May

1

  In This Issue  
     
  Last Week in Review:The Fed met, but was there mention of more Bond buying?Forecast for the Week: A full slate of economic reports is ahead, with news on inflation, manufacturing, and the job market.  View: Cinco de Mayo is right around the corner. Use these great conversation pieces when talking with clients.    
     
  Last Week in Review  
     
  “I’m still standing – yeah, yeah, yeah.” Elton John.And after last week’s Fed meeting, Bonds and home loan rates are still standing near record best levels. Read on for details. After last week’s regularly scheduled meeting of the Federal Open Market Committee (FOMC), Fed Chairman Ben Bernanke acknowledged that conditions in our economy are improving modestly, but he noted that the housing market remains depressed. One example of this is New Home Sales, which fell 7.1% in March to 328K units on an annual rate.Bernanke also noted that inflation is higher in the short-run due to higher energy costs, but that the Fed expects prices to moderate and remain in check longer-term. Remember, inflation hurts the value of fixed investments like Bonds (including Mortgage Bonds, to which home loan rates are tied)…so inflation staying in check is crucial when it comes to home loan rates remaining near record best levels.  One important subject the Fed didn’t mention in their Policy Statement was another round of Bond buying to stimulate our economy (known as Quantitative Easing or QE3). This wasn’t much of a surprise because — after several moves to prop up the economy — the Fed must see where upcoming economic reports go before venturing to underwrite the economy further. If the housing market remains depressed and the economy doesn’t pick up steam, QE3 could be a very real possibility.

 

And there was a bit of a sluggish read on our economy last Friday, after the Fed’s mid-week meeting. The advanced (first of three readings) of Gross Domestic Product (GDP) for the 1st Quarter of 2012 came in at 2.2%, well below expectations. This was also well below the 3% final 4th Quarter 2011 GDP reading. Within the report it showed that the personal consumption expenditure inflation reading rose at the fastest pace since the 2nd Quarter of 2011. This is definitely something the Fed is watching closely.

 

As 2012 continues to unfold, inflation, the housing market, our sluggish economy, and our ever-growing debt are important issues that the Fed and our government need to address. Seeing the debt crisis in Europe escalate must put a sense of urgency on our government to reign in our annual budget deficit and overall debt. This mix of factors will continue to impact the direction in which Bonds and home loan rates move in the weeks ahead.

 

The good news is that now continues to be a great time to purchase or refinance a home, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.

 

 

 

 
     
  Forecast for the Week  
     
  A slew of economic reports are set for release this week, and investors and traders will be watching the data closely for any signs of an economic slowdown:

  • Right off the bat on Monday the Personal Income and Spending data will be released along with the closely watched Core Personal Consumption Expenditure (PCE) report. The Core PCE is the Fed’s favorite gauge of inflation and comes after Fed Chairman Ben Bernanke said last week that inflation in the short-term has been pressured higher by rising energy costs.
  • In the manufacturing sector, the Chicago PMI will be released on Monday with the national ISM Indexdelivered on Tuesday.
  • On Wednesday, the ADP Employment Report will be released ahead of the government’s monthly Non-farm Payrolls and the Unemployment Rateon Friday.
  • Initial Weekly Jobless Claims will be released on Thursday. The recent couple weeks of elevated Jobless Claims is disturbing…and if it continues, rest assured QE3 chatter will re-emerge.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

 

When you see these Bond prices moving higher, it means home loan rates are improving — and when they 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 were 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, Bonds and home loan rates continue to hover near record best levels. I’ll stay on top of this week’s news to monitor how Bonds and home loan rates are impacted.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Apr 27, 2012)

 

Japanese Candlestick Chart

 

 
     
  The Mortgage Market Guide View…  
     
      Cinco de Mayo: The Story You May Not KnowIn a few days, we’ll mark the celebration known as Cinco de Mayo. Although many people have heard of this celebration, most people don’t realize that the event being commemorated may have actually played an important role in shaping the United States that we know today.  Feel free to share the interesting facts below with clients and friends in the coming days! You may surprise them with what you’re about to read.  

What Does Cinco de Mayo Commemorate?

 

Many people believe that Cinco de Mayo is the day that recognizes Mexico’s independence from Spain. To set the record straight, that conquest happened on September 15th, 1810. Cinco de Mayo, on the other hand, celebrates an event that took place over 50 years later.

 

On May 5, 1862, the Mexican cavalry, under the command of Texas-born General Zaragosa, defeated the French at the battle at Puebla, a city 100 miles east of Mexico City.

 

The French army, having not suffered a defeat in nearly 50 years, landed in the port of Vera Cruz and headed toward the capital city with a specific mission. Fearless of any opponent, the French sought to overthrow the capitol and gain control of Mexico, even bringing along a Hapsburg prince to oversee the would-be empire.

 

Cinco de Mayo’s Connection to the United States

 

The goal of France’s leader, Emperor Napoleon III, was to gain proximity to the US in hopes of supplying the Confederate Army in their fight against the North. He had a vested interest in sustaining the division within America.

 

To America’s benefit, the undersized Mexican cavalry used their knowledge of the terrain to defeat the powerful French army. This victory enabled the northern states to build the greatest army in the world at that time.

 

Fourteen months later, the North soundly defeated the Confederate Army in the battle at Gettysburg, thus ending the civil war. Union troops were subsequently rushed to the Texas/Mexican border to help expel the French from Mexico.

 

For this reason, Cinco de Mayo is celebrated in both countries. More importantly, it’s a great occasion to honor freedom and liberty.

 

Economic Calendar for the Week of April 30 – May 04

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. April 30
08:30
Personal Income
Mar
NA
 
0.2%
Moderate
Mon. April 30
08:30
Personal Spending
Mar
NA
 
0.8%
Moderate
Mon. April 30
08:30
Personal Consumption Expenditures and Core PCE
Mar
NA
 
0.1%
HIGH
Mon. April 30
08:30
Personal Consumption Expenditures and Core PCE
Mar
NA
 
1.9%
HIGH
Mon. April 30
09:45
Chicago PMI
Apr
NA
 
62.2
HIGH
Tue. May 01
10:00
ISM Index
Apr
NA
 
53.4
HIGH
Wed. May 02
08:15
ADP National Employment Report
Apr
NA
 
209K
HIGH
Thu. May 03
08:30
Productivity
Q1
NA
 
0.9%
Moderate
Thu. May 03
08:30
Jobless Claims (Initial)
4/28
NA
 
388K
Moderate
Fri. May 04
08:30
Non-farm Payrolls
Apr
NA
 
120K
HIGH
Fri. May 04
08:30
Unemployment Rate
Apr
NA
 
8.2%
HIGH
Fri. May 04
08:30
Hourly Earnings
Apr
NA
 
0.2%
HIGH
Fri. May 04
08:30
Average Work Week
Apr
NA
 
34.5
HIGH
Fri. May 04
10:00
ISM Services Index
Apr
NA
 
56.0
Moderate

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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

 

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase,

Apr

25

  Last Week in Review:There was a mix of good, bad, and downright ugly news. Find out how home loan rates responded.Forecast for the Week: The Fed meets, plus there’s news on consumer confidence, housing, the state of the economy, and more.  

View: There’s some new data on housing from the Census Bureau. Check out the details below.

 

 
     

 

  Last Week in Review  

 

     
  “Bad news goes about in clogs, good news in stockinged feet.” Welsh Proverb.And we certainly saw both good and bad news in the economic reports released last week. Here are the details…and what they mean for home loan rates. On the good side, Retail Sales in March rose by a nice 0.8%, as consumers bought all kinds of products across the board. And when stripping out autos, sales still grew. This adds to the increasing trend seen in January and February and is a good sign for our economy, as consumers don’t spend when they aren’t feeling optimistic about their financial situation.  

But over in the manufacturing sector it was not as pretty a picture, as both the Empire State Manufacturing Index and the Philly Fed Index came in below expectations. This is largely being attributed to a global slowdown, and experts say that the outlook for our manufacturing remains positive…but just not accelerating at the present time. Things weren’t as pretty in the housing sector either, as both Existing Home Sales and Housing Starts fell in March.

 

And things in the labor market were verging on ugly, as Initial Jobless Claims spiked sharply higher. The Labor Department reported 386,000 fresh Claims in the latest week, above the 375,000 that was expected…and well above the 350,000 range seen in recent weeks.

 

Also verging on ugly was news out of Europe. There is growing and very justified concern about Spain’s ability to pay down debt, meet new budget deficit targets, and avoid a bailout or debt restructuring. The Spanish situation has prompted the G-20 (Finance Ministers and Central Bankers of the 20 largest economies) to urge the European Central Bank to do more to contain their debt crisis as it threatens global growth. And let’s not forget that besides Spain, we still have France, Portugal, Ireland and Greece to deal with in future months and years.

 

So what does all of this mean for Bonds and home loan rates? There will likely be more safe haven trading into the relative safety of the US Dollar and US Bonds (which will benefit Mortgage Bonds, to which home loan rates are tied) as the uncertainty out of Europe escalates. And more bad economic reports here in the United States could add to this safe haven trading into our Bonds, just as more good economic news here would likely benefit Stocks at the expense of our Bonds and home loan rates.

 

This mix of factors will continue to impact the direction in which Bonds and home loan rates move in the weeks ahead. The takeaway is that home loan rates remain near historic lows and now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     

 

  Forecast for the Week  

 

     
  The economic calendar this week will give the investor a broad view of the U.S. economy…but the Federal Open Market Committee (FOMC) meeting will be front and center in the minds of investors. Here’s a break down of what to watch:  

  • Consumer Confidence will be released on Tuesday…with Consumer Sentimentset to be delivered on Friday.
  • Also on Tuesday, New Home Sales for March will be released, followed by Pending Home Salesfor March on Thursday.
  • On Wednesday, Durable Orders– which are products that are supposed to last at least three years – will be released.
  • Initial Weekly Jobless Claimswill be released on Thursday. The number of new claims has been steadily rising in the past month, which is not a good sign for the labor markets. So all eyes will once again be on this report.
  • On Friday, the first reading on Gross Domestic Product (GDP)for the first quarter of 2012 will be announced.
  • Also on Friday, we’ll see the Employment Cost Index, which measures the costs of hiring and paying the American workforce. Higher costs could lead to inflation pressures, which could push Bond prices lower and home loan rates higher.

