Forecast for the Week

After last week’s heavy-hitters, this week’s calendar features just a few economic reports.

• On Monday, look for the ISM Services Index, which is a national non-manufacturing index.
• Wednesday brings the minutes from the March meeting of the Federal Open Market Committee.
• Weekly Initial Jobless Claims will be reported, as usual, on Thursday.

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 rallied in recent days, helping home loan rates remain near historic lows.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday April 3, 2015)

The Mortgage Market Guide View…

4 Keys to Communicating Change

Change is inevitable. Teams change. Jobs change. Policies and processes change. Technologies change.

Managing change is not always easy, but effectively communicating change of any kind is essential to success. Here are four ideas that can help:

Use a variety of communication methods. Everyone has a unique perspective based on prior experiences. This shapes what they hear, how they interpret it, and how they react. No one message or delivery will resonate with everyone. Some people may need to hear and read messages many times in different formats to be comfortable. Understanding this can help you prepare a wider-reaching communication strategy.

Honesty is key. People will speculate and try to read between the lines of what is being communicated. To minimize this, communicate honestly with concrete details.

Frequency is essential. Every implementation plan should have a communication strategy that ensures ongoing, predictable communication cycles through a variety of media before, during and after implementation. Each audience (e.g., clients, employees, vendors, partners and regulatory agencies) will have different needs. If you have nothing new to report, reiterate what was shared previously about timelines, deadlines and deliverables.

You must learn and adapt. As you communicate, keep your ear to the ground and listen for opportunities to adapt your strategy or clarify a message.

Feel free to pass these helpful tips along to your team, clients and colleagues.

Economic Calendar for the Week of April 6 – April 10

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