Forecast for the Week

Housing data will be plentiful this week.

• Look for the National Association of Home Builders Housing Market Index on Monday.
• On Tuesday, Housing Starts and Building Permits will be released, followed by Existing Home Sales on Thursday.
• Also on Thursday, look for the Philadelphia Fed Index and Weekly Initial Jobless Claims.
• Friday ends the week with the Consumer Price Index.

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 rallied in recent days. Home loan rates remain attractive.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday May15, 2015)

The Mortgage Market Guide View…

Making the Most of Client Loyalty

Loyal clients are worth their weight in gold! They go out of their way for you, always seem to be the source of your best referrals, and often give you more leeway if you make a mistake. Here are five tips for leveraging your inner circle.

Revel in recommendations. If someone writes you a complimentary email, don’t lose the momentum. Ask them to post it as a LinkedIn recommendation on your profile, or as a review on Yelp. When you knock the ball out of the park, make the most of it!

Connect your key contacts. Bring all your best clients into contact with each other by hosting a social event, after-work mixer or a “TED talk” styled event. This creates great networking opportunities for your clients, and positions you as a go-to leader.

Make an introduction. If you think two of your clients might especially benefit from knowing each other, introduce them one-on-one.

Conference confluence. Attend a conference with a loyal client. You will get quality time offsite, and may gain introductions to potential new contacts.

Ask and receive. The most straightforward way to new business is asking more often. Before you conclude calls or meetings, simply ask, “Is there anyone else you can think of who might need to talk with me this week?” Also, an email signature that says, “Your referrals are our #1 source of business. Thank you!” makes a great reminder.

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

Sources: The Ackert Advisory, Forbes

Economic Calendar for the Week of May 18 – May 22

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