MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

MMG Weekly / Vantage Production.blueForecast for the Week

Inflation and housing news will stand out in a packed economic calendar.
  • Look for wholesale inflation data via the Producer Price Index on Tuesday. The Consumer Price Index follows on Wednesday.
  • Manufacturing data from the Empire State Index will be delivered on Wednesday, with the Philadelphia Fed Index on Thursday.
  • Retail Sales will be released Wednesday.
  • Housing news is abundant with the NAHB Housing Market Index on Wednesday, and Housing Starts and Building Permits on Thursday.
  • As usual, weekly Initial Jobless Claims will be reported on Thursday.
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 rallied for several days before getting knocked down again. Home loan rates are still in attractive territory.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday, February 10 2017)

Japanese Candlestick Chart

The Mortgage Market Guide View…

How Successful People Read More Books

A single good idea from just one book can quickly transform your business or personal life. So why don’t more of us read more? The explanations are as unique as the people making them. You can get more reading done and make fewer excuses armed with these five tips:

Carve out time. According to a 2015 study by the Bureau of Labor Statistics, Americans ages 15 and older average just over 19 hours per week watching television and only about 2.3 hours per week reading. Whether you currently carve out a time to read or not, reallocating some hours is a possibility.

Set goals. Start small with reading goals, like five pages a day. You can work your way up to a chapter a day or a book a week.

Remove distractions. Eliminate obstacles to reading from your environment. Not reading in the TV room or within ear shot of programming and muting your phone will help you concentrate.

Keep things fresh. Having a variety of books to choose from (e.g. biographies and business, how-to or inspirational books) will help you maintain enthusiasm to meet your daily reading goals.

Grow with audio. Listening to books can dramatically increase time spent with books. Download audio books to your smartphone and listen on your commute, as you exercise, while you clean, or as you wait in line or for an appointment.

Reading more can help you attain your goals, expand your horizons and provide you with a constant stream of inventive ideas. Use these tips to begin reading more today.

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

Sources: Inc., Lifehack, Better Humans

Economic Calendar for the Week of February 13 – February 17

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. February 14
08:30
Producer Price Index (PPI)
Jan
NA
0.3%
Moderate
Tue. February 14
08:30
Core Producer Price Index (PPI)
Jan
NA
0.2%
Moderate
Wed. February 15
08:30
Retail Sales ex-auto
Jan
NA
0.2%
HIGH
Wed. February 15
08:30
Retail Sales
Jan
NA
0.6%
HIGH
Wed. February 15
08:30
Empire State Index
Feb
NA
6.5
Moderate
Wed. February 15
08:30
Core Consumer Price Index (CPI)
Jan
NA
0.2%
HIGH
Wed. February 15
08:30
Consumer Price Index (CPI)
Jan
NA
0.3%
HIGH
Wed. February 15
10:00
Housing Market Index
Feb
NA
67
Moderate
Thu. February 16
08:30
Housing Starts
Jan
NA
1226K
Moderate
Thu. February 16
08:30
Building Permits
Jan
NA
1210K
Moderate
Thu. February 16
08:30
Jobless Claims (Initial)
2/11
NA
NA
Moderate
Thu. February 16
08:30
Philadelphia Fed Index
Feb
NA
23.6
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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