MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

A busy week is ahead, with key readings on consumer spending and income, inflation, manufacturing, and the all-important Jobs Report for January.

  • Economic data kicks off on Monday with Personal Income, Personal Spending and Personal Consumption Expenditures (the Fed’s favorite measure of inflation).
  • Also on Monday, look for manufacturing news via the ISM Index. Wednesday brings the ISM Services Index.
  • The ADP National Employment Report will be released on Wednesday.
  • On Thursday, we’ll get a read on Productivity for 4Q 2014 and Weekly Initial Jobless Claims.
  • Friday is the big day with the January Jobs Report, which includes Non-farm Payrolls and the Unemployment Rate.

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 improved recently due to mixed corporate earnings and some weaker than expected reports. Home loan rates remain near historic lows.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday January 30, 2015)

Japanese Candlestick Chart
The Mortgage Market Guide View…

Overused Buzzwords on LinkedIn Profiles

LinkedIn recently released its annual survey of the most overused buzzwords in user profiles. Avoiding these clichés is essential if you want your profile to stand out from the crowd:

Expert. Calling yourself an expert is bad form. Rather than merely claim expertise, let others you’ve worked with do it on your behalf: ask for recommendations!

Track record. Many people have a “proven track record” these days, but few actually prove it with details about their achievements—list those instead.

Responsible. This passive descriptor is unnecessary once you demonstrate how responsible you are. Utilize the Skills & Endorsements section of LinkedIn to prove it.

Driven. Show people how driven you are by including side projects, memberships, continuing education, certifications and any of your volunteer activities.

Creative. Leverage the full power of LinkedIn by adding relevant collateral, videos, documents, presentations or pictures to your profile.

Passionate. Results reveal your passion more than anything else. If you can provide percentages, conversion numbers or other hard data, don’t be shy about these.

Please feel free to pass these helpful LinkedIn tips along to your team, clients and colleagues!

Source: LinkedIn

Economic Calendar for the Week of February 2 – February 6

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. February 02
08:30
Personal Income
Dec
NA
0.4%
Moderate
Mon. February 02
08:30
Personal Spending
Dec
NA
0.6%
Moderate
Mon. February 02
08:30
Personal Consumption Expenditures and Core PCE
Dec
NA
0.0%
HIGH
Mon. February 02
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.4%
HIGH
Mon. February 02
10:00
ISM Index
Jan
NA
55.5
HIGH
Wed. February 04
10:00
ISM Services Index
Jan
NA
56.2
Moderate
Wed. February 04
08:15
ADP National Employment Report
Jan
NA
241K
HIGH
Thu. February 05
08:30
Productivity
Q4
NA
2.3%
Moderate
Thu. February 05
08:30
Jobless Claims (Initial)
1/31
NA
NA
Moderate
Fri. February 06
08:30
Non-farm Payrolls
Jan
NA
252K
HIGH
Fri. February 06
08:30
Average Work Week
Jan
NA
34.6
HIGH
Fri. February 06
08:30
Unemployment Rate
Jan
NA
5.6%
HIGH
Fri. February 06
08:00
Hourly Earnings
Jan
NA
-0.2%
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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