MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

The second half of the week heats up with several key reports.

  • Economic data is on the light side this week and doesn’t begin until Thursday’s release of weekly Initial Jobless Claims.
  • Also on Thursday, Retail Sales for May will be released.
  • On Friday, the Producer Price Index for May will be closely watched after April’s numbers revealed inflation pressures.
  • Preliminary Consumer Sentiment for June will also be reported 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, Bonds rallied late in the week, helping home loan rates remain near historic best levels. I’ll be watching closely to see if additional rallying continues.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday June 6, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Password Protection Primer

A few weeks ago, a high-profile cyber attack on eBay resulted in hundreds of thousands of people worried about the security of their accounts. This incident is a great reminder that there are some important and easy password practices you can follow to help keep your accounts secure.

Mix it up. The same password should never be used across multiple sites or accounts, but unfortunately many people follow this practice—even with very valuable information like bank accounts.

Password creation secrets. The longer (between 8-14 characters) and more random (do not use words that can be looked up in a dictionary), the harder your password will be to crack. You should use a mix of numbers, symbols and letters in both lower and upper cases. It is also advisable to change your passwords every month at a minimum, especially for your bank accounts.

Don’t forget. Nearly 58 percent of adults have 5 or more online passwords, and 8 percent have over 21 passwords. If you’d rather not memorize them, try a password management app such as LastPass or Password Genie, which can auto capture, randomize, categorize and store all your passwords so they stay private. Not only will this create an additional layer of protection for your accounts, you’ll never forget your passwords!

Keep your passwords safe, and please feel free to pass these tips along to your team, clients and colleagues!

Economic Calendar for the Week of June 9 – June 13

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Thu. June 12
08:30
Jobless Claims (Initial)
6/07
NA
NA
Moderate
Thu. June 12
08:30
Retail Sales
May
NA
0.1%
HIGH
Thu. June 12
08:30
Retail Sales ex-auto
May
NA
0.0%
HIGH
Fri. June 13
08:30
Producer Price Index (PPI)
May
NA
0.6%
Moderate
Fri. June 13
08:30
Core Producer Price Index (PPI)
May
NA
0.5%
Moderate
Fri. June 13
10:00
Consumer Sentiment Index (UoM)
Jun
NA
81.9
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.

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