MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

The highly anticipated April Jobs Report caps the week on Friday, but manufacturing data will be top of mind too.
  • Manufacturing data via the ISM Index will be released Monday. Look for the ISM Services Index on Wednesday.
  • Also on Wednesday, Productivity for the first quarter and the ADP National Employment Report will be released.
  • Thursday brings weekly Initial Jobless Claims.
  • The big news comes Friday with the April Jobs Report that includes Average Work Week, Hourly Earnings, Non-farm Payrolls 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. 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, despite some recent volatility, Mortgage Bonds remain near historic best levels.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday April 29, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Save Big on Shipping for Your Business

Small businesses and busy professionals often have items to ship, like documents and packages for clients or vendors. If you’re not careful, all that shipping can cost you, especially if you’’re still paying retail prices. You may be able to benefit from opening a small business account with one of these major shippers:

The USPS doesn’t offer direct discounts to small businesses (aside from bulk mailing). However, Commercial Base Pricing is available for First Class Package Service, Priority Mail, Priority Mail Express and more when you sign up with an online postage service provider such as Stamps.com (for a monthly fee). Not only will you be able to order and print postage online, you can save between 5 and 51 percent on postage costs.

With a small business account from UPS you can print labels, get free shipping materials, pay for shipping on a weekly basis, and receive a daily scheduled pickup. Discounts range from 9 percent on ground shipping up to 18 percent for overnight air and international services.

FedEx offers small businesses a suite of options ranging from free shipping materials to monthly billing and discounts between 8 to 60 percent, depending on the service. You can schedule daily pickups, or for less frequent shipping, order a pickup on-demand via the 800 number or online. FedEx also offers a rewards program that lets you choose gifts using points earned with each shipment.

Shipping needs can vary depending on pricing for routes as well as packaging requirements between carriers. Explore these options to maximize your savings.

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

Sources: Stamps.com, UPS, FedEx

Economic Calendar for the Week of May 2 – May 6

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. May 02
10:00
ISM Index
Apr
NA
51.8
HIGH
Wed. May 04
08:15
ADP National Employment Report
Apr
NA
200K
HIGH
Wed. May 04
08:30
Productivity
Q1
NA
-2.2%
Moderate
Wed. May 04
10:00
ISM Services Index
Apr
NA
54.5
Moderate
Thu. May 05
08:30
Jobless Claims (Initial)
4/30
NA
NA
Moderate
Fri. May 06
08:30
Non-farm Payrolls
Apr
NA
215K
HIGH
Fri. May 06
08:30
Unemployment Rate
Apr
NA
5.0%
HIGH
Fri. May 06
08:30
Average Work Week
Apr
NA
34.4
HIGH
Fri. May 06
08:30
Hourly Earnings
Apr
NA
0.3%
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.

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