MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

As May enters its last full week, more housing news, Gross Domestic Product and consumer sentiment will be offered up for the Fed to analyze prior to June’s Federal Open Market Committee (FOMC) meeting.
  • Housing data for the week includes New Home Sales on Tuesday and Pending Home Sales Thursday.
  • Thursday also brings Durable Goods Orders and weekly Initial Jobless Claims.
  • Friday wraps up with the Consumer Sentiment Index and the second estimate for first quarter Gross Domestic Product.
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, Mortgage Bonds declined in recent days following the release of the April FOMC minutes.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday May 20, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

How to Recover from a Bad First Impression

You never get a second chance to make a first impression. But if you’ve flubbed with a new coworker or potential vendor or client, fear not. You have the chance to make an even better second impression. Here are some tips that can help you recover and build a business relationship:

Understand first impressions. People often won’t realize if there’s an explanation for your initial impression. Perhaps you just got a parking ticket, your child woke up with strep throat or a technology outage at work disrupted everything. Things happen to everyone.

Circle back and explain yourself. Most people want to be fair and will give you a second chance, especially if you give them a good reason. A well-timed call or email to explain why you were having “one of those days” can break the ice, showing you’re human as well as humble. Everybody has off days, and admitting it will usually be seen as a strength as long as off days don’t become frequent and laden with excuses.

Play a role in their success. Clearly demonstrate how you can enhance their work or world. Seek out assignments and opportunities that put you directly in their path, and where you’ll be able to show your value. You could also share a great idea that’s benefitted you.

Up your performance and sustain it. If you’ve been pigeonholed for a certain behavior, outperform that perceived behavior and make it the norm.

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

Sources: Business Insider, Harvard Business Review

Economic Calendar for the Week of May 23 – May 27

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. May 24
10:00
New Home Sales
Apr
NA
511K
Moderate
Thu. May 26
08:30
Jobless Claims (Initial)
5/21
NA
278K
Moderate
Thu. May 26
08:30
Durable Goods Orders
Apr
NA
0.8%
Moderate
Thu. May 26
10:00
Pending Home Sales
Apr
NA
1.4%
Moderate
Fri. May 27
08:30
Gross Domestic Product (GDP)
Q1
NA
0.5%
HIGH
Fri. May 27
08:30
GDP Chain Deflator
Q1
NA
0.7%
HIGH
Fri. May 27
10:00
Consumer Sentiment Index (UoM)
May
NA
95.8
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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