MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Jobs data will be front and center this week, along with a key manufacturing report.

  • On Monday, the ISM Manufacturing Index will be closely watched by market players for any signs of a slowdown to begin 2014.
  • Wednesday brings the ISM Services Index and the ADP Report.
  • As usual, Weekly Initial Jobless Claims will be released on Thursday. Last week’s number was the highest since mid-December.
  • That leads us to Friday’s Non-farm Payrolls and the Unemployment Rate, which will be closely dissected by both Wall Street and the Federal Reserve.

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 and home loan rates have improved while Stocks have struggled after the Fed’s decision to further taper its Bond purchases. I’ll continue to monitor this story closely.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday January 31, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Sales Smarts
6 Habits of Highly Successful Connectors

Networking is important for finding prospects, referral sources, and bringing in new business…but networking won’t get you anywhere all by itself. If you want networking to yield the best results, you’ve got to be a good connector!

Back in 1936, Dale Carnegie published the timeless business classic How to Win Friends and Influence People. In it he describes “six ways to make people like you” and it is the foundation for connecting with others.

1. Be genuinely interested in people. Passion is an infectious quality, and being interested in other people’s success requires passion.

2. Smile. According to Carnegie you should smile a lot…even when you’re talking on the phone! Modern research shows that facial expressions and body language aren’t just a reflection of emotions, they can actually influence them.

3. Remember their name. Carnegie says there is no sweeter sound to people than their own name. If you have trouble with names here are five tricks that can help.

4. Encourage people to talk about themselves. Asking lots of questions doesn’t just reinforce you care about people, it gives you information for making relevant contact later on. The rule of thumb is “two ears, one mouth.” In other words, listen twice as much as you talk.

5. Then…talk in term of their interests. When it’s your turn to talk, frame things in light of the other person’s interests. Stay on topic and ask their opinion—you should quickly be able to keep any conversation going for as long as someone is willing to speak to you.

6. Make sure people know they are important. There are many ways you can let people know they are important—”thank you notes” are one way. But if you deal with clients on a regular basis, aside from doing a good job, make sure the system you create for delivering that service is both intentional and unique. When you give people a great experience, they will return to you again and again.

Give these helpful tips a try and feel free to pass them along to your team, clients, and colleagues.

Economic Calendar for the Week of February 03 – February 07
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. February 03
10:00
ISM Index
Jan
NA
57.0
HIGH
Wed. February 05
08:15
ADP National Employment Report
Jan
NA
238K
HIGH
Wed. February 05
10:00
ISM Services Index
Jan
NA
53.0
Moderate
Thu. February 06
08:00
Productivity
Q4
NA
3.0%
Low
Thu. February 06
08:30
Jobless Claims (Initial)
2/01
NA
348K
Moderate
Fri. February 07
08:30
Non-farm Payrolls
Jan
NA
74K
HIGH
Fri. February 07
08:30
Unemployment Rate
Jan
NA
6.7%
HIGH
Fri. February 07
08:30
Average Work Week
Jan
NA
34.4
HIGH
Fri. February 07
08:30
Hourly Earnings
Jan
NA
0.1%
HIGH

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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