 

In addition to those reports, this week’s FOMC meeting will be closely watched by both the Bond and Stock markets for any clues on how the U.S. economy is holding up.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

 

When you see these Bond prices moving higher, it means home loan rates are improving – and when they 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 were 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, the mix of news last week benefitted Bonds and home loan rates. I’ll be watching closely to see what happens this week.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Apr 20, 2012)

 

Japanese Candlestick Chart

 

 
     

 

  The Mortgage Market Guide View…  

 

     
      Fun Housing Facts The United States Census Bureau recently released some fun facts related to housing across the country, based on data for 2010. Here are just a few highlights from the release that you may find interesting…and may want to pass on to others.  

Heating Our Homes

 

  • 57 million = Number of houses heated by utility gas.
  • 2.2 million = Number of houses heated by wood.
  • 38,010 = Number of houses heated by solar energy.

 

From Home to Work

 

  • 25.3 minutes = Average time workers across the country spent getting from home to work.
  • 31.8 minutes = Longest commute time in the nation, which belonged to Maryland residents.
  • 16.1 minutes = Shortest commute time in the nation, which belonged to North Dakota residents.

 

Home Sweet Home

 

  • 2,392 square feet = Average size of a single-family house built in 2010. That number was down a little from 2,438 square feet in 2009.
  • 131.7 million = Number of housing units counted in the 2010 Census. Compare that to 37.2 million in the first housing census, which was conducted in 1940!

 

Bonus Fact!

 

The first housing census in 1940 featured 31 housing questions – including some we may find odd today, such as whether the house had a radio…toilets or an outhouse…electric lighting…and running water.

 

Conversely, the 2010 census only included two housing questions: (1) whether the home was owned or rented and (2) whether the respondent sometimes lived or stayed somewhere else. The number of housing questions in the census has dropped because we now ask a number of housing questions in the American Community Survey, which is sent to about 3 million households nationwide every year.

 

Over the years, housing has really changed. But regardless of the time or location, one thing remains the same…there’s no place like home!

 

Economic Calendar for the Week of April 23 – April 27

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. April 24
10:00
Consumer Confidence
Apr
NA
 
70.2
Moderate
Tue. April 24
10:00
New Home Sales
Mar
NA
 
70.2
Moderate
Wed. April 25
08:30
Durable Goods Orders
Mar
NA
 
2.4%
Moderate
Wed. April 25
12:30
FOMC Meeting
Apr
NA
 
0.25%
HIGH
Thu. April 26
08:30
Jobless Claims (Initial)
4/21
NA
 
NA
Moderate
Thu. April 26
10:00
Pending Home Sales
Mar
NA
 
-0.5%
Moderate
Fri. April 27
01:00
Gross Domestic Product (GDP)
Q1
NA
 
3.0%
Moderate
Fri. April 27
01:00
GDP Chain Deflator
Q1
NA
 
0.9%
Moderate
Fri. April 27
01:00
Employment Cost Index (ECI)
Q1
NA
 
0.4%
HIGH
Fri. April 27
01:00
Consumer Sentiment Index (UoM)
Apr
NA
 
75.7
Moderate

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase,

Mar

19

Last Week in Review:It was a tough week for Bonds and home loan rates. Find out why.

Forecast for the Week:Housing data dominates the headlines, with news on Existing and New Home Sales, Housing Starts, and Building Permits.

 

View: If you ever need to rent a car for business or pleasure, youll definitely want to check out the money-saving tips below.

 

 
     
  Last Week in Review  
     
  Don’t fight the Fed.The markets certainly felt the truth of that sentiment last week, after the Fed released its Policy Statement from their regularly scheduled meeting of the Federal Open Market Committee. Read on to learn how this and all the news of the week impacted Bonds and home loan rates.

Last week’s Fed Statement was not a glowing endorsement of the economy, but they did admit that things are improving in most areas except housing, which remains “depressed.” While improvement in our economy is good, should this trend continue home loan rates could edge higher. Why? Because Stocks often benefit in strong economic times at the expense of Bonds (including Mortgage Bonds, which home loan rates are based on).

 

The Fed did acknowledge that inflation could increase in the near-term due to higher energy prices – and higher inflation is never good news for Bonds as inflation hurts the return of a fixed investment. And we did see a hint of this last week as the Consumer Price Index rose a bit in February (though the wholesale-measuring Producer Price Index was tame). If hints of inflation pick up in the weeks or months ahead, this could hurt Bonds and home loan rates.

 

But there was more salt in the wound from the Fed’s Statement for Bonds and home loan rates. Not only did the Fed fail to mention anything about another round of Bond buying (called Quantitative Easing or QE3), but there was word that out of 19 banks, all but four passed an important stress test. While that’s good news for the financial system and the economy, it did help Stocks at the expense of Bonds.

 

Another important point to note: Things have been quiet in Europe and this has lifted the safe haven trade, thereby further applying selling pressure on Bonds. That’s not to say that Bonds and home loan rates won’t be seen as a safe haven for trading in the future, as the uncertainty in Europe is far from over. In addition, the issues with Israel and Iran aren’t going to just disappear, and those issues may lead investors back into the safety of Bonds in the near future.

 

The bottom line is that even though Bonds and home loan rates worsened last week, rates still remain near historic lows and now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     
  Forecast for the Week  
     
  The economic release calendar is light this week, and housing data dominates the headlines.

  • Housing Starts will be delivered on Tuesday along with its cousin Building Permits.
  • On Wednesday, Existing Home Sales will be delivered, followed by New Home Saleson Friday.
  • Initial Weekly Jobless Claims will be released on Thursday. Jobless claims continue to hover near the 350,000 level as the labor sector rebounds.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

 

When you see these Bond prices moving higher, it means home loan rates are improving – and when they 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 were 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, Bonds and home loan rates worsened due to the upbeat Fed Statement and the improvement in Stocks. I’ll be watching the markets closely this week to see what happens.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Mar 16, 2012)

 

Japanese Candlestick Chart

 

 
     
  The Mortgage Market Guide View…  
     
      How to Avoid Unnecessary Rental Car Fees

You could end up doubling the daily rate unless you just say no at the counter.

 

By Jessica L. Anderson, Kiplinger.com

 

Renting a car is a little like buying a car: Before you can drive the vehicle off the lot, you have to withstand a hard sell for a slew of options. And in their zeal to nick your wallet, rental companies are getting creative.

 

For example, you’ll almost certainly get the pitch for prepaid gas. Presented as a convenience, it’s a big moneymaker because you are likely to pay for fuel you never use. Thrifty, for one, makes it a tough option to turn down. When you fill up the car yourself, the company requires that you provide a receipt proving that the gas station was within ten miles of the rental car lot. If not, Thrifty hits you with a fueling charge.

 

If you prepay for a rental from Avis and change your mind, make sure you cancel at least 24 hours in advance; if you don’t, you’ll get your money back – minus a $50 “no show” fee. A few rental car companies even charge a fee of $15 if you return your car a day early.

 

Be aware of charges for add-ons, too. A portable GPS unit typically costs $13 a day, and satellite radio can trigger a $5 daily fee. An “electronic toll transponder” carries a daily or weekly fee – $3 a day is typical – in addition to the tolls. Need a car seat for your kid? That’s another $11 a day.

 

If you’re charged a fee that wasn’t disclosed when you signed for the car or made an online reservation, fight it. Jeremy Acevedo, a research analyst at Edmunds.com and former Enterprise employee, says the squeaky wheel often gets the grease. Always pay with a credit card so you can dispute a charge if necessary. (If you use a debit card, a hold of $100 or more, plus the cost of the rental car, is often put on your account until the car is returned.)

 

The CDW decision. Nothing is as expensive, or as confusing, as the CDW, or collision damage waiver (sometimes called the LDW, or loss damage waiver). Agents are trained to make this rental car insurance, which typically costs $20 to $30 a day, sound nonnegotiable.

 

You probably don’t need it. Rental car damage and liability are covered by your auto insurance policy up to the same limits as for your personal vehicle, and your credit card likely fills any gaps. Most cards, for example, will pick up your deductible and miscellaneous fees.

 

But turning down the CDW isn’t a slam-dunk. Some people buy it because they don’t want an accident on their insurance record, should one occur. And if you don’t have auto insurance because you don’t own a car, you may need to suck it up. Your credit card is likely to cover collision damage to the rental car, but no credit card covers you for liability – personal injury or property damage you cause and for which you are liable. Although liability insurance up to state limits is usually included automatically in the rental cost, the protection is often minimal. To beef it up, you’ll have to buy a separate add-on called supplemental liability or additional liability insurance (for about $13 a day).

 

If you are in an accident and haven’t purchased the CDW, the rental company may charge you towing, administrative and “loss of use” fees – the money the rental company forfeits by having a car in the shop instead of out on the road. And those fees aren’t always covered by your insurance or credit card. Only a handful of states require that standard auto policies cover loss of use, and most major insurers don’t cover it. Progressive does include it on standard policies, however, and State Farm sells an annual endorsement for $50 to $100.

 

Among credit cards, American Express and Visa cover towing, administrative and loss-of-use fees. But only certain MasterCards (gold, platinum, World and World Elite cards) cover rental cars; that coverage includes towing and loss of use, but not administrative fees. Discover doesn’t cover any rental car fees.

 

Although you may be covered on paper for loss-of-use fees, you could get caught in the crossfire. Card issuers and insurers typically ask rental companies to prove loss of use by providing fleet logs showing that all other vehicles were rented out, but rental companies are often reluctant to turn over their records. It can come down to a gamble. Take the CDW, or take a chance that the stars won’t align against you. Even if you are in an accident and no one else pays up for loss of use, you’re likely to be charged a few hundred dollars at most.

 

Shop smart. To save money on your rental, shop around. Your best bet is to make a reservation as soon as you know you’re going to need a vehicle and then keep checking for lower prices as your departure approaches. Acevedo says walk-ups at the airport can get a steal if unreserved vehicles are sitting on the lot. If you won’t owe a cancellation fee, ask for the best rate at several rental counters.

