MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Housing data highlights a week filled with key reports, plus the minutes from the July Federal Open Market Committee (FOMC) meeting could move the markets.
  • Look for news from the manufacturing sector with the Empire State Index on Monday and the Philadelphia Fed Index on Thursday.
  • Housing reports begin on Monday with the NAHB Housing Market Index. Housing Starts and Building Permits follow on Tuesday, while Existing Home Sales will be released Thursday.
  • On Wednesday, investors will closely dissect inflation numbers with July’s reading of the Consumer Price Index.
  • Wednesday’s release of the July FOMC Meeting Minutes has the potential to move the markets.
  • As usual, Weekly Initial Jobless Claims will be released on Thursday.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, 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 are 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, the seesaw trading pattern and volatility has continued in the Mortgage Bond market. Home loan rates remain near historic lows.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday August 14, 2015)

Japanese Candlestick Chart
The Mortgage Market Guide View…
Breaking Bad Email Habits

While email is an efficient way to communicate, it is also a medium ripe for misinterpretation of tone and mood. Here are four ways to avoid the subtlest blunders:
  1. CC and Reply All. Indiscriminately “CCing” or hitting “Reply All” to group emails can be annoying to other recipients to whom your reply may not apply. Determine if all recipients actually need to receive your response before sending to a large group.
  2. Being too brief. If someone takes the time to type a detailed outline of important issues, they may expect an equally thoughtful response. Unless you are asked for a simple acknowledgement of receipt, be sure to compose your reply with equal care.
  3. URGENT subjects lines. “URGENT” or “ASAP” in the subject line can be disrespectful of your recipients’ time and attention if the matter isn’t in fact urgent. Save these types of emails for emergencies only, and for truly urgent matters consider making a phone call.
  4. Critiquing and criticism. Even well-meaning and constructive criticism can be severely misconstrued. If people are unable to hear your tone of voice, they can read into the connotations of written words and imagine a tone all their own. When you must deliver negative feedback, a phone call is a better choice.

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

Source: Inc.com

Economic Calendar for the Week of August 17 – August 21

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. August 17
08:30
Empire State Index
Aug
NA
3.9
Moderate
Mon. August 17
10:00
Housing Market Index
Aug
NA
60
Moderate
Tue. August 18
08:30
Housing Starts
Jul
NA
1174K
Moderate
Tue. August 18
08:30
Building Permits
Jul
NA
1343K
Moderate
Wed. August 19
08:30
Consumer Price Index (CPI)
Jul
NA
0.3%
HIGH
Wed. August 19
08:30
Core Consumer Price Index (CPI)
Jul
NA
0.2%
HIGH
Wed. August 19
02:00
FOMC Minutes
7/29
NA
NA
HIGH
Thu. August 20
08:30
Jobless Claims (Initial)
8/15
NA
274K
Moderate
Thu. August 20
10:00
Existing Home Sales
Jul
NA
5.49M
Moderate
Thu. August 20
10:00
Philadelphia Fed Index
Aug
NA
5.7
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.

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