Forecast for the Week

A slew of economic reports will be released Tuesday and Wednesday, as the markets are closed on Thursday in observance of Thanksgiving. Both Stocks and Bonds will also be closing early on Friday.

• Gross Domestic Product for the third quarter will be released on Tuesday. This is the second of three estimates for the quarter.
• Housing data will be plentiful. On Tuesday, look for the S&P/Case-Shiller Home Price Index. New Home Sales and Pending Home Sales for October will be released on Wednesday.
• We’ll get a sense of how consumers are feeling with November’s Consumer Confidence reading on Tuesday and the Consumer Sentiment Index on Wednesday.
• Also on Wednesday, look for Weekly Initial Jobless Claims, Durable Goods Orders, Personal Income, Personal Spending, the inflation-measuring Personal Consumption Expenditures, and manufacturing news via Chicago PMI.

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 have improved recently. Home loan rates remain near 18-month lows.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday November 21, 2014)

The Mortgage Market Guide View…

Productivity Points
5 Ways to Spend Your Lunch Hour

SUCCESS Magazine recently asked several entrepreneurs from the Young Entrepreneur Council to share how they get more out of their lunch hour each day. Here are five of their answers.

1. Unplug completely. When you give yourself a break to clear your head, you’ll feel more energized and may get fresh ideas. Changing gears with a book, a funny podcast or inspiring interview can also help refresh your perspective, especially on hectic days.

2. Step away from the computer. While you eat, give yourself some quiet time to write down goals, update your to do list, or plan task completion. This can ensure you finish the day strong.

3. Watch something educational. Instead of trying to multitask with a working lunch, hit rewind and watch a video on Fora.tv or take a class on Lynda.com or Khan Academy.

4. Meet someone new. Don’t turn down lunch or coffee with someone who wants to meet with you. Lunch is the perfect way to meet new contacts, discover opportunities, share your projects, or get someone else’s advice on a business problem.

5. Go outside. Studies show that long periods of sitting can be harmful to your health. A little fresh air can go a long way, but add a short, brisk walk and you’ve got the perfect tonic for a powerful second act in the afternoon.

As always, feel free to share these great tips with your team, clients and colleagues.

Source: SUCCESS Magazine, Salary.com, The JAMA Network

Economic Calendar for the Week of November 24 – November 28

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