 

You can often save money at smaller companies, such as Ace Rent A Car and Midway, which may not show up on the big travel Web sites. Ace just scored J.D. Power’s highest rating for overall satisfaction. (Enterprise scored the highest among the major brands; Avis and Thrifty scored the lowest.) If your goal is a low price and you’re not picky about which company you rent from, try Priceline or Hotwire – they’ll get you a reservation with a name brand for up to 40% off, but you won’t find out which one until you’re booked. Plus, you will have to prepay to get the lowest rates.

 

For longer trips, consider renting at an off-airport location. The airport concession fee is typically 11% to 13% of your total rate. Do the math to see whether a cab ride into town is worth the cost.

 

Reprinted with permission. All Contents 2012 The Kiplinger Washington Editors. Kiplinger.com.

 

Economic Calendar for the Week of March 19 – March 23

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. March 20
08:30
Housing Starts
Feb
NA
 
699K
Moderate
Tue. March 20
08:30
Building Permits
Feb
NA
 
676K
Moderate
Wed. March 21
10:00
Existing Home Sales
Feb
NA
 
4.57M
Moderate
Thu. March 22
08:30
Jobless Claims (Initial)
3/17
NA
 
NA
Moderate
Fri. March 23
10:00
New Home Sales
Feb
NA
 
321K
Moderate

 

   

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase,

Feb

27

In This Issue  
     
  Last Week in Review:The markets were closed Monday but the rest of the week had its share of good and bad news.

Forecast for the Week:A plethora of economic reports will hit the wires, with news on inflation, manufacturing, the state of the economy and more.

 

View: Thank you may be two small words, but they carry a large significance.

 

 
     
  Last Week in Review  
     
  Every cloud has a silver lining. That popular idiom is one way to look at the headlines last week, both here in the U.S. and overseas. Read on for the details and what they may mean for home loan rates. There was good news on Friday as Consumer Sentiment rose to 75.3, which is the best level since February of 2011. However, this news was tempered by the rise in oil prices that we have been seeing. Theres a good side and a bad side to higher oil prices.

On the one hand, high oil prices are very detrimental for the fragile U.S. economy, as consumers have to put more of their discretionary dollars into their gas tanks…meaning they have less to spend elsewhere. High oil prices are also inflationary as the added shipping and material costs apply upward price pressures on Producer or Wholesale goods that either have to be absorbed by the producer, thus hurting profits and the ability to expand or hire. Or the added costs get passed onto to the consumer…a la a rise in consumer inflation.

 

The silver lining is that high oil prices could actually be good news for home loan rates, as the dampening effect on economic growth produces a sluggish economic environment in which Bonds (including Mortgage Bonds, to which home loan rates are tied) thrive. This is an important topic to continue watching in the weeks and months ahead.

 

In silver linings overseas, after seemingly endless negotiations, Greece, investors and central bankers came to an agreement to provide Greece with 130Billion Euros ($172 Billion) in financial aid. This will help the country fund itself through March and into the future… as long as it institutes economic reform, austerity measures and meets deficit targets. Any deal with Greece will be very tough to implement and a default could still occur…which makes this another important topic to keep close watch on.

 

Between some of this uncertainty from overseas being lifted, a lower unemployment rate, and better than expected economic reports, home loan rates havestruggled to improve beyond some of the best levels seen over the past two weeks. But yet another silver lining is that home loan rates remain near historic lows, and now continues to be a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     
  Forecast for the Week  
     
  After last week’s holiday-shortened week, there will be plenty of economic reports to watch for.

  • Pending Home Saleswill be released on Monday and could have a relatively modest impact on trading.
  • Durable Orderswill be delivered on Tuesday. This report gives a look at consumer spending for products that are expected to last at least three years.
  • Another important report will be Consumer Confidenceon Tuesday, as the American consumer is a very important player in the U.S. economy.
  • In the manufacturing sector, the Chicago PMI and the ISM Index will be released on Wednesday and Thursday, respectively.
  • The all-important Gross Domestic Productreport comes on Wednesday and will give a detailed view on the overall picture of growth in the U.S.
  • Weekly Initial Jobless Claims will be released on Thursday, and last week’s claims remained near four-year lows, signaling that the jobs market could be healing.
  • Finally, the Core Personal Consumption Expenditure (PCE) report will be released on Thursday. This is the Fed’s favorite gauge of inflation.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

 

When you see these Bond prices moving higher, it means home loan rates are improving – and when they 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 were 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, roller coaster trading in the markets continues. I’ll continue to monitor this situation closely.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Feb 24, 2012)

 

Japanese Candlestick Chart

 

 
     
  The Mortgage Market Guide View…  
     
      7 Ways to Say Thanks

It’s hard to go through the day without hearing the words “thank you” or “thanks.” However, much of the time, people say those words quickly and without much meaning. Sure, a quick “thanks” is appropriate when someone holds a door for you or hands you something.

 

But when it comes to saying thank you to a client, partner, or friend for a more significant gesture, it’s important to go the extra mile. This is even more crucial in today’s business environment when success is so dependent on personal connections.

 

So how do demonstrate your appreciation? Here are 7 ways to say thank youto strengthen your relationshipsand to stand out in the mind of the person you’re thanking.

 

1. Classic and Classy. Mailing thank you notes has dwindled in today’s email business environment. That means you can really stand out and demonstrate your sincereappreciation by hand writing a brief thank you note and mailing it. Not sure what to write? No problem. Check out this simple advice for writing a thank you note.

 

2. A Little Surprise. Little surprises can be a fun way to thank a client, colleague, or friend. You may want to write a thank you note, but then slip it into a file that you hand the person. Or you could consider getting the person’s jacket for them when they get ready to leave a meetingand then slip the note into a pocket just before you hand it to him or her.

 

3. See You in the Papers. If you have a newsletter, social media page or blog, thank people publicly. A short “shout out” can go a long way.

 

4. Phone a Friend. There’s something about hearing a person’s voiceand it’s even better when they call just to say thank you rather than to ask for something.

 

5. Face-to-Face. Dropping by to say thank you goes a long way to demonstrating your sincerity and to strengthening your relationships.

 

6. Time Is On Your Side. People seem busier than ever. That’s why making time for someone means so much. One way to thank a person is simply to schedule some time for coffee or to chat. Then, turn off your cell phone and give him or her your undivided attention.

 

7. A Good Cause. Sometimes it’s not appropriate to give money or a gift. That’s ok. You may find that a unique and sincere gesture is to make a donation to a worthy cause that the person cares about. Then, let the person know about your donation as a way of saying thanks.

 

Economic Calendar for the Week of February 27 – March 02

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. February 27
10:00
Pending Home Sales
Jan
1.0%
 
-3.5%
Moderate
Tue. February 28
08:30
Durable Goods Orders
Jan
-1.4%
 
3.0%
Moderate
Tue. February 28
10:00
Consumer Confidence
Feb
62.5
 
61.1
Moderate
Wed. February 29
08:30
Gross Domestic Product (GDP)
Q4
2.8%
 
2.8%
Moderate
Wed. February 29
08:30
GDP Chain Deflator
Q4
0.4%
 
0.4%
Moderate
Wed. February 29
09:45
Chicago PMI
Feb
60.0
 
60.2
HIGH
Wed. February 29
02:00
Beige Book
Feb
 
 
 
Moderate
Thu. March 01
08:30
Personal Spending
Jan
0.3%
 
0.0%
Moderate
Thu. March 01
08:30
Personal Income
Jan
0.4%
 
0.5%
Moderate
Thu. March 01
08:30
Personal Consumption Expenditures and Core PCE
Jan
0.2%
 
0.2%
HIGH
Thu. March 01
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
 
1.8%
HIGH
Thu. March 01
08:30
Jobless Claims (Initial)
2/25
355K
 
351K
Moderate
Thu. March 01
10:00
ISM Index
Feb
54.5
 
54.1
HIGH

 

   

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.

 

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase,

Feb

27

Mortgage News
What Do GDP and QE3 Have to Do With Home Loan Rates?
If at first you don’t succeed, try, try again.That popular idiom could be applied to the Advance Gross Domestic Product (GDP) reading–or first of three readings–for the 4th Quarter of 2011, which came in at 2.8%, a bit below expectations of 3.2%. This number will be revised two more times, but if the final GDP remains at 2.8%…then the overall GDP for 2011 would be a scanty 1.57%.

GDP represents the market value of all goods and services produced within a country in a given period–and is an indicator of our standard of living–so that number would certainly be a “Gross” Domestic Product, especially when you consider that the government has underwritten more than half of that economic growth with the Payroll Tax benefit.

What’s more, besides being subsidized by the government’s Payroll Tax Holiday, the GDP reading was driven mainly by a build up in inventory (retailers buying from wholesalers) and NOT new sales to consumers. It is quite reasonable to see this trend reverse in the first part of 2012, which would make for a weaker GDP reading. And a weaker GDP reading will make a third round of Quantitative Easing (QE3) a virtual lock.

So, why is this significant and what does this have to do with home loan rates?

First, it’s important to understand that home loan rates are tied to Mortgage Bonds, and when Bonds improve, home loan rates typically move lower. History has shown that Bonds improve in anticipation of Quantitative Easing, but then selloff once the official announcement is made. Think about the old investing adage: “Buy on the rumor, and sell on the news.” So if rumors of QE3 continue to swirl, we should continue to see great home loan rates leading up to any actual announcement.

Even if the Fed doesn’t do QE3, rates will likely remain attractive as the continuing debt problems in Europe will make our Bonds a safe haven for investors. The bottom line is that now remains a great time to purchase or refinance a home. If you have any questions or need any help navigating today’s opportunities, call or email me anytime.

 
 
 
If you know anyone who is looking to buy, sell or refinance a home, please forward their name and telephone number to us. We will happily provide the same high level of service that we have provided to you. The greatest compliment you could possibly give us is the referral of your friends and family.
 

