Forecast for the Week

The economic calendar is quiet this week, but news from overseas could still cause volatility.

• On Thursday, look for Weekly Initial Jobless Claims and Retail Sales.
• Friday brings the Consumer Sentiment Index for February.

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, the strong Jobs Report and rising Stocks pressured Mortgage Bonds in recent days. However, home loan rates remain near historic lows.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday February 6, 2015)

The Mortgage Market Guide View…

Stop the Spread of the Flu at Its Peak

While flu season coincides with most of winter, its peak is in February according to the Centers for Disease Control and Prevention (CDC). If you’ve ever had the flu, you understand the aches, pains and cost of lost work time due to this virus.

The flu is most commonly spread in two ways. The first is by airborne particles left behind by a sneeze or cough from someone who is infected. The second is via hand-to-hand (or hand-to-object) contact. Everyday activities could put you and others at risk for contracting this illness.

While getting a vaccination annually is a great option to protect yourself, the following four tips can help reduce the spread of flu-related germs.

Wash your hands often. This is one of the most effective ways to stop the spread of germs. Give your hands and wrists a thorough scrubbing with soap and water throughout the day.

Cover your mouth and nose. Keep plenty of tissues on hand in the office. If you feel a cough or sneeze coming on, be sure to cover both your mouth and nose to avoid spreading any airborne particles that could infect others.

Disinfect surfaces and objects. According to the CDC, studies show that influenza germs can survive between two and eight hours on a surface. Conference room tables, phones, computer keyboards, door handles, pens and break room appliances are great breeding grounds for the spread of germs. Wipe these down frequently with disinfecting wipes.

If you are sick, stay home. Your body needs the rest, and you don’t want to infect your colleagues by spreading germs.

The spread of the flu is nothing to sneeze at. Check out the CDC Flu Activity Map to see the level of flu activity across the United States now.

Don’t be sidelined by the flu. Stay healthy by following the simple steps above, and pass the information on to your friends, family members and colleagues.

Source: CDC.gov

Economic Calendar for the Week of February 9 – February 13

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