MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Only a few reports remain in the lead up to the Federal Open Market Committee meeting December 13-14.
  • ISM Services Index will be released on Monday.
  • On Tuesday, third quarter Productivity will be delivered.
  • As usual, weekly Initial Jobless Claims will be reported on Thursday.
  • Closing out the week, the Consumer Sentiment Index will be released on Friday.

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 gained some traction in recent days after significant losses the last few weeks.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday December 02 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…

Affordable Care Act Tax Scam Alert

The Internal Revenue Service has announced the latest scam to hit the country, which features a fake notice that the recipient owes money due to the Affordable Care Act. If you or someone you know receives a suspicious message you’re not sure is from the IRS, you’ll want to know these details:

Fake notices designed to look like actual IRS CP2000 notices (sent when information received about your income doesn’t match your tax return) will claim you owe money for the previous tax year under the Affordable Care Act.

Emailed notices are a red flag because the IRS doesn’t initiate communication by email. These emails may include a link to make an online payment. Fake payment processing websites can not only defraud you but also steal your identity or infect your computer.

Mailed notices may request that a check made payable to “I.R.S.” be sent. However, legitimate CP2000 notices request taxpayers only make checks payable to “United States Treasury.”

The IRS has defined procedures for communicating with taxpayers and will never:
  • Initiate contact by email, text or social media
  • Request payments via gift card, prepaid debit card or wire transfer
  • Threaten immediate arrest or deportation for failure to pay

If you or anyone you know receives a suspicious notice, a copy should be immediately sent to phishing@irs.gov and then deleted from your email account. The Federal Trade Commission should also be notified.

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

Source: FTC

Economic Calendar for the Week of December 05 – December 09

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. November 22
10:00
Existing Home Sales
Oct
NA
5.47M
Moderate
Wed. November 23
08:30
Durable Goods Orders
Oct
NA
-0.1%
Moderate
Wed. November 23
08:30
Jobless Claims (Initial)
11/19
NA
235K
Moderate
Wed. November 23
10:00
Consumer Sentiment Index (UoM)
Nov
NA
91.6
Moderate
Wed. November 23
10:00
New Home Sales
Oct
NA
593K
Moderate
Wed. November 23
02:00
FOMC Minutes
Nov 2
NA
NA
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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