 

 
 
Finance News
Can a Credit Score Kill a Job Offer?
No, but your credit report might, so be upfront about problems.
By Lisa Gerstner, Kiplinger.com
Despite what you may have heard or read, employers do not have access to job candidates’ credit scores. That should come as a relief to cash-strapped job seekers with maxed-out credit cards or other score-busting blemishes.But your prospects for getting hired aren’t immune from a poor credit history. In most states, employers are able to check a potential or current employee’s credit report, which lists information such as balances on your loans and credit accounts, late payments, and debt collections.

About 13% of employers check credit reports for all candidates and 47% check for those applying to selected positions, according to the Society for Human Resource Management. Employers are usually most interested in the credit backgrounds of applicants who will handle finances, hold an executive-level position or have access to other employees’ confidential information (such as human-resources professionals). The black marks that might give an employer pause are ones that leave the deepest stains on your record: a loan default, a bankruptcy, a debt that’s gone to collection.

An employer must obtain your permission to pull your credit report. But declining is “like saying no to a Breathalyzer test,” says John Ulzheimer, president of consumer education for SmartCredit.com. “The consequences are sometimes worse than just getting it over with,” he says – namely, the employer could choose another applicant for the job if you are secretive.

Be honest and upfront about any problems. A potential boss may be sympathetic to the financial trauma that a layoff and long bout of unemployment have caused. And keep in mind that your credit record is only one piece of your profile. According to the SHRM, credit history ranked lowest among criteria employers used to vet candidates.

Reprinted with permission. All Contents ©2012 The Kiplinger Washington Editors. www.kiplinger.com.

 
 
 
 

 

Creative Cuisine
Quick and Easy Vegetable Soup (4-6 servings)
Soup is good food, especially when the temperatures are cool outside. Here’s a recipe for my Quick and Easy Vegetable Soup (4-6 servings):– 4 C chicken or vegetable stock
– 1 C water
– 1 14-15oz can chopped tomatoes in puree
– 1/2 onion, chopped
– 2 cloves garlic, chopped
– 1 large carrot, peeled and chopped
– 1 celery rib, chopped
– 1 cup fresh green beans, chopped into 1-inch long pieces
– 1 ear of corn, kernels removed
– 1 14-ounce can white cannellini beans, drained
– 1 Tsp Herbs d’ Provence, or Italian seasoning
– Extra-virgin olive oil
– Kosher salt and freshly ground black pepper

In a soup pot, heat 3 to 4 tablespoons of olive oil over a medium flame. Add onion, garlic, carrot and celery. Season with salt and pepper and allow the vegetables to cook until the onions just start to soften (3 to 4 minutes). To the vegetables, add the canned tomatoes, chicken stock, water and herbs. Season with salt and pepper, mix well and bring just to the boil. Add green beans, corn, and canned beans. Reduce to a very low simmer and allow the soup to cook for 12-15 minutes, or until the green beans soften, but remain slightly al dente.

No stranger to professional kitchens, Kirk Leins currently devotes most of his time to cooking instruction, food writing, and producing television. You can visit Kirk’s website at www.NoTimeToCook.com.

 

 

 
 
Street Smarts
Life Saving Knowledge
Every two minutes, sudden cardiac arrest strikes one American–and for every minute that passes without CPR or emergency treatment, the survival rate decreases by 10%.Automatic External Defibrillators (AEDs) increase a victim’s chance of survival by 90%–if applied to a victim within the first minute of a heart attack. That’s why, more and more public places like airports, schools, and health clubs host this life-saving device.

Knowledge is power–and in this case–it’s knowledge that can save your life, or the life of someone you love! Here is some important information you should know about AEDs:

  • AEDs are well marked and located in visible, high traffic areas like elevators, exits, fire extinguishers, restrooms or telephones.
  • The American Red Cross and American Heart Association state that the AED should be placed such that a person could get the device and get back to a victim of sudden cardiac arrest within three minutes.
  • The American Red Cross offers Heartsaver® CPR-AED classroom courses and eLearning courses.
  • AEDs are a bit expensive; however they are an investment that can save a life. They can be purchased by visiting the Centers for Health and Public Safety website.
  • AED rules and legislation varies by state, however under The Good Samaritan Law, limited immunity is offered “for individuals who render emergency treatment with a defibrillator. Specific protection varies by state.”

To learn more about AEDs, visit the Centers for Health and Public Safety website.

 

 

 
 
Home News
4 Tips for a Cozy Décor
Love the cozy feeling holiday decorations bring to your home? Here are four great tips for creating that ambiance anytime of year:Family photos. Groupings of family photos should be first on your list. Find shelf space or side tables that could use a personal touch, and then add a few family photos. The frames don’t have to match, but they should coordinate…and they should have the same design as the mood you’re trying to create. If it’s coziness you seek, try adding rich wood frames and classic designs to your décor.

Heirlooms and antiques. You’d be surprised what an antique camera can add to a display of family photos. Or how an antique vase can set the tone for an entire room. These items are inexpensive to purchase at an antique store, but if you have a family heirloom with a story it’s even better.

Personal or seasonal touches. Remember, your family and your community are unique and should be celebrated. So, for example, if your family took a unique vacation to a sandy beach last year, you can fill a decorative jar with the sand and surround it with a photo or two. Or, you can simply bring natural elements–such as pinecones or autumn leaves–inside and place them in a large bowl or dish with photos or candles.

Warm the senses. Don’t forget to fill the air with a fresh fragrance that fits the mood you’re creating. Often, those fresh scents are the first things that visitors notice. So consider lighting scented candles, purchasing plug-in air fresheners with seasonal scents, or just baking homemade cookies before company arrives.

 

 

 
 
Facts and Figures
Fumble? Foul? No…Just the Facts!
   
In honor of Super Bowl XLVI we turned to the Census Bureau for some fun facts about the demographics of the host city (Indianapolis) and the cities (New York and Boston) represented in this year’s big game at Lucas Oil Stadium.

  • New York ranks first on the list of the nation’s most populous cities.
  • On average, it takes New York residents 38.7 minutes to get to work–and 55% of them take public transportation.
  • Median home value of owner-occupied homes in Boston is $369,600.
  • 44% of Boston residents 25 and older have a bachelor’s degree or higher, according to data from 2010.
  • According to data from 2010, the estimated population of Boston was 617,594.
  • The median household income for Indianapolis, Indiana is $38,502.
  • The median home value of owner-occupied homes in Indianapolis is $118,100.
   

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase,

Feb

6

Last Week in Review:The Jobs Report for January is in – and the news was good!

Forecast for the Week:Stocks and Bonds will be battling over investing dollars as only two economic reports are scheduled.

 

View: President Obama has proposed a new plan to help homeowners refinance. Check out the details below.

 

 
     
  Last Week in Review  
     
  It’s been said that no news is good news. But last week, the Jobs Report brought some good news for the labor market. Read on for the details…and what they mean for home loan rates. The headline Jobs Report showed 243,000 jobs created, which was much better than expected. Meanwhile, a whopping 257,000 private jobs were created, also much higher than expected. Upward revisions to November and December added another 60,000 jobs to what was previously reported for those months. And adding to the euphoria was a 0.2% decline in the Unemployment Rate, bringing it to 8.3%…the lowest since February 2009.

 

 

Despite all this good news, the report did show a pretty sharp decline in the labor participation rate from 64% to 63.7%. We really need to have more people “participating,” or working to help pay down our debt. Understandably, the demographics of baby boomers retiring does account for some of the decline. But is it the entire 0.3%? And the U-6 Unemployment Rate (which counts all persons marginally attached to the labor force, including those who are employed part-time but would prefer full-time) remains at a lofty 15.1%, with that figure dropping just 0.1% for the month.

And there was other good news to note last week as well: The Commerce Department reported that Personal Incomes rose in December by 0.5%, above expectations and well above the 0.1% reported in November. This marked the largest increase in nine months!

So what does all of this mean for the housing market and home loan rates?

While Bonds and home loan rates did worsen on the good Jobs Report news (remember good economic news often causes money to flow out of Bonds and into Stocks, as investor try to take advantage of gains), home loan rates remain near historic best levels. In addition, the problems in Europe remainand as uncertainty reemerges, US Bonds (including Mortgage Bonds, to which home loan rates are tied) will benefit.

The takeaway from all of last week’s news is that the pace of improvement in the labor market is choppy and muddled at best. But the trend is improving over time, and this is welcome news for the struggling housing market because as people feel more secure in their jobs, they are more willing to consider making major purchases like a home.

The bottom line is that now is a great time to purchase or refinance. Let me know if I can answer any questions at all for you or your clients.

 

 
     
  Forecast for the Week  
     
  There are just two economic reports due for release this week and with earnings season winding down, the Stock and Bond markets will be battling over investing dollars.

  • Thursday brings the weekly Initial Jobless Claims Report. Last week people filing for first-time claims fell by 12,000 to 367,000, an encouraging sign now that claims have fallen below that dangerously high level of 400,000.
  • On Friday, we’ll see the first reading on Consumer Sentiment for February.

In addition, the Treasury will sell a total of $72 Billion in Notes and Bonds this week.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving – and when they 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 were 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, Bonds and home loan rates worsened after the Jobs Report was delivered on Friday. I’ll be watching closely to see what happens this week.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Feb 03, 2012)
Japanese Candlestick Chart

 

 
     
  The Mortgage Market Guide View…  
     
      New Proposal to Help Homeowners Refinance…

But Will It Ever Get Off the Ground?

The Obama administration has proposed a national refinance plan in an effort to stimulate the housing market by helping those homeowners who are underwater on their mortgages, or owe more on their loan than what the home is currently worth. Based on the proposal, the program would be available to responsible mortgage borrowers…and could save them up to $3,000 a year if they were to partake in the program.

However – and this is very important – the plan is currently just a proposal and would have to be passed through both the Senate and the House of Representatives.

President Obama first introduced the plan at his State of the Union Address on January 24th and stated just recently that this is a “make-or-break” moment for the middle class. The President said the program will cut through the red tape with no hidden fees.

