MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

A jam-packed economic calendar is ahead, plus there will be important meetings overseas regarding Greece’s potential default. Volatility could be rampant.

  • Economic data kicks off on Monday with Existing Home Sales, followed by New Home Sales on Tuesday.
  • Also on Tuesday, look for Durable Goods Orders, which are orders for items that last an extended period of time.
  • On Wednesday, the final reading for first quarter Gross Domestic Product will be closely watched for signs of economic growth.
  • Thursday brings Personal Income, Personal Spending, Personal Consumption Expenditures (the Fed’s favorite measure of inflation), and Weekly Initial Jobless Claims.
  • 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 rebounded in recent days, keeping home loan rates at historically low levels. However, market sentiment can change quickly so I’ll be watching things closely in the week ahead.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday June 19, 2015)

Japanese Candlestick Chart
The Mortgage Market Guide View…

Keeping Business Simple

KISS is an acronym for “Keep It Simple, Stupid” and was coined by U.S. Navy engineers in 1960 to stress the importance of building aircrafts that could be repaired on the battlefield by a regular mechanic using only basic tools. Essentially, the KISS principle states that most systems work better when they are simple rather than complex.

The same goes for business, no matter what the industry or niche. If you don’t keep things simple, it’s a recipe for unnecessary stress and, worst case scenario, losing business.

Here are a few ideas on how to keep things simple in your business:

Identify the need you fulfill. Whether you sell homes or financial services, you are fulfilling an emotional or psychological need for your clients that has nothing to do with real estate or Stocks and Bonds. Focus on the top three such needs you fulfill.

Build your plan around serving those needs. This is about limiting yourself. You may have the ability to offer other services that don’t serve the core need of your market, but avoid the temptation to use them if possible. The likelihood of confusing your prospects and customers is too high to justify the value you think you’re creating.

Don’t get too elaborate with systems, especially those that impact customer service. While every business should have processes for every detail of that business, the more common sense they are the better. If yours are intuitive and easy to perform for both staff and clients, they are going to be win-win.

Stay focused. If you’re in business to sell houses or do financial planning, don’t extend your brand to include staging or insurance—or anything else you can think of that might dilute your ability to perform those three core emotional/psychological needs.

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

Economic Calendar for the Week of June 22 – June 26

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. June 22
10:00
Existing Home Sales
May
NA
5.04M
Moderate
Tue. June 23
01:00
Durable Goods Orders
May
NA
-1.0%
Moderate
Tue. June 23
01:00
New Home Sales
May
NA
517K
Moderate
Wed. June 24
01:00
Gross Domestic Product (GDP)
Q1
NA
-0.7%
Moderate
Wed. June 24
01:00
GDP Chain Deflator
Q1
NA
-0.1%
Moderate
Thu. June 25
01:00
Personal Consumption Expenditures and Core PCE
YOY
NA
1.2%
HIGH
Thu. June 25
01:00
Personal Consumption Expenditures and Core PCE
May
NA
0.1%
HIGH
Thu. June 25
01:00
Personal Spending
May
NA
0.0%
Moderate
Thu. June 25
01:00
Personal Income
May
NA
0.4%
Moderate
Thu. June 25
08:30
Jobless Claims (Initial)
6/20
NA
267K
Moderate
Fri. June 26
10:00
Consumer Sentiment Index (UoM)
Jun
NA
94.6
Moderate

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_Opportunity

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 )

Connecting to %s