MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Housing dominates the headlines this week with several important reports.

  • Housing news kicks off on Monday with the National Association of Home Builders Housing Market Index. In addition, July Housing Starts and Building Permits will be reported on Tuesday, followed by July Existing Home Sales on Thursday.
  • The closely watched Consumer Price Index will be released on Tuesday, and investors will be looking to see if there are any inflation pressures at the consumer level.
  • Weekly Initial Jobless Claims will be reported on Thursday, along with news from the manufacturing sector via the Philadelphia Fed Index.

In addition, the minutes from the Fed’s July meeting of the Federal Open Market Committee will be released on Wednesday and those always have the potential to move the markets.

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 benefitted from news here at home and overseas. I’ll continue to monitor their movement closely.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday August 15, 2014)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Feeling Stuck?
4 Steps to Getting Back on Track

If you’re feeling stuck—whether in work, relationships, business partnerships or life in general—and can’t figure out how to get yourself moving again, best-selling author and columnist Paul B. Brown has a plan.

In his latest book, Own Your Future: How to Think Like an Entrepreneur and Thrive in an Unpredictable Economy, Brown shares four easy steps for getting unstuck.

Step 1: Know what you want. What is the result you’re aiming for? Don’t worry if the objective is vague—and don’t be overly committed to any single plan or strategy, as those may change—just be sure of the outcome you want.

Step 2: Take a small step toward it. Brown says this is vital, because mulling things over too long is overrated. Taking a tiny, inexpensive (in terms of time, money and other resources) step keeps you from over-investing.

Step 3: Learn from that step. It’s vital to pause and see what you learned from the action you took. Even if your small step doesn’t work, you’ll learn something. You may discover what not to do, or you may discover what you can do better. On the other hand, if your small step works, you’re ready for even more success!

Step 4: Repeat Steps 2 and 3. Movement creates momentum—and as long as you remain committed to realizing Step 1 (as opposed to a specific plan) and build upon what you learned from Step 2, you’ll eventually realize your outcome.

“When you don’t know what to do, action trumps everything,” says Brown. “Thinking is fine, but if you all do is think, at the end of the day all you are going to have is thoughts. You need to take action. And once you do, you are no longer stuck.”

As always, please feel free to pass these tips along to your team, colleagues and clients.

Sources: Inc. Magazine, Amazon

Economic Calendar for the Week of August 18 – August 22

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. August 18
10:00
Housing Market Index
Aug
NA
53
Moderate
Tue. August 19
08:30
Core Consumer Price Index (CPI)
Jul
NA
0.1%
HIGH
Tue. August 19
08:30
Consumer Price Index (CPI)
Jul
NA
0.4%
HIGH
Tue. August 19
08:30
Housing Starts
Jul
NA
893K
Moderate
Tue. August 19
08:30
Building Permits
Jul
NA
963K
Moderate
Wed. August 20
02:00
FOMC Minutes
7/30
NA
NA
HIGH
Thu. August 21
08:30
Jobless Claims (Initial)
8/16
NA
NA
Moderate
Thu. August 21
10:00
Existing Home Sales
Jul
NA
5.04M
Moderate
Thu. August 21
10:00
Philadelphia Fed Index
Aug
NA
23.9
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.

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

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