There are, however, certain stipulations within the President’s proposal. The candidates would have to be current on their mortgages for the past six months and could only have one missed payment in the six months prior to that. The candidate would have to have a credit score of at least 580. The loans would be backed into Federal Housing Authority (FHA) loans and would come from loans that are privately held, and would expand on the Home Affordable Refinance Program (HARP) that is currently open to loans that are backed by Fannie Mae and Freddie Mac. In addition, the loans would have to be 30-year conforming loans or loans that fall between $271,050 to $729,250, and the residence must be owner occupied.

The White House would also want lenders to take a “haircut” for those homeowners who are deep underwater. Homeowners that are deep underwater could be more susceptible to foreclosure or to just “walk away” from their commitment to repay the debt.

Here’s an example of what the plan might mean to a homeowner, if the proposed plan were to be approved. On a $200,000 loan that is currently at 6%, the borrower would receive an interest rate of about 4.25%, which could amount to a savings of $216 a month on a 30-year mortgage. There would also be an option to move into a 20-year mortgage and – although the payments would not be lowered – it would provide an incentive to build equity and to pay off the loan in a shorter amount of time.

But before you get too excited or start making any plans, we have to remember that this is just a proposed idea at this time.

As with every new bill introduced to Congress, there could be pushback for the plan, which is expected to cost as much as $5 Billion to $10 Billion. The President said that the new plan would not add to the deficit; instead, the funds would come from a fee placed on large financial institutions. This has already gotten negative comments from Republicans in Congress. The White House said that other options to pay for the program would be considered.

This isn’t the first time that Capitol Hill has tried to combat the problems of underwater mortgages in the past few years and they have not been too successful. One big question is will the banks and servicers go along with the plan if it were to get through Congress.

In addition, the loans will be backed into FHA loans. But, FHA is on very shaky ground right now and is in no better shape financially than Fannie Mae and Freddie Mac. Some experts even think that FHA may need a bailout in the near future.

The last thing this Congress wants to do right now is to pass yet another stimulus bill, so many pundits see the proposal as “Dead on Arrival.”

In conclusion, an assortment of programs have been introduced to help struggling homeowners, and they have only had limited success. In order for this plan to get off the ground, it will need to be a joint effort by the White House, the lender, the servicer and the consumer… a feat that is always difficult to achieve when there are many moving targets and several different agencies involved.

Economic Calendar for the Week of February 06 – February 10

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Thu. February 09
08:30
Jobless Claims (Initial)
2/04
370K
 
367K
Moderate
Fri. February 10
10:00
Consumer Sentiment Index (UoM)
Feb
74.0
 
75.0
Moderate

 

   

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Jan

31

  In This Issue  

 

     
  Last Week in Review:The Fed met and a Gross Domestic Product was reported.Forecast for the Week:A busy week is ahead, with important news on inflation, manufacturing, and the job market.

 

View: Ever wondered what the world was really like when you were born? Theres a fun way to find out.

 

 
     

 

  Last Week in Review  

 

     
  If at first you don’t succeed, try, try again. Last week, that popular idiom could have applied to the Gross Domestic Product (GDP) Report. Read on to learn why…and how all the week’s news impacted Bonds and home loan rates. The Advanced GDP reading – or first of three readings – for the 4th Quarter of 2011 came in at 2.8%, a bit below expectations of 3.2%. This number will be revised two more times, but if the final GDP remains at 2.8%…then the overall GDP for 2011 would be a scanty 1.57%. That is certainly a “Gross” Domestic Product, when you consider that the government has underwritten more than half of that economic growth with the Payroll Tax benefit. 

 

Also in the news last week, the Fed’s Policy Statement after its regularly scheduled Federal Open Market Committee meeting was pretty much the same story as recent Statements, including stable long-term inflation expectations, a tepid economic recovery, and fragile job market. But there was one big exception to their norm. The Policy Statement said there will be “exceptionally low levels for the Federal Funds Rate at least through late 2014.” This is a huge change from the previous statements of “low rates until mid-2013.”

 

On the surface, extending the zero interest policy until 2015 tells us the Fed thinks the economy will just be slogging along, and accommodative monetary policy will be required to keep the economy growing at least at a modest pace. One could argue that recent economic data is better of late and that all this loose monetary policy is unnecessary. But the Fed has spoken, and as the old adage goes: “Don’t fight the Fed.”

 

In news out of Europe, yields in European Bonds have come downand by quite a bit. This sparked some optimism that Europe’s Long-term Refinance Operation (LTRO) has helped alleviate some pressure in the peripheral countries in the Eurozone, like Spain and Italy. So what’s the takeaway? In honor of the upcoming Super Bowl, here’s a football analogy: think of the LTRO as a super punt or “kick of the can” down the road. Europe needs to play a serious offensive line by creating a tighter fiscal union, implementing austerity measures, and developing growth strategies to help pay down the enormous debt.

 

The bottom line is that Bonds and home loan rates remain at historic best levels, which means now is still a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     

 

  Forecast for the Week  

 

     
  Economic reports will be plentiful – and important – this week:

  • The week kicks off Monday with the Core Personal Consumption Expenditure (PCE), which is the Fed’s favored gauge of inflation. This report will be closely watched, since any hint of an uptick in inflation could push Bond prices lower and, in turn, move home loan rates higher.
  • Manufacturing will also be in the spotlight with the Chicago PMI on Tuesday, followed by the ISM Indexon Wednesday.
  • Consumer Confidencewill also be delivered on Tuesday.
  • The ADP Private Employment Reportwill be released on Wednesday and comes before the government’s total job’s report on Friday.
  • As usual, Initial Jobless Claimswill be released on Thursday. This week’s report comes after an uptick of 21,000 last week.
  • Finally, on Friday the government’s monthly Employment Report will be released. The Employment Report consists of Non-farm Payrolls, the Unemployment Rate, Average Workweek and Hourly Earnings. This is an important report that can have a big impact on the markets. So I’ll be watching it closely.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

 

As you can see in the chart below, Bonds and home loan rates remain near their historic bests. I’ll be watching closely to see which way they move next.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jan 27, 2012)

 

Japanese Candlestick Chart

 

 
     

 

  The Mortgage Market Guide View…  

 

     
      Share This SiteAnd Try it YourselfEvery once in a while, you come across a website that’s just plain fun. This is one of those sites.

 

We’ve all seen websites that provide stats about what happened the year you were born. The website whathappenedinmybirthyear.com/ takes it a step further. It doesn’t just offer stats and facts. Instead, it provides a picture of the world you grew up in – including what it looked like and how it was different than the world we live in today.

 

But it’s more than just a fun website.

 

For one thing, it provides you with a light-hearted reason to connect with your clients on a personal level. You can share the site with them on social media or in one of your outreach pieces (such as a newsletter or email).

 

In addition, this site offers you a unique way to better understand your clients. If you know when a client was born, you can simply type in the year. In return, you’ll get a picture of that client’s social influences that have helped shape him or her. And that’s exactly the kind of information you need to put yourself in your clients’ shoes and understand them a little better. Of course, it doesn’t hurt that it’s entertaining too!

 

Try the site todayand consider sharing it with your clients as a way to connect with them on a more personal level.

 

Economic Calendar for the Week of January 30 – February 03

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. January 30
08:30
Personal Income
Dec
0.4%
 
0.1%
Moderate
Mon. January 30
08:30
Personal Spending
Dec
0.2%
 
0.1%
Moderate
Mon. January 30
08:30
Personal Consumption Expenditures and Core PCE
Dec
0.1%
 
0.1%
HIGH
Mon. January 30
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
 
1.7%
HIGH
Tue. January 31
08:30
Employment Cost Index (ECI)
Q4
NA
 
0.3%
HIGH
Tue. January 31
09:45
Chicago PMI
Jan
61.0
 
62.5
HIGH
Tue. January 31
10:00
Consumer Confidence
Jan
67.0
 
64.5
Moderate
Wed. February 01
08:15
ADP National Employment Report
Jan
250K
 
325K
HIGH
Wed. February 01
10:00
ISM Index
Jan
55.0
 
53.9
HIGH
Thu. February 02
08:30
Jobless Claims (Initial)
1/28
375K
 
377K
Moderate
Thu. February 02
08:30
Productivity
Q4
2.0%
 
2.3%
Moderate
Fri. February 03
08:30
Non-farm Payrolls
Jan
225K
 
200K
HIGH
Fri. February 03
08:30
Unemployment Rate
Jan
8.4%
 
8.5%
HIGH
Fri. February 03
08:30
Hourly Earnings
Jan
0.2%
 
0.2%
HIGH
Fri. February 03
08:30
Average Work Week
Jan
34.4
 
34.4
HIGH
Fri. February 03
10:00
ISM Services Index
Jan
53.0
 
52.6
Moderate

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.
 
 
 Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

 

Jan

21

  Last Week in Review:Rumors were swirling out of Europe, while inflation news was swirling here at home.

Forecast for the Week:The second half of the week heats up with news on the housing market and the state of the economy. Plus, the Fed meets.

View: A fee increase is coming that will impact home loan rates. Be sure to read the details below.

 

 
     
  Last Week in Review  
     
  It’s almost all Greek to me. Last week, more news from Greece hit the wires, as did several pieces of inflation news here at home. Read on to learn what happened, and what the impact was on home loan rates. First, it’s important to remember that back in October, a deal called for Bondholders to “accept” a 50% haircut on the face value of the Greek debt. Last week, rumors about this amount were swirling, saying that Greece is close to a deal that would entail a 68% haircut on the face value of their debt. And if that’s not concern enough, a larger issue remains.

 

 

After the proposed austerity measures, wage cuts, and tax increases are instituted, will Greece – not to mention Italy, Portugal, and other struggling economies – be able to “grow” their way out of debt? Given that the World Bank lowered its 2012 global growth forecast to 2.5% from last summer’s estimate of 3.6%, the odds sure seem tough. This is an important story to watch as the year unfolds.

Here at home, inflation was in the news twice last week…and the results were mixed. On Wednesday, the wholesale inflation measuring Core Producer Price Index (PPI) came in hot, elevating the year-over-year Core PPI rate to a lofty 3%…the highest since April 2009. Meanwhile, Thursday’s Core Consumer Price Index (CPI) was inline with expectations and tame overall, though it is worth noting that the 2.2% Core CPI year-over-year reading is near the upper end of the Fed’s tolerance level.

