MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Leading up to the September Federal Open Market Committee meeting, Fed members will be zeroing in on this packed economic week.
  • Thursday is chock full of reports including weekly Initial Jobless Claims, Retail Sales and the Producer Price Index, which measures wholesale inflation.
  • Also on Thursday, look for regional manufacturing data from the Philadelphia Fed Index and Empire State Index.
  • Friday brings the Consumer Price Index and 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 are still hovering near multi-year highs. Home loan rates remain in historically low territory.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday September 09, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Don’t Become a Data Hostage
Keeping data secure is growing in importance for small business owners. Each day over 4,000 businesses have their data hijacked and held hostage. Hackers can literally hold data for ransom until you pay, sometimes thousands of dollars. Know the basics to prevent you and your company from falling victim:

1. Follow the A-B-Ds. Always back up data. Small businesses should have a systematic process in place to regularly back up data via encrypted, cloud-based data storage and recovery solutions. The ability to access back-up data will provide incredible peace of mind knowing you will never have to pay a ransom to restore data.

2. Don’t fall for a fake. Understand how to spot a fake email, even if it looks like it comes from someone you know. Warning signs include mismatched URLs, spelling and grammar errors or requests for personal information.

3. Break the connection. If you suspect your computer is experiencing any level of breach, make sure you know how to disconnect your computer from the network, either virtually or the physical Ethernet cable. Viruses spread easily and quickly through networks, so disconnecting can prevent further damage.

For most businesses, data is one key asset worth taking a few extra steps to protect. Understanding how to protect your data will help you avoid security threats and modern cyber crime.

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

Sources: Smart Hustle, TechRepublic

Economic Calendar for the Week of September 12 – September 16

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Thu. September 15
08:30
Jobless Claims (Initial)
9/10
NA
259K
Moderate
Thu. September 15
08:30
Empire State Index
Sep
NA
-4.2
Moderate
Thu. September 15
08:30
Philadelphia Fed Index
Sep
NA
2.0
HIGH
Thu. September 15
08:30
Core Producer Price Index (PPI)
Aug
NA
-0.3%
Moderate
Thu. September 15
08:30
Producer Price Index (PPI)
Aug
NA
-0.4%
Moderate
Thu. September 15
08:30
Retail Sales ex-auto
Aug
NA
-0.3%
HIGH
Thu. September 15
08:30
Retail Sales
Aug
NA
0.0%
HIGH
Fri. September 16
08:30
Consumer Price Index (CPI)
Aug
NA
0.0%
HIGH
Fri. September 16
08:30
Core Consumer Price Index (CPI)
Aug
NA
0.1%
HIGH
Fri. September 16
10:00
Consumer Sentiment Index (UoM)
Sep
NA
89.8
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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