MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Everyone will be watching to see if the July Jobs Report matches May’s dismal data or jives with June’s more promising numbers.
  • National manufacturing data via the ISM Index will be released on Monday followed by the ISM Services Index on Wednesday.
  • Personal Income, Personal Spending and the inflation reading Personal Consumption Expenditures are due to be delivered on Tuesday.
  • Key employment reports begin on Wednesday with the ADP National Employment Report.
  • As usual, weekly Initial Jobless Claims will be released on Thursday.
  • Look for the July Jobs Report on Friday, which includes Non-farm Payrolls, Hourly Earnings 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, Mortgage Bonds experienced an uptick recently following lackluster earnings reports and lower-than-expected GDP, keeping home loan rates in historic territory.

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

Japanese Candlestick Chart

The Mortgage Market Guide View…

6 Simple Ways to Cut Office Expenses

While recurring office expenses may seem a standard part of doing business, here are six easy ideas for trimming those costs:

Turn off power strips and unplug items not in use. Computers and electronics consume power even when they aren’t in use (even those cell phone charger cords). Make power strips accessible, so they can easily be turned off overnight and only plug in other devices as needed.

Swap your lights for inexpensive LED bulbs. Even fluorescent tubes can now be affordably replaced (just make sure to recycle the tubes correctly).

Ditch your printer. An inexpensive scanner can digitize paper, receipts and all other documents. You can even create PDFs that can be digitally and legally signed. This action can save energy, paper, ink and storage expenses.

Outsource errands to couriers. Spend your limited time on income-generating activities, not trips to the post office, supply store, bank or dry cleaner. Hire a courier to do it for a fraction of the cost of your valuable time.

Trade your landline phone for Internet calling. Programs like Skype allow you to make and take phone calls through the Internet but also provide you with a real phone number and voicemail tools. Or, if you’re out of the office frequently, cancel your landline and use your cell phone as your main business number.

Review your insurance. You may be paying for riders, endorsements or other add-ons that are obsolete. Discuss potential cost savings with your agent.

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

Sources: OPEN Forum, When I Work

Economic Calendar for the Week of August 1 – August 5

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. August 01
10:00
ISM Index
Jul
NA
53.2
HIGH
Tue. August 02
08:30
Personal Income
Jun
NA
0.2%
Moderate
Tue. August 02
08:30
Personal Spending
Jun
NA
0.4%
Moderate
Tue. August 02
08:30
Personal Consumption Expenditures and Core PCE
Jun
NA
0.2%
HIGH
Tue. August 02
08:30
Personal Consumption Expenditures and Core PCE
Jun
NA
1.6%
HIGH
Wed. August 03
08:15
ADP National Employment Report
Jul
NA
172K
HIGH
Wed. August 03
10:00
ISM Services Index
Jul
NA
56.5
Moderate
Thu. August 04
08:30
Jobless Claims (Initial)
7/30
NA
NA
Moderate
Fri. August 05
08:30
Non-farm Payrolls
Jul
NA
287K
HIGH
Fri. August 05
08:30
Unemployment Rate
Jul
NA
4.9%
HIGH
Fri. August 05
08:30
Hourly Earnings
Jul
NA
0.1%
HIGH
Fri. August 05
08:30
Average Work Week
Jul
NA
34.4
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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