Remember, inflation is the archenemy of Bonds and home loan rates, like Kryptonite to Superman. That’s because inflation erodes the value of the fixed return provided by a Bond, which causes home loan rates to rise. It will be interesting to see what – if anything – the Fed says about inflation after it’s regularly scheduled meeting of the Federal Open Market Committee this week…as any talk or sign of inflation can move the markets and impact rates.

Even with all the news last week, it’s still a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     
  Forecast for the Week  
     
  The reports that will be released this week will carry some weight:

  • We’ll see a double dose of housing news with Pending Home Sales on Wednesday and New Home Saleson Thursday.
  • As usual, Initial Jobless Claimswill be released on Thursday. Last week’s read came in at 352,000, a drop of 50,000. That’s the biggest decline since September 2005!
  • We’ll also see two important reports that will show us how the economy is doing. Thursday brings the Durable Goods Report, which gives us a read on big ticket items. This will be followed by the first reading on Gross Domestic Product(GDP) for the Fourth Quarter of 2011 on Friday.
  • Finally, Consumer Sentiment will also be released on Friday.

In addition to those reports, the Federal Open Market Committee will hold a two-day meeting this week. The meeting will begin January 24 and end with a policy statement at 12:30 pm ET on January 25. There is no chance of a rate hike, but I will be listening for any hint of a third round of Quantitative Easing (QE3).

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, some encouraging economic and company earnings news last week helped halt the improving trend Bonds had been seeing. I’ll continue to monitor this situation.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jan 20, 2012)

 

Japanese Candlestick Chart

 

 
     
  The Mortgage Market Guide View…  
     
      Fee Increase to Impact Home Loans

In December 2011, Congress reached a last-minute deal to fund the payroll tax cut extension. The payroll tax extension will provide a 2% tax reduction for individuals making up to $106,800, so the tax extension will be very helpful for many Americans who are struggling during these tough economic times. But like so many things in our tangled economy, there’s a flip side. In this case, the tax cut deal has a rippling effect that will impact the mortgage world.

Here’s what’s happening and what it means to home loan rates:

What is happening and why? To put it bluntly, the passage of the payroll tax cut extension is being funded via a mandate to Fannie Mae and Freddie Mac (the nation’s largest providers of mortgage money) to increase their guarantee fees or “g-fee’s” by at least 10 basis points on the rate. So rather than giving a par rate of 4.00%, for example, the par rate is now increased by at least 10 basis points, or approximately 4.10%. But as you probably knowhome loan rates are priced and offered in .125% increments, so this will most likely impact the consumer by .125% in rate. Whether you agree or not on the politics behind this cost being passed along to folks who are taking out mortgages, the Congressional Budget Office recently estimated that the increase will ultimately pay for about $35.7 Billion of the cost of the payroll tax extension.

What exactly is this “g-fee”? The guarantee fee or “g-fee” is an amount charged by mortgage-backed securities (MBS) providers, like Freddie Mac and Fannie Mae, to help protect against credit-related losses in the overall mortgage portfolio. In other words, it acts a lot like insurance and helps lower the overall riskwhich means home loans can be offered at terrific interest rates to borrowers that have good – but not perfect – credit.

What exactly is the impact of the rate increase? For example, for a $200,000 home loan, the increased g-fee (assuming a .125% increase in rate) would equate to $250 more per year in interest, or $7,500 more over 30 years. Someone buying or refinancing a home can certainly choose to buy down the cost with cash up front – but most folks will not do this.

Who will this impact? The change will impact all new borrowers of Fannie Mae and Freddie Mac loans. The bill will also impact Federal Housing Administration (FHA) loans by increasing the annual mortgage insurance premium that borrowers pay by one-tenth of a percent.

When will it start? Officially, the increase to guarantee fees will begin on April 1, 2012. However, the increase is already starting to be seen in rate sheets right now, since home loans being originated now will likely not be closed, pooled and securitized until Apriland therefore will need the increased g-fee priced in earlier.

How long will this be in effect? The increase will be effective through October 1, 2021.

The bottom line is that the g-fees will be going upand this will impact homebuyers looking to obtain a home loan through Fannie Mae, Freddie Mac and FHA.

The good news is that home loan rates are still at historic lows right now, and it’s a great time to purchase a new home or refinance. If you or anyone you know has any questions, please call or email!

Economic Calendar for the Week of January 23 – January 27

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Wed. January 25
10:00
Pending Home Sales
Dec
NA
 
7.3%
Moderate
Wed. January 25
12:30
FOMC Meeting
Jan
 
 
0.25%
HIGH
Thu. January 26
08:30
Jobless Claims (Initial)
1/21
NA
 
352K
Moderate
Thu. January 26
08:30
Durable Goods Orders
Dec
NA
 
3.8%
Moderate
Thu. January 26
10:00
New Home Sales
Dec
NA
 
315K
Moderate
Fri. January 27
08:30
Gross Domestic Product (GDP)
Q4
NA
 
1.8%
Moderate
Fri. January 27
08:30
Chain Deflator
Q4
NA
 
2.6%
Moderate
Fri. January 27
10:00
Consumer Sentiment Index (UoM)
Jan
NA
 
74.0
Moderate

 

   

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Jan

15

Last Week in Review:Consumers are feeling good, but how good was last week’s news?Forecast for the Week:It’s a holiday shortened week, but the economic calendar is full. News on manufacturing, inflation, and housing is ahead.

 

View: Wondering what the housing trends for 2012 will be? Check out 11 trends we saw in 2011.

 

 
     

 

  Last Week in Review  

 

     
  “Happy days are here again.” Milton Ager and Jack Yellen.And while it seems that consumers are certainly feeling happier, not everything that happened last week was cause for song.There was good news last Friday, as the first look at Consumer Sentiment for January came in at 74.0, which is the highest level since May 2011. However, there was also news last week that the holiday shopping season may not have been as robust as previously thought.Retail Sales in December rose by a meager 0.1% from 0.4% in November, and when stripping out autos, sales actually fell 0.2%. Why did this happen? It seems that steep holiday discounting held down the value of goods sold, so sales were big, but only because of the heavy discounting.

 

The news out of Europe last week also wasn’t too happy. German Chancellor Angela Merkel and International Monetary Fund Managing Director Christine Lagarde met to discuss and finalize the debt restructuring deal for Greece. Back in October, a deal called for Bondholders to “accept” a 50% haircut on the face value of the Greek debt – but as creditors and authorities have started to forge a final deal, the actual haircut back to investors is looking quite likely to be larger than 50%. This is simply because worsening financial conditions in the Greek economy make paying the debt back with “just” a 50% haircut highly unlikely…maybe impossible. What’s more, the next reasonable question to consider is will Ireland, Portugal and even Italy ask for a similar haircut or deal on what may be unsustainable debt in their countries?

 

The happy news is that these problems are finally being addressed to make things better in the future. And in the short term, the uncertainty should keep money flowing into the relative safe haven of the US Dollar and US Bonds – including Mortgage Bonds, to which home loan rates are tied. In addition, Mortgage Bonds continue to be supported by the Fed’s purchases, which are also helping to keep home loan rates at record low levels.

 

All of this means that now continues to remain a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     

 

  Forecast for the Week  

 

     
   Despite the Bond Markets and all Capital Markets being closed on Monday in observance of Martin Luther King, Jr. Day, the rest of the week’s economic calendar is full:

 

  • Manufacturing strong? The week’s economic data kicks off on Tuesday with a manufacturing indicator from New York’s Empire State Index for January. In addition, the Philadelphia Fed Indexfor January will be released on Thursday. Last month, both reports reached their highest levels in months. Remember: The Stock Market likes to see healthy economic growth because that translates to higher corporate profits. However, the Bond market prefers a moderate growth environment that won’t generate inflationary pressures.
  • Speaking of inflation We’ll see inflation reports on the wholesale level in the Producer Price Index on Wednesday, followed by the Consumer Price Indexon Thursday. Inflation has remained tameand Bondholders will be closely watching these two indicators for any signs of an uptick.
  • Back on track this week? Initial Jobless Claimswill be released as usual on Thursday. Last week’s number showed an uptick in claims and broke the recent trend of decreasing claims. However, the rise could have been due in part to layoffs of seasonal holiday workers. So the markets will be watching to see if this report gets back on track with the recent positive trend.
  • No place like home! Housing data in the form of Housing Starts, Building Permits and Existing Home Sales will all be reported this week. Housing continues to troll around low levels despite record low home loan rates.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

 

As you can see in the chart below, Bonds and home loan rates are continuing their improving trend. I’ll be watching this closely as we head further into the new year.

 

 

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jan 13, 2012)

 

Japanese Candlestick Chart

 

 
     

 

  The Mortgage Market Guide View…  

 

     
      Housing News: 11 Trends from 2011 The National Association of Realtors surveys homebuyers and sellers each year to uncover housing trends and monitor changes taking place in the industry. This year’s report highlights a number of trends that haven’t been seen in years. Here are just 11 highlights from the 2011 report.

1. In 2011, 37% of homebuyers were first-time buyers – which was down from 50% in 2010.

2. Last year, 88% of homebuyers used the Internet to search for a home. That number was down slightly from a high of 90% in 2009.

3. The typical homebuyer searched for 12 weeks and viewed 12 homes.

4. The number of buyers who purchased their home through a real estate agent or broker climbed to 89% – a share that has steadily increased from 69% in 2001.

5. Nearly 1 out of 4 buyers said the application and approval process was “somewhat more difficult” than expectedand 16% reported it was “much more difficult” than expected.

6. About half of home sellers traded up to a larger and more expensive homeand 60% traded up to a new home.

7. The top 3 factors influencing neighborhood choice were: the quality of the neighborhood, the convenience to job, and the overall affordability of homes.

8. The typical seller lived in their home for 9 years. That number has increased from 6 years in 2007.

9. Although 61% of sellers said they reduced their asking price at least once, the average home sold for 95% of the listing price.

10. Only 10% of sellers sold their homes without the assistance of a real estate agent. Of those people, 40% knew the buyer prior to the sale.

