Forecast for the Week 
- Housing data kicks off on Tuesday with the S&P/Case-Shiller Home Price Index and Existing Home Sales, followed by New Home Sales on Wednesday.
- Consumer Confidence will be released on Tuesday, while the Consumer Sentiment Index is coming on Friday.
- Durable Goods Orders join weekly Initial Jobless Claims on Thursday.
- Friday brings the second read on fourth quarter 2015 Gross Domestic Product, along with Personal Income, Personal Spending and the Fed’s favorite inflation gauge, Personal Consumption Expenditures.
When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices 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, Mortgage Bonds rallied recently, keeping home loan rates in historic territory.
Chart: Fannie Mae 3.5% Mortgage Bond (Friday February 19, 2016)
The Mortgage Market Guide View…
New Mileage Rates From IRS
If you drive a car, truck or van for work, you’ll want to know the standard mileage rates the IRS has set for 2016. These rates are used to calculate deductible costs for driving an automobile for business, medical and moving purposes, as well as driving for charitable purposes.
As of January 1, 2016, the standard mileage rates for the use of automobiles (including cars, vans, pickups and panel trucks) are calculated at:
- Business: 54 cents per mile (down from 57.5 cents for 2015)
- Medical or moving: 19 cents per mile (down from 23 cents for 2015)
- Charitable organizations: 14 cents per mile
A few of the rates have decreased since last year. According to the IRS, rates are based on an annual study of the fixed and variable costs of operating an automobile. Recent dramatic drops in fuel prices have lead to the decreases.
Before you calculate your deduction, make sure you qualify. Taxpayers cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.
Other requirements for calculating the amount of deductible business, moving, medical or charitable expense can be found in this IRS publication.
The IRS provides the standard mileage rate for ease and convenience only. If you prefer, you may calculate the actual costs of using your vehicle instead of using the standard mileage rates. Check to see which saves you the most!
Economic Calendar for the Week of February 22 – February 26
|
Date
|
ET
|
Economic Report
|
For
|
Estimate
|
Actual
|
Prior
|
Impact
|
| Tue. February 23 |
09:00
|
S&P/Case-Shiller Home Price Index |
Dec
|
NA
|
5.8%
|
Moderate
|
|
| Tue. February 23 |
10:00
|
Consumer Confidence |
Feb
|
NA
|
98.1
|
Moderate
|
|
| Tue. February 23 |
10:00
|
Existing Home Sales |
Jan
|
NA
|
5.46M
|
Moderate
|
|
| Wed. February 24 |
10:00
|
New Home Sales |
Jan
|
NA
|
544K
|
Moderate
|
|
| Thu. February 25 |
08:30
|
Jobless Claims (Initial) |
2/20
|
NA
|
NA
|
Moderate
|
|
| Thu. February 25 |
08:30
|
Durable Goods Orders |
Jan
|
NA
|
-5.0%
|
Moderate
|
|
| Fri. February 26 |
08:30
|
Personal Consumption Expenditures and Core PCE |
YOY
|
NA
|
1.4%
|
HIGH
|
|
| Fri. February 26 |
08:30
|
Personal Consumption Expenditures and Core PCE |
Jan
|
NA
|
0.0%
|
HIGH
|
|
| Fri. February 26 |
08:30
|
Personal Spending |
Jan
|
NA
|
0.0%
|
Moderate
|
|
| Fri. February 26 |
08:30
|
Personal Income |
Jan
|
NA
|
0.3%
|
Moderate
|
|
| Fri. February 26 |
08:30
|
GDP Chain Deflator |
Q4
|
NA
|
0.8%
|
Moderate
|
|
| Fri. February 26 |
08:30
|
Gross Domestic Product (GDP) |
Q4
|
NA
|
0.7%
|
Moderate
|
|
| Fri. February 26 |
10:30
|
Consumer Sentiment Index (UoM) |
Feb
|
NA
|
92.0
|
Moderate
|
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Mortgage Info By Michelle Wickett 