MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

When the Federal Open Market Committee meets April 26-27, members will have key reports to consider from a wide range of sectors across the economy.
  • Housing data is plentiful, beginning with New Home Sales on Monday, the S&P/Case-Shiller Home Price Index on Tuesday and Pending Home Sales on Wednesday.
  • On the manufacturing side, Durable Goods Orders will be released Tuesday and Chicago PMI on Friday.
  • Look for Consumer Confidence on Tuesday and the Consumer Sentiment Index on Friday.
  • Weekly Initial Jobless Claims and the first reading on Gross Domestic Product for the first quarter of 2016 are scheduled for release on Thursday.
  • The week wraps up on Friday with Personal Income, Personal Spending, the Employment Cost Index and the inflation-measuring Personal Consumption Expenditures.

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, while MBS have declined recently home loan rates still remain near historic lows.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday April 22, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Track Mileage With a Little Help From Your Phone

If you need to track mileage for tax purposes, you know that separating work-related miles can sometimes be problematic (remembering to write them down, for one!). With the advent of rideshare companies like Uber and Lyft, technology has made mileage and auto expense tracking easier than ever. Here are a few apps to help:

MileIQ uses swipes to help you instantly categorize your drive time. Swipe left for personal miles, right for professional miles. The free version allows you to track 40 trips per month. Secure, cloud-based data storage allows you to share information easily with your accountant or employer. iOS, Android.

TripLog has an auto-start feature that begins tracking as soon as your vehicle reaches 5 miles per hour, and has an automatic daily cloud backup of your data. Paid features include real-time vehicle location monitoring, workforce management and statistical data so you can get more miles from your tank. iOS, Android.

MyLog records all your trips by GPS, and it even works offline in case you lose signal when driving in remote locations. Print, send or share easily editable reports via email, Bluetooth or Google Drive. Android only.

Since the IRS lowered standard mileage rates for 2016, it makes sense to track and claim as many miles as possible!

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

Economic Calendar for the Week of April 25 – April 29

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. April 25
10:00
New Home Sales
Mar
NA
512K
Moderate
Tue. April 26
08:30
Durable Goods Orders
Mar
NA
-2.8%
Moderate
Tue. April 26
09:00
S&P/Case-Shiller Home Price Index
Feb
NA
5.7%
Moderate
Tue. April 26
10:00
Consumer Confidence
Apr
NA
96.2
Moderate
Wed. April 27
10:00
Pending Home Sales
Mar
NA
3.5%
Moderate
Wed. April 27
02:00
FOMC Meeting
Apr
NA
NA
HIGH
Thu. April 28
08:30
Jobless Claims (Initial)
4/23
NA
NA
Moderate
Thu. April 28
08:30
GDP Chain Deflator
Q1
NA
0.9%
Moderate
Thu. April 28
08:30
Gross Domestic Product (GDP)
Q1
NA
1.4%
Moderate
Fri. April 29
08:30
Employment Cost Index (ECI)
Q1
NA
0.6%
HIGH
Fri. April 29
08:30
Personal Spending
Mar
NA
0.1%
Moderate
Fri. April 29
08:30
Personal Income
Mar
NA
0.2%
Moderate
Fri. April 29
08:30
Personal Consumption Expenditures and Core PCE
Mar
NA
0.1%
HIGH
Fri. April 29
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.7%
HIGH
Fri. April 29
09:45
Chicago PMI
Apr
NA
53.6
HIGH
Fri. April 29
10:00
Consumer Sentiment Index (UoM)
Apr
NA
89.7
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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