11. The typical “for sale by owner” home sold for $150,000 compared to $215,000 for the average agent-assisted home sale.

 

All Contents 2012 The National Association of Realtors.

 

Economic Calendar for the Week of January 16 – January 20

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. January 17
08:30
Empire State Index
Jan
10.0
 
9.5
Moderate
Wed. January 18
08:30
Producer Price Index (PPI)
Dec
0.1%
 
0.3%
Moderate
Wed. January 18
08:30
Core Producer Price Index (PPI)
Dec
0.1%
 
0.1%
Moderate
Wed. January 18
09:15
Industrial Production
Dec
0.5%
 
-0.2%
Moderate
Wed. January 18
09:15
Capacity Utilization
Dec
78.1%
 
77.8%
Moderate
Thu. January 19
10:00
Philadelphia Fed Index
Jan
10.0
 
10.3
HIGH
Thu. January 19
08:30
Building Permits
Dec
680K
 
681K
Moderate
Thu. January 19
08:30
Housing Starts
Dec
670K
 
685K
Moderate
Thu. January 19
08:30
Consumer Price Index (CPI)
Dec
0.1%
 
0.0%
HIGH
Thu. January 19
08:30
Core Consumer Price Index (CPI)
Dec
0.1%
 
0.2%
HIGH
Thu. January 19
08:30
Jobless Claims (Initial)
1/14
387K
 
399K
Moderate
Fri. January 20
10:00
Existing Home Sales
Dec
4.57M
 
4.42M
Moderate

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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. 

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Jan

10

Last Week in Review:Unemployment hit a three-year low. How did Bonds and home loan rates react?Forecast for the Week: The second half of the week will be a busy one, with news on retail sales, consumer sentiment, and more.

View: Want some help keeping your New Year’s Resolutions? There’s an app for that!

 

Last Week in Review

 

 

“Workin’ nine to five. What a way to make a livin.'” Dolly Parton. And with last week’s Jobs Report showing that unemployment has reached three-year lows, that’s something more people have been able to do lately. Read on to learn more about what’s happening in the labor market…and with home loan rates.On Friday, the Labor Department reported that 200,000 jobs were created in December, with 212,000 private job gains offsetting modest losses in government jobs. Adding to the positive spin of the report was the Unemployment Rate falling to 8.5% from a previously reported and upwardly revised 8.7% reading.While people being removed from the labor force are skewing this unemployment number to some degree, it’s important to note that the U-6 unemployment rate dropped a few ticks as well, to 15.2%. This number includes ALL unemployed individuals, including those “marginally attached” to the labor force, who are either ‘discouraged’ and haven’t sought work recently, as well as those folks working part-time who really desire full-time jobs.

Overall the Jobs Report was a modestly positive reading on the labor market. We still have 5.6 million people unemployed for 27 weeks or more, and that number is little changed this month. But the big takeaway today is that the trend is improving.

The other big takeaway is that bad news out of Europe helped balance out the good Jobs news here at home…allowing Bonds and home loan rates to recover from their initial negative reaction to the Labor Department’s report. The Euro is continuing to be weighed down by rising concern on member countries’ ability to get their deficits in order and their debt in manageable position.

The bottom line is that the problems in the Eurozone are vast, complicated, and without easy solutions…so it will take a very long time for clear resolution. And during times of global uncertainty, money will flow into the relative safe haven of the US Dollar and US Bonds – including Mortgage Bonds, which home loan rates are tied to. This means that home loan rates should continue in their sideways trend and remain near historic lows, making now a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

Forecast for the Week

 

 

 

The second half of the week features several important economic reports:

  • The Fed’s Beige Bookwill be released on Wednesday. This is a report on economic conditions from the 12 Federal Reserve District Banks around the country.
  • Initial Jobless Claims will be released on Thursday. Last week’s number fell by 15,000 to 372,000 and the report signaled that the labor market could be turning the corner to greener pastures.
  • Retail Saleswill be released on Thursday and will be closely watched by both investors and traders. Last week, it was reported that retailers saw better-than-expected revenues for same-store sales in December, but the numbers were achieved by big discounts. Sales on Black Friday were robust, but fell off in the ensuing weeks during December. So the markets will be watching closely for the final numbers this week.
  • The first look on Consumer Sentiment for January will be released on Friday.

In addition to those reports, the Treasury Department will sell a total of $66 Billion in government securities on Tuesday, Wednesday, and Thursday. Those auctions could impact the markets, depending on how they’re received. So, I’ll be watching the results – and their impact – closely.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and home loan rates remain near their record best levels. I will be monitoring this closely in the weeks ahead.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jan 06, 2012)
Japanese Candlestick Chart

 

The Mortgage Market Guide View…

 

 

There’s an App for That New Year’s Resolution!Making It Happen, Part 2

In last week’s View article, we focused on 5 steps to achieving your New Year’s Resolutions. Those steps included: setting realistic goals, making a simple plan for each goal, announcing your goals, tracking and celebrating your progress, and avoiding the urge to give up if you have a setback.

Luckily, you’re not on your own to work through those steps. That’s because there are a number of social media websites and smart phone applications designed to help you.

Obviously, popular apps like Facebook and Twitter can help you announce your goals, hold yourself accountable, and receive supportive feedback from friends and family members. But there are a number of additional resources that you may not know about.

Here are just 5 social media sites and apps that can help you set your New Year’s resolutions…and stay on track!

1. Tweet Reminders. Twitter is great for connecting with people and sharing news instantaneously. But did you know it’s also a great way to remind yourself about tasks? Need a reminder to go to the gym… or to call those past clients? No problem. Visit the Tweet Reminders site, and then enter your Twitter username and up to 5 tasks or reminders. You can even pick a date and time. Then, Tweet Reminders will send you a direct message on Twitter to remind you about them. It’s both an easy and helpful thing to do.

2. Moteevate. Regardless of whether your goal is big or small, this site has the inspiration, energy, and advice you need to reach it. With moteevate, you get support from people you already know as well as advice from experts in the field – all while being surrounded by people looking to achieve similar goals. You can even moteevate in teams and act as moteevators for each other. The site also includes cool trackers to record your progress and milestones. Plus, you can customize the privacy settings to keep your goals to yourself or share them with others. And best of all, the basic platform is free to use with the caveat that you pay whatever you want after you achieve your goal. In fact, this honor system is the only thing old-fashioned about moteevate.

3. Toodledo. This is a businessperson’s dream app. You’ve no doubt seen a To-Do list before…but this app kicks it up a notch! Not only does it help you easily organize your tasks and set alarms, but it also allows you to collaborate with other people and establish sub-tasks to work towards your goal in small steps! Plus, Toodledo can be used on your mobile phone, in your email, on your calendar, and even integrated directly into your web browser. So you can stay on track from anywhere…and at any time.

4. StickK. The basic principle of this app is that “incentives get people to do things.” So if you really want to achieve a goal – whether it’s personal or professional – it’s time to put your money where your mouth is. Basically, stickK allows you to create a Commitment Contract focused on achieving a specific goal. As part of the process, you set your goal and timelines, stakes, referee who will monitor your progress, and supporters who will cheer you on. If you achieve your goal in your timeframe, you don’t lose the stakes you wagered. But – the best part is – even if you don’t achieve your goal, the money you wagered goes to a worthy cause or charity that you designate. So it truly is a win-win situation!

5. GymPact. This is similar to stickK in that you put money on the line…but it’s different in that you can also earn some money. You start by making a commitment that you will go to the gym a certain number of times per week (don’t worry, you can change your pact any week). You also set the monetary stakes that you’ll pay if you don’t meet your commitment. Then, you simply use the GymPact iPhone app to check in when you go to the gym. When you meet your weekly goal, you’ll be rewarded with real cash, funded by the people who didn’t work out! The more days you commit, the more cash you earn. The only downside is that you need an iPhone (or an iPod Touch and a gym with Wi-Fi) to participate, since apps for other systems aren’t available.

Of course, this is just the tip of the iceberg when it comes to social media websites and apps designed to help you set and achieve your goals. Best wishes to you in the coming weeks and months.

And, if your New Year resolutions involve any financial or housing matters that I can help with, please call or email today. I’ll be happy to help out in any way that I can.

Economic Calendar for the Week of January 09 – January 13

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Wed. January 11
02:00
Beige Book
 
 
 
 
Moderate
Thu. January 12
08:30
Jobless Claims (Initial)
1/7
375K
399K
375K
Moderate
Thu. January 12
08:30
Retail Sales
Dec
0.4%
0.1%
0.4%
HIGH
Thu. January 12
08:30
Retail Sales ex-auto
Dec
0.4%
-0.2%
0.3%
HIGH
Fri. January 13
10:00
Consumer Sentiment Index (UoM)
Jan
71.0
 
69.9
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.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
 

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Jan

4

  Last Week in Review:Consumer Confidence here in the U.S. is on the rise, but what does that mean for home loan rates?Forecast for the Week: The Markets will be closed on Monday for the New Year holiday, but we will see important news on the Jobs Market after that.

 

View: Are you “resolved” to keep your New Year’s Resolutions this year? The tips below will help!

 

 
     

 

  Last Week in Review  

 

     
  It’s been said that “the only constant is change.” And we certainly saw a lot of changes in 2011. As we ring in 2012, here’s a look at how 2011 ended, and what lies ahead for home loan rates. The Stock and Bond Markets were closed on Monday in observance of the Christmas holiday, and it was a fairly quiet week after that. However, there was some good news, as Consumer Confidence came in at 64.5 for December. Not only was this the third highest number reported for 2011, but this important index has jumped nearly 25 points in the past three months and now sits at its highest level since April. What’s more, this report followed the recent Consumer Sentiment Index reading, which also came in at its highest level in six months.

 

While consumers certainly appear more optimistic here, the news hasn’t been as positive out of Europe. The Euro struggled somewhat last week after just an okay performance from one of Italy’s Bond auctions. While the country sold all their debt at yields slightly lower than where they were just the day prior, yields are still historically high (near 7% on 10-Year Notes) for a country that has a lot of debt to service and refinance in the coming year. In addition, Spain’s government announced on Friday that the country’s budget deficit will surpass 8%. Spain also unveiled new austerity measures to combat their economic and budgetary difficulties.

