MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Capital markets are closed Monday in observance of Martin Luther King Jr. Day. The holiday-shortened week is long on housing data as the sector tries to continue its winning ways from 2015.
  • In housing news, Tuesday brings the NAHB Housing Market Index, followed by Housing Starts and Building Permits on Wednesday, and Existing Home Sales on Friday.
  • On the inflation front, the Consumer Price Index will be released on Wednesday.
  • Weekly Initial Jobless Claims and manufacturing data from the Philadelphia Fed Index will be delivered on Thursday.
Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve. In contrast, 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. When Bond prices 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 are 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, volatility in the Stock markets has improved Bond prices recently.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday January 15, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

5 Money-Smart Ways to Use Your Phone When Traveling Overseas

If you’re traveling overseas, you have many new options for keeping in touch without spending a bundle.

Whether you’re hopping over the pond for a weekend or hiking through Southeast Asia for a month, choose wisely before you leave to avoid coming home to a gigantic phone bill.

Add an international plan to your phone. It may not be the cheapest way to go, but it’s the simplest, and some U.S. carriers are making their international deals more appealing. T-Mobile’s bundle of free texting, free data and 20-cents-per-minute calls is now available in 145 countries. Sprint introduced similar bundles you can add to existing plans. And Verizon recently debuted TravelPass, which lets you transfer your domestic plan’s talk, text and data allowances to more than 65 countries for a small daily fee ($2 for Canada and Mexico, $10 for all others). Be sure to confirm with your carrier that you will have coverage in your destination and that your phone will work abroad. Handset compatibility is more likely to be a problem with some older Sprint and Verizon devices that are “CDMA only,” a technology not widely used around the world. If your carrier doesn’t offer a favorable deal for your destination, don’t rely on pay-as-you-go service unless you plan to use your phone sparingly; you’ll shell out a couple of dollars or more per minute. And turn off data roaming altogether. Cruise passengers can check with their carrier for special packages or simply pay roaming fees if they must use their phones.

Load a free app. Free communication apps, such as Skype, WhatsApp, Viber and Facebook’s Messenger, generally let you call, text and send photos and videos to other app users at no cost. Some even let you call mobile numbers or landlines for a few cents a minute — and in the case of Google’s Hangouts Dialer, most calls to the U.S. and Canada are free. The catch? You need to be connected to Wi-Fi. “I travel all the time and have no issues,” says Logan Abbott, president of WireFly.com, a Web site that compares phone plans. If you go this route, set your phone on airplane mode to avoid accidentally racking up cellular charges, then turn on your Wi-Fi connection.

Go native. You may want the security of knowing you can call, text or look up directions on your phone at all times. If you’re visiting a single country, you own an unlocked phone and you plan to make mostly local calls, popping out your SIM card and substituting a local SIM card upon arrival can be economical. Prices vary widely, but Dave Dean, founder of TooManyAdapters.com, a travel technology Web site, says you’ll generally pay between $10 and $50 to get a month’s allotment of calls, texts and data. (Some countries make the setup process cumbersome, so check before you leave home.)

Hook up a mobile hot spot. If your phone is locked or you want to keep your U.S. phone number for calls and texts but avoid data roaming charges, you can buy or rent a mobile hot spot or “MiFi” device, a pocket-size gadget that creates a personal wireless connection. XCom Global, for example, charges $14.95 per day to connect up to 10 devices.

And for frequent fliers . . . A free Google Voice phone number rings all of your devices at once, transcribes voice mails, tracks missed calls, lets you dial international numbers cheaply and more.

By Miriam Cross, Kiplinger.com

Reprinted with permission. All Contents ©2016 The Kiplinger Washington Editors. Kiplinger.com.

Economic Calendar for the Week of January 18 – January 22

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. January 19
01:00
Housing Market Index
Jan
NA
61
Moderate
Wed. January 20
01:00
Core Consumer Price Index (CPI)
Dec
NA
0.2%
HIGH
Wed. January 20
01:00
Consumer Price Index (CPI)
Dec
NA
0.0%
HIGH
Wed. January 20
01:00
Housing Starts
Dec
NA
1173K
Moderate
Wed. January 20
01:00
Building Permits
Dec
NA
1289K
Moderate
Thu. January 21
08:30
Jobless Claims (Initial)
1/21
NA
284K
Moderate
Thu. January 21
10:00
Philadelphia Fed Index
Jan
NA
-5.9
Moderate
Fri. January 22
10:00
Existing Home Sales
Dec
NA
4.76M
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. 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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