MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Friday’s Jobs Report for February could be a major market mover. Plus, there’s important news on inflation, personal income and spending, and manufacturing.

  • Right out of the gate on Monday, look for Personal Income, Personal Spending and Personal Consumption Expenditures (the Fed’s favorite measure of inflation).
  • Also on Monday, there will be manufacturing news via the ISM Index. The ISM Services Index follows on Wednesday.
  • Wednesday also brings the ADP Employment Report, the prelude to the government’s Jobs Report.
  • On Thursday, Weekly Initial Jobless Claims will be released, as usual. Also look for Productivity for the fourth quarter of 2014.
  • Friday is the big day with the February Jobs Report, which includes Non-farm Payrolls, Hourly Earnings and the Unemployment Rate.

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, Mortgage Bonds fell in February as Stocks performed well. Home loan rates edged higher but remain near historic best levels.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday February 27, 2015)

Japanese Candlestick Chart

The Mortgage Market Guide View…

4 Ways to Boost Creative Thinking

To busy business people, creativity often sounds like a lofty and distant thing reserved for artists and musicians. But creative thinking is the antidote to many business problems—look no further than Apple computers for evidence! Here are four suggestions to help get those creative juices flowing:

1. Promote new ideas. Give yourself and your team permission to come up with ideas that could challenge how you “do things”. This can help you break through outdated paradigms, as well as reaffirm you’re doing some things right!

2. Cross-pollinate ideas. Visit a colleague’s business and find out how they work, or start a mastermind group to get fresh ideas.

3. Get help. Coaches and trainers can offer training and insights for boosting creative power for both individual and group settings. Workshops and consulting sessions can be motivating, morale boosting and give you tools for transformation.

4. Track and measure. When you or your team come up with a creative solution for a new business process, sales boost, or any other advancement, make sure to track its progress over time so that you will understand what works, what doesn’t work and why.

Please feel free to pass these creative tips along to your team, clients and colleagues!

Source: American Express Open Forum

Economic Calendar for the Week of March 2 – March 6

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. March 02
08:30
Personal Income
Jan
NA
0.3%
Moderate
Mon. March 02
08:30
Personal Spending
Jan
NA
-0.3%
Moderate
Mon. March 02
08:30
Personal Consumption Expenditures and Core PCE
Jan
NA
0.0%
HIGH
Mon. March 02
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.3%
HIGH
Mon. March 02
10:00
ISM Index
Feb
NA
53.5
HIGH
Wed. March 04
02:00
Beige Book
Mar
NA
NA
Moderate
Wed. March 04
10:00
ISM Services Index
Feb
NA
56.7
Moderate
Wed. March 04
08:15
ADP National Employment Report
Feb
NA
213K
HIGH
Thu. March 05
08:30
Jobless Claims (Initial)
2/28
NA
313K
Moderate
Thu. March 05
08:00
Productivity
Q4
NA
-1.8%
Moderate
Fri. March 06
08:30
Average Work Week
Feb
NA
34.6
HIGH
Fri. March 06
08:30
Non-farm Payrolls
Feb
NA
257K
HIGH
Fri. March 06
08:30
Hourly Earnings
Feb
NA
0.5%
HIGH
Fri. March 06
08:30
Unemployment Rate
Feb
NA
5.7%
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. 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.

Equal Housing Lender

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