MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

A  busy economic calendar is ahead. Plus the Fed meets.

  • In housing news, New Home Sales will be released on Monday, the S&P/Case-Shiller Home Price Index on Tuesday, and Pending Home Sales on Thursday.
  • We’ll get a sense of how the consumer is feeling with Consumer Confidence on Tuesday, followed by the Consumer Sentiment Index on Friday.
  • Also on Tuesday, Durable Goods Orders for December will be released.
  • Look for Weekly Initial Jobless Claims and Gross Domestic Product on Thursday.
  • Ending the week, Friday brings a slew of key reports, including Personal Income, Personal Spending, the inflation-measuring Personal Consumption Expenditures, and Chicago PMI.

In addition, the Federal Open Market Committee meeting kicks off on Tuesday, with the monetary policy statement set for delivery on Wednesday at 2:00 p.m. EST

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, Bonds have been on an improving trend, meaning home loan rates have also improved. The Fed meeting could have a big impact on the markets this week and I’ll be watching closely to see what happens.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday January 24, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

6 Things to Know About Going Paperless
Digital files are your best weapon in the battle to conquer clutter.

1. Stop paper buildup in its tracks. Sign up to receive online statements and bills from utilities, banks, credit card issuers and other service providers. To help stay on top of payments, sign up for your bank’s bill-paying service. Or link your accounts to Manilla.com. The tool, which includes a mobile application for Android and iPhone, organizes and stores documents online and sends alerts when bills are coming due.

2. Scan, scan, scan. A good scanner can eliminate a mountain of paper. The Fujitsu ScanSnap iX500 desktop scanner ($405 on Amazon.com) connects wirelessly to your PC, creates searchable PDFs, and can handle two-sided scanning. Once you’ve digitized those documents, take them, along with all the other unwanted items sitting on your desk or dining room table, straight to the shredder. Your community may sponsor periodic mass shredding events. A good shredder for home use is the Fellowes Powershred W-11C ($66 at Amazon.com).

3. Prepare a backup plan. Save important documents in multiple places in case your computer fails, says Julie Bestry, president of Best Results Organizing, in Chattanooga. In addition to keeping copies on an external hard drive or a flash drive, store documents using secure “cloud” services. Dropbox, for example, lets you save 2 gigabytes of data free (and you can share folders with other users). With Google Drive, you can store up to 15GB of files as well as create text documents, spreadsheets and slide shows. The free online tool Evernote lets you save PDFs, clip articles from the Web and create text documents. File items in folders and add tags for easy searching.

4. File it on the fly. A scanner that fits into a bag or suitcase can be useful for, say, digitizing handouts while you’re at a conference, says Erin Rooney Doland, editor in chief of Unclutterer.com. For example, the 12-ounce Fujitsu ScanSnap S1100 ($180 on Amazon.com) can process letter-size documents as well as receipts, postcards and business cards. And plenty of mobile apps can help you keep paper to a minimum, too, though they may not provide the image quality that a scanner does. With the free version of the CamScanner app (for Android, iPhone and Windows Phone), you can snap photos of documents with your phone’s camera and convert them to PDFs. The CamCard Free app lets you photograph business cards and store and file the contact information. With the free Bump app (for Android and iPhone), you can share your contact information by tapping your phone with phones of other app users.

5. Get a handle on receipts. To organize all of your receipts and track spending, try OneReceipt for iPhone, which lets you snap pictures of receipts and save them by using the free app or e-mailing them to your account. The tool can also automatically pull electronic receipts from your e-mail account. Not sure the store will accept an image of a receipt? Hang on to the original.

6. Paper still has a place. In addition to Social Security cards, and certificates of birth, death and marriage, you’ll want to keep estate documents, medical records, insurance policies, proof of mortgage and other loan payoffs, and titles and deeds for cars and homes.

By Lisa Gerstner, Kiplinger.com. Reprinted with permission. All Contents ©2014 The Kiplinger Washington Editors. Kiplinger.com.

Economic Calendar for the Week of January 27 – January 31
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. January 27
10:00
New Home Sales
Dec
NA
464K
Moderate
Tue. January 28
08:30
Durable Goods Orders
Dec
NA
3.4%
Moderate
Tue. January 28
09:00
S&P/Case-Shiller Home Price Index
Nov
NA
13.6%
Moderate
Tue. January 28
10:00
Consumer Confidence
Jan
NA
78.1
Moderate
Wed. January 29
02:00
FOMC Meeting
Jan
NA
0.25%
HIGH
Thu. January 30
08:30
Jobless Claims (Initial)
1/25
NA
NA
Moderate
Thu. January 30
08:30
Gross Domestic Product (GDP)
Q4
NA
4.1%
Moderate
Thu. January 30
08:30
GDP Chain Deflator
Q4
NA
2.0%
Moderate
Thu. January 30
10:00
Pending Home Sales
Dec
NA
0.2%
Moderate
Fri. January 31
08:30
Personal Spending
Dec
NA
0.5%
Moderate
Fri. January 31
08:30
Personal Consumption Expenditures and Core PCE
Dec
NA
0.1%
HIGH
Fri. January 31
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.1%
HIGH
Fri. January 31
08:30
Employment Cost Index (ECI)
Q4
NA
0.4%
HIGH
Fri. January 31
08:30
Chicago PMI
Jan
NA
60.8
HIGH
Fri. January 31
08:30
Consumer Sentiment Index (UoM)
Jan
NA
80.4
Moderate
Fri. January 31
08:30
Personal Income
Dec
NA
0.2%
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.

Equal Housing Lender

One thought on “MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s