback. Asking for permission puts individuals in a more open, receptive mindset.

3. Identify specific behavior
Isolating a specific behavior reinforces that constructive feedback is about a behavior and not the character or quality of the individual.

4. Offer concrete action steps
Detailed options to improve a behavior shift the conversation from the past to the future and how to best move forward.

5. Show support
End positively. Reiterate goals and values.

The following example illustrates how all five steps work together:

“Hi, John. I know we want to wrap up this project quickly, but can I mention something that could help us work more effectively?

A lot of interrelated tasks are happening at the same time. I don’t know the status of your tasks unless I leave a voicemail or send an email and wait for a response.

Could we chat on the phone each day for five minutes to keep each other in the loop? Or, could we send each other an email update each day?

I appreciate the partnership we have on this project and want to make sure nothing falls through the cracks.”

On a final note, emails lack non-verbal cues. Give feedback face-to-face or over the phone, so the recipient hears your voice or sees your facial expression to minimize reading into your message.

Sources: forbes.com, smallbusiness.chron.com

Economic Calendar for the Week of November 17 – November 21

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. November 17
08:30
Empire State Index
Nov
NA
6.2
Moderate
Tue. November 18
08:30
Producer Price Index (PPI)
Oct
NA
-0.1%
Moderate
Tue. November 18
08:30
Core Producer Price Index (PPI)
Oct
NA
0.0%
Moderate
Tue. November 18
10:00
Housing Market Index
Nov
NA
54
Moderate
Wed. November 19
08:30
Housing Starts
Oct
NA
1017K
Moderate
Wed. November 19
08:30
Building Permits
Oct
NA
1031K
Moderate
Wed. November 19
02:00
FOMC Minutes
10/29
NA
HIGH
Thu. November 20
08:30
Jobless Claims (Initial)
11/15
NA
290K
Moderate
Thu. November 20
08:30
Consumer Price Index (CPI)
Oct
NA
0.1%
HIGH
Thu. November 20
08:30
Core Consumer Price Index (CPI)
Oct
NA
0.1%
HIGH
Thu. November 20
10:00
Existing Home Sales
Oct
NA
5.17M
Moderate
Thu. November 20
10:00
Philadelphia Fed Index
Nov
NA
20.7
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. 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.

Equal Housing Lender

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