MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

The Retail Sales report for July will show if consumers continued the spending spree after sales surged in June.
  • The light economic calendar begins on Tuesday with the release of second quarter Productivity.
  • As usual, weekly Initial Jobless Claims will be released on Thursday.
  • Friday brings Retail Sales, the Producer Price Index and the Consumer Sentiment Index.
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 dipped slightly recently but regained their position near key levels, keeping home loan rates in historically-low territory.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday August 5, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

How to Overcome Hotel Cancellation Fees
Cancellation fees are on the rise, but we tell you how to get around them.
By Kaitlin Pitsker, Kiplinger.com

The days when most hotels would allow you to cancel a reservation without penalty until 6 p.m. on the day of your scheduled arrival are fading fast. To contend with a growing number of guests who cancel their stays, hotel companies are making it more difficult and costly to back out of a reservation. Most have stiffened their policies to require 24 to 48 hours’ notice and typically charge a flat cancellation fee; resorts or hotels that receive few walk-in guests often require even longer notice and charge a steeper fee or the cost of a one-night or two-night stay. Some hotels offer better rates to travelers who lock in a reservation with a nonrefundable booking.

Expect more changes as hotels test different policies. Tiered systems, allowing free cancellation a week or more in advance but charging steeper fees as the date of your arrival approaches, may become common, says Bjorn Hanson, a professor at New York University’s Tisch Center for Hospitality and Tourism. Be sure to read the fine print. The rules can differ among hotels in the same chain or even at the same hotel from one month to the next.

Even the best-laid travel plans can hit a last-minute snag. If you’re faced with a pricey cancellation fee, consider posting your reservation for sale on a site such as Roomer Travel or Cancelon. You’ll set your own price, but don’t expect to recoup the total cost. Roomer suggests listing rooms for at least 20% below what you originally paid, and the site will take a 15% cut of your sale price. Cancelon suggests selling at about half the room’s original price and keeps 10% of the selling price. Roomer takes care of transferring the reservations from your name to the buyer’s, but Cancelon requires you to make the switch.

If you’d rather play it by ear than worry about cancellation fees, look for last-minute deals with mobile app HotelTonight. Or browse Roomer Travel or Cancelon and let someone else off the hook.

Reprinted with permission. All Contents © 2016 The Kiplinger Washington Editors. Kiplinger.com.

Economic Calendar for the Week of August 08 –  August 12

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. August 09
08:30
Productivity
Q2
NA
-0.6%
Moderate
Thu. August 11
08:30
Jobless Claims (Initial)
8/06
NA
269K
Moderate
Fri. August 12
08:30
Core Producer Price Index (PPI)
Jul
NA
0.4%
Moderate
Fri. August 12
08:30
Producer Price Index (PPI)
Jul
NA
0.5%
Moderate
Fri. August 12
08:30
Retail Sales
Jul
NA
0.6%
HIGH
Fri. August 12
08:30
Retail Sales ex-auto
Jul
NA
0.7%
HIGH
Fri. August 12
10:00
Consumer Sentiment Index (UoM)
Aug
NA
90.0
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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