MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

A full slate of economic reports is ahead, plus the Fed meets!

  • On the housing front, look for the S&P/Case-Shiller Home Price Index on Tuesday and Pending Home Sales on Wednesday.
  • Consumer Confidence will be reported on Tuesday, followed by the Consumer Sentiment Index on Friday.
  • On Wednesday, Gross Domestic Product will give us an important read on the U.S. economy during the first quarter of 2015.
  • Look for news from the manufacturing sector via the Chicago PMI on Thursday and the ISM Index on Friday.
  • The Fed’s favorite measure of inflation, Personal Consumption Expenditures, will be released on Thursday, along with the Employment Cost Index, Weekly Initial Jobless Claims, Personal Income and Personal Spending.

In addition, the Fed meets this week, with the Monetary Policy Statement due to be released on Wednesday. Investors will be listening closely for any hints as to when the Fed may raise the Fed Funds Rate (the rate banks charge each other to lend money overnight), and this news could lead to volatility in the markets.

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 remain in a tight trading range. Home loan rates are hovering near record lows.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday April 24, 2015)

Japanese Candlestick Chart
The Mortgage Market Guide View…

Alert: Facebook Video Scam

A “malicious tagging” scam is making its way around Facebook, putting multiple operating systems and devices at risk, including computers, smartphones and video game systems.

How It Works
A post appears in your Facebook news feed that seems to link to a funny video. This link will look like it is tagged by 20 of your friends to dupe you into thinking the link is safe. However, once you click on the video, a second link pops up saying the video cannot be played without updating your Adobe Flash Player. If you click the second link to download the update you will download malware, giving hackers access to your logins and personal data.

NOTE: A variant of this scam sends you to download a Chrome or Firefox browser video plugin.

How to Protect Yourself
First, never accept system or software updates from third party links like pop-ups on social networks or web pages. If you suspect your Adobe Flash Player or other software may be out of date, go directly to the developer’s website and download it.

Second, ask yourself if your friends or associates would post this material, and if they know each other well enough to be tagged on the same feed. Also, make sure you have anti-malware installed on your machine: AVG (freeware) or McAfee (subscription) are two options. But beware that even if you have this protection, being judicious with the links you click is the best policy.

Finally, adjust your Facebook privacy settings to ask permission to display content you’re tagged in. This will limit the spread of scams in case you do fall prey to one. Simply set the Timeline Review option in your Facebook Privacy Settings.

As always, feel free to pass these helpful tips along to your team, clients and colleagues!

Sources: Bottom Line, HotforSecurity.com

Economic Calendar for the Week of April 27 – May 1

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. April 28
09:00
S&P/Case-Shiller Home Price Index
Feb
NA
4.6%
Moderate
Tue. April 28
10:00
Consumer Confidence
Apr
NA
101.3
Moderate
Wed. April 29
08:30
Gross Domestic Product (GDP)
Q1
NA
2.2%
Moderate
Wed. April 29
08:30
GDP Chain Deflator
Q1
NA
0.1%
Moderate
Wed. April 29
10:00
Pending Home Sales
Mar
NA
3.1%
Moderate
Wed. April 29
02:00
FOMC Meeting
Apr
NA
0.25%
HIGH
Thu. April 30
09:45
Chicago PMI
Apr
NA
46.3
HIGH
Thu. April 30
08:30
Employment Cost Index (ECI)
Q1
NA
0.6%
HIGH
Thu. April 30
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.4%
HIGH
Thu. April 30
08:30
Personal Consumption Expenditures and Core PCE
Mar
NA
0.1%
HIGH
Thu. April 30
08:30
Personal Spending
Mar
NA
0.1%
Moderate
Thu. April 30
08:30
Personal Income
Mar
NA
0.4%
Moderate
Thu. April 30
08:30
Jobless Claims (Initial)
4/25
NA
295K
Moderate
Fri. May 01
10:00
Consumer Sentiment Index (UoM)
Apr
NA
95.9
Moderate
Fri. May 01
10:00
ISM Index
Apr
NA
51.5
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

Tell me what you think

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s