Forecast for the Week

The economic calendar is packed with key reports on inflation, housing, manufacturing and more.

• Economic data begins on Tuesday with Retail Sales, which will gauge the level of consumer spending in March.
• The Fed will be closely watching two inflation reports this week for any signs of pricing pressures: the wholesale-measuring Producer Price Index on Tuesday and the Consumer Price Index on Friday.
• In the manufacturing sector, look for the Empire State Index on Wednesday and the Philadelphia Fed Index on Thursday.
• Over in housing, the NAHB Housing Market Index will be released on Wednesday, while Thursday brings Housing Starts and Building Permits.
• Weekly Initial Jobless Claims will be released on Thursday, as usual.
• Ending the week, look for the Consumer Sentiment Index on Friday.

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 been in a sideways pattern in recent days. Home loan rates remain near record lows.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday April 10, 2015)

The Mortgage Market Guide View…

3 Simple Steps to Reshop Your Cell-Phone Plan

These tips can help you save big.

Step 1
Match a plan with your usage patterns. At www.wirefly.com, enter the type of phone you want, the number of minutes and text messages and the amount of data you typically use in a month, whether you prefer having a contract or not, and the number of phone lines you’d like. The tool will produce a list of suitable plans and prices. A basic prepaid plan may be a good fit for casual users, but if you stream video or music regularly, look into a plan with bountiful data. If you crave the newest devices, focus on an early-upgrade plan that allows you to trade in your phone after you’ve made a certain number of payments.

Step 2
Look for deals. Wireless carriers are battling to grab your business. But check the fine print and do the math to make sure you’re getting a better deal. For example, Sprint recently promised AT&T and Verizon customers that they would pay half their current plan’s monthly price if they switched to a similar Sprint plan. Sprint also offered to reimburse any early-termination fees and to waive activation fees. But you have to buy a new Sprint phone at full retail price (or agree to a leasing program), and you must trade in your old phone or pay a $200 fee. In addition, the plan price may jump when you eventually upgrade your device.

Step 3
Check network coverage in your area. Ask neighbors, coworkers and friends who have service with carriers you’re considering about the reception. At www.rootmetrics.com, you can check your location on a coverage map to see network performance based on RootMetrics’ testing.

The payoff
You may find a better wireless plan at a lower price.

By the editors of Kiplinger’s Personal Finance, Kiplinger.com

Reprinted with permission. All Contents ©2015 The Kiplinger Washington Editors. Kiplinger.com

Economic Calendar for the Week of April 13 – April 17

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