MMG WEEKLY – WHAT ARE THEY SAYING THIS WE

MMG Weekly / Vantage Production.blueForecast for the Week

The two-day Federal Open Market Committee (FOMC) meeting coupled with a packed economic calendar stirs up a recipe for volatility.
  • Tuesday kicks off a slew of economic data, including Retail Sales.
  • Also on Tuesday, look for the Empire State Index, the first of two key manufacturing reports. The Philadelphia Fed Index follows on Thursday.
  • Inflation news will be important to monitor, as there have been hints of inflation heating up in recent reports. On Tuesday the wholesale-measuring Producer Price Index will be released, while the Consumer Price Index releases Wednesday.
  • On the housing front, look for the National Association of Home Builders Housing Market Index on Tuesday, followed by Housing Starts and Building Permits on Wednesday.
  • Wednesday also brings the FOMC Monetary Policy Statement, which could be a market mover.
  • Weekly Initial Jobless Claims will be released on Thursday, as usual.
  • Finally, the Consumer Sentiment Index will cap off the week on Friday.
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, Bonds took a hit in recent days, due in part to news out of the Eurozone. Despite this, home loan rates remain attractive.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday March 11, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

5 Tips to Seal a Deal

While you can present all the features and benefits you’ve got to clients, if you don’t ask to seal the deal, chances are high you won’t. At least that’s the word from Mike Michalowicz, author and former small business columnist for The Wall Street Journal.

Here are five steps to help close more business by asking:

STEP 1. Ask for commitment. Then stop talking. When you reach an appropriate point in your presentation, ask for the commitment and stop talking. If you get a yes, congratulations! You’ve got a deal. If you get an objection, congratulations! That shows they are interested enough to express a concern. Move to Step 2.

STEP 2. Address the objection. Thoroughly address the objection. But remember, many people’s first objection is not the actual reason for their hesitation. To verify this, and any further objections, go to Step 3.

STEP 3. Ask clarifying questions and listen to responses. The rule of thumb is to listen twice as much as you talk. Surprisingly, the simplest route to finding out what people really want or need is to ask them, directly. When you have enough information, move to Step 4.

STEP 4. Offer three comparisons. If it fits your business model, offer prospects three suitable options. This gives people the feeling of choice and control, which empowers them to make the best decision for their needs.

STEP 5. Don’t guilt trip people. Memorize this phrase: “Please don’t feel any obligation.” This reduces any pressure prospects may feel, and at the same time, requires them to think about what being obligated would mean to them. Oddly enough, both reactions increase your chances for a deal!

Putting these tips into action will help you seal deals without pressuring you or the prospect. These tips can also help you provide more intelligent solutions for customers … and close more business.

Please feel free to pass these helpful tips along to your team, clients and colleagues.

Source: American Express OPEN Forum

Economic Calendar for the Week of March 14 – March 18

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. March 15
08:30
Retail Sales
Feb
NA
0.2%
HIGH
Tue. March 15
08:30
Retail Sales ex-auto
Feb
NA
0.1%
HIGH
Tue. March 15
08:30
Producer Price Index (PPI)
Feb
NA
0.1%
Moderate
Tue. March 15
08:30
Core Producer Price Index (PPI)
Feb
NA
0.1%
Moderate
Tue. March 15
08:30
Empire State Index
Mar
NA
-16.6
Moderate
Tue. March 15
10:00
Housing Market Index
Mar
NA
58
Moderate
Wed. March 16
08:30
Building Permits
Feb
NA
1202K
Moderate
Wed. March 16
08:30
Housing Starts
Feb
NA
1099K
Moderate
Wed. March 16
08:30
Core Consumer Price Index (CPI)
Feb
NA
0.3%
HIGH
Wed. March 16
08:30
Consumer Price Index (CPI)
Feb
NA
0.0%
HIGH
Wed. March 16
02:00
FOMC Meeting
Mar
NA
0.375%
HIGH
Thu. March 17
08:30
Philadelphia Fed Index
Mar
NA
-2.8
HIGH
Thu. March 17
08:30
Jobless Claims (Initial)
3/12
NA
259K
Moderate
Fri. March 18
10:00
Consumer Sentiment Index (UoM)
Mar
NA
91.7
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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