MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Key housing and inflation reports dominate the headlines. Plus, earnings season is in full bloom.

  • Look for the closely-watched Consumer Price Index for June on Tuesday.
  • In housing news, Existing Home Sales for June will also be released on Tuesday, followed by June’s New Home Sales on Thursday.
  • Weekly Initial Jobless Claims will be reported, as usual, on Thursday. Claims continue to hover near the 300,000 level.
  • Ending the week, Durable Goods Orders for June will be delivered 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 worsened in the beginning of last week, but improved after tensions overseas caused a flight-to-safety into the Bond markets. Home loan rates remain near some of their best levels of the year and I will continue to monitor them closely.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday July 18, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Your Business Bookshelf
6 Leadership Classics Worth Reading (Or Re-Reading)

Here are six leadership classics worth reading (or re-reading) to help maximize your success:

How To Win Friends and Influence People. Dale Carnegie’s classic is a one-to-one communication manual that covers techniques for handling people, making people like you, winning people over to your way of thinking, and even helping them change (for the better!) without arousing resentment.

Wooden on Leadership: How to Create a Winning Organization. The legendary UCLA basketball coach John Wooden knows how to create winning organizations. In this book, he teaches you how to do the same through his Pyramid of Success, stressing the importance of preparation, and perhaps more importantly, the processes.

Delivering Happiness: A Path to Profits, Passion, and Purpose. Zappos CEO Tony Hsieh shares why creating an office culture that values happiness first can produce amazing results, not only in customer satisfaction, but also in employee motivation and loyalty—and your own happiness as a result.

The One Minute Manager. Ken Blanchard and Spencer Johnson’s book has sold over 13 million copies worldwide, and focuses on three techniques: clarifying the goals of your organization, giving praise to your team, and appropriately reprimanding when things go wrong… all in one minute each!

The Five Dysfunctions of a Team. This leadership “fable” by multiple-best-selling author and business consultant Patrick Lencioni reveals what’s at the heart of why teams fail—regardless of the dedication of key members—and the timeless method he uses to fix the problem.

Good to Great. Jim Collins offers the results of an exhaustive five-year study of all Fortune 500 companies. He identifies why only 11 of those companies achieved excellent long-term results, while the rest floundered under poor leadership—and how you can avoid making the same mistakes in your team.

As always, please feel free to pass these great reads along to your team, colleagues and clients!

Economic Calendar for the Week of July 21 – July 25

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. July 22
08:30
Consumer Price Index (CPI)
Jun
NA
0.4%
HIGH
Tue. July 22
08:30
Core Consumer Price Index (CPI)
Jun
NA
0.3%
HIGH
Tue. July 22
10:00
Existing Home Sales
Jun
NA
4.89M
Moderate
Thu. July 24
08:30
Jobless Claims (Initial)
7/19
NA
302K
Moderate
Thu. July 24
10:00
New Home Sales
Jun
NA
504K
Moderate
Fri. July 25
08:30
Durable Goods Orders
Jun
NA
-0.9%
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.

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.

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