 

So what does all of this mean for home loan rates here in the U.S. in 2012? The uncertainty in Europe should continue to help Bonds and home loan rates, as investors will see our Bonds as a safe haven for their money – and remember, home loan rates are tied to Mortgage Bonds, so rates typically improve as Mortgage Bonds improve. However, continued good economic reports here in the U.S. could balance out those improvements. That’s because investors will typically move their money out of Bonds and into Stocks during good economic times, so they can take advantage of gains.

 

The bottom line is that whatever lies ahead this year, 2012 begins with home loan rates near historic lows…which makes this a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     

 

  Forecast for the Week  

 

     
  The Stock and Bond Markets will be closed on Monday, January 2, in observance of the New Year’s holiday, but the week will be a busy one after that.

  • Tuesday brings the Federal Open Market Committee Minutesfrom the Fed’s last meeting in 2011. The Markets will be especially interested to hear what the Fed may have said about inflation.
  • The ISM Services Index will be reported on Thursday. This report gives investors a gauge as to how the service sector is holding up in this economy. Individuals employed in this sector produce services rather than products. Service sector jobs provide a significant number of jobs in the US – including housekeeping, messenger services, tax preparation, nursing, and teaching.
  • Also on Thursday, we’ll see another weekly Initial Jobless Claims Report. It is encouraging to see that Claims remain beneath the 400,000 mark, which is a sign that the labor market is improving.
  • The biggest news of the week will be Friday’s Jobs Report, as the Labor Department reveals the latest unemployment figures and how many new jobs were created in December.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

 

As you can see in the chart below, Bonds and home loan rates remain near their historic best levels. I’ll be keeping a close eye on this as the year progresses.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Dec 30, 2011)

 

Japanese Candlestick Chart

 

 
     

 

  The Mortgage Market Guide View…  

 

     
      Making It Happen!Part 1: 5 Simple Steps for Achieving Your New Year’s Resolutions

 

Each new year is full of promise and potential. Perhaps that’s why so many of us choose this time of year to make positive changes in our lives.

 

And, believe it or not, achieving your goals can be easier than you think. The following 5 steps can help you get started and follow through!

 

1. Set realistic goals. The first step to your successful New Year’s resolutions is to set realistic goals for the coming weeks and months. You can start by focusing on the things you’re passionate about or the things you’ve always wanted to do. Maybe it’s a worthy cause you want to become involved in…or maybe you want to kick a habit that’s bothered you for years. If it’s something that you’re passionate about, you’ll have a better chance of being successful. Once you have the topic, make sure you write down a specific, attainable goal. It’s not enough to just think about doing something. Come up with a specific statement you want to achieve. For example, the most common resolution is to lose weight. But that’s not specific enough. Write down exactly how much weight you want to lose and by when. But make it realistic…and healthy at the same time.

 

2. Make a simple plan to achieve each goal. Once you have your goals written down, take the resolution a step further by figuring out how you’ll achieve it. That means breaking the goal down into simple steps that you can achieve over time. And, often, it means multiple little steps. So, for the weight loss resolution, you may write down a number of simple, daily or weekly steps – such as exercise 20 minutes three times a week, eat vegetables and fruit with each meal, switch to diet cola or better yet water during the day, and lose a certain number of pounds per month. Remember to consult a physician before starting any weight loss or exercise routine to make sure you’re approaching it in a healthy manner.

 

3. Announce your goals. One of the best ways to make sure you stick to your goals is to make them known to your friends, coworkers, and family members. The reality is, once you’ve told people you’ll do something, you’ll feel more accountability than if you just keep it to yourself. You’ll also have a cheering section to help you stay focused and positive as you work to achieve your goals. But don’t just share your goals; share the specific steps that you’re going to take each day or week to achieve those goals. If you use any social media websites to connect with friends and family, make your goals and steps part of your daily/weekly updates…it’s a great way to get the word out and hear feedback from people who want to help you stay on track.

 

4. Track and celebrate your progress. Small steps aren’t just about making your way to a goal; they’re also about building momentum, a positive attitude, and celebrating successes along the way. There are a number of ways to track and celebrate your success. For example, if your goal is to work out 20 minutes a day three times a week, you can use a marker and a calendar. Each day you work out, simply color that day in green (or another positive color that you like). As the month unfolds, you’ll see more and more green covering the calendar, which will help you see just how much work you’ve done and keep you motivated to keep going. In addition, you can also use social media to track and celebrate your success. Maybe you tweet or update your Facebook status every time you exercise. Or maybe you announce when you’ve lost a few pounds. The point is, you’ve already announced your goals to friends and family as a way to hold yourself accountable, now it’s time to celebrate with those same people every time you achieve a step along the way.

 

5. Don’t get discouraged. You’re bound to have good weeks and bad weeks. Just because you fall off track once or twice doesn’t mean you should give up. Instead, acknowledge that you had a bad day or week, figure out what happened to throw you off track (maybe it was a busy or stressful week), and then make a plan to overcome the problem if it happens again. For example, if you had a tough week at work that required you to work late and miss the trip to the gym, make a plan to be proactive the next time work gets busy. Perhaps you make a plan to walk during your lunch break or wake up early to do jumping jacks and push-ups before heading into the office. But…whatever you do…don’t give up on your goals or yourself. Review your plan and recommit yourself to those simple steps. You can even use social media to acknowledge a mistake and commit to overcoming that problem in the future. That way, you’ll have a new sense of accountability and support from your friends and family.

 

Best wishes to you in achieving all your goals and dreams this year. And if your New Year’s resolutions involve any financial or housing matters that I can help with, please call or email today. I’ll be happy to help out in any way that I can.

 

Economic Calendar for the Week of January 02 – January 06

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. January 03
10:00
ISM Index
Dec
53.0
 
52.7
Moderate
Tue. January 03
10:00
Construction Spending
Nov
.8%
 
.8%
Low
Tue. January 03
02:00
FOMC Minutes
Dec 13
 
 
 
Low
Wed. January 04
10:00
Factory Ord. & Manufacturing Inventories
Nov
1.9%
 
-0.4%
Moderate
Thu. January 05
08:30
Jobless Claims (Initial)
12/31
375K
 
381K
Moderate
Thu. January 05
10:00
ISM Services Index
Dec
53.0
 
52.0
Moderate
Fri. January 06
08:30
Non-farm Payrolls
Dec
150K
 
120K
HIGH
Fri. January 06
08:30
Unemployment Rate
Dec
8.7%
 
8.6%
HIGH
Fri. January 06
08:30
Hourly Earnings
Dec
0.2%
 
-0.1%
Moderate
Fri. January 06
08:30
Average Work Week
Dec
34.3
 
34.3
Low

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.
 

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Dec

19

  In This Issue  

 

     
  Last Week in Review:Several reports brought good news to the Markets, plus there was news on inflation.Forecast for the Week: The Bond Markets may be closing early Friday, but there will be plenty of reports on the housing market, inflation, and the state of the economy  

View: Want to give a gift that keeps on giving? Check out this great idea below.

 

 
     

 

  Last Week in Review  

 

     
  “Whistle while you work.” Snow White. That’s something more people have been able to do lately, as Initial Jobless Claims have now fallen below 400,000 – a level that historically is associated with an improving job market – for five out of the last six weeks. And that wasn’t the only bit of good news the markets saw last week. Read on for details. Not only was last week’s Initial Jobless Claims reading of 366,000 the lowest level since May of 2008, there was a double dose of good news in the manufacturing sector, as both the Philadelphia Fed Index and the Empire State Index were both well above expectations. Normally, good economic news causes money to move out of Bonds and into Stocks as investors like to take advantage of gains…and this would typically hurt home loan rates, as they are tied to Mortgage Bonds.
 

However, the continued uncertainty out of Europe helped keep Bonds and home loan rates on an improving trend, as the US Dollar and US Bonds (including Mortgage Bonds, which home loan rates are based on) are benefiting from safe haven buying. Ultimately, Europe needs to provide a large financial backstop for their banks and sovereign debt in order to fix their problems longer-term. Until this happens, uncertainty should benefit the US Dollar and US Bonds, and keep home loan rates relatively low.

 

One factor that we can’t ignore, though, is inflation. Despite the Fed stating again last week that inflation is moderating, core consumer level inflation has continued to inch higher every month. Also, last week’s Producer Price Index showed that inflation at the wholesale level was slightly higher in November. Remember, inflation is the arch enemy of Bonds and home loan rates, because if inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher.

 

The bottom line is that while the uncertainty out of Europe should continue to help Bonds and home loan rates, both inflation and continued good economic reports here in the US could temper these improvements. With home loan rates still near historic lows, now remains a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

 
     

 

  Forecast for the Week  

 

     
  The Bond Markets will be closing early at 2:00 p.m. on Friday for the Christmas holiday, but the week will be busy before then.

  • Housing Starts and Building Permits (Tuesday), Existing Home Sales (Wednesday) and New Home Sales(Friday) for November will be reported.
  • Weekly Initial Jobless Claimswill be delivered on Thursday, and the Markets will be looking to see if the reading remains under 400,000.
  • Also on Thursday, we’ll see the Consumer Sentiment Index for December as well as the final reading on Third Quarter Gross Domestic Product(GDP) for 2011. The second reading came in at 2%, down from the first reading of 2.5%.
  • Finally, Friday the markets will see reports on Personal Income and Personal Spending along with the inflation indicator Core Personal Consumption Expenditure (PCE). Durable Goods will also be reported.

 

In addition to those reports, the National Association of Realtors (NAR) will announce downward revisions for Existing Home Sales over the past 5 years – and the revision is expected to be “meaningful.”

 

Finally, the Treasury Department will sell a whopping $99 Billion in 2-, 5- and 7-year Notes on Monday, Tuesday, and Wednesday.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

 

As you can see in the chart below, uncertainty out of Europe continues to help Bonds and home loan rates, though they are facing resistance. I’ll be watching this closely as we head into the new year.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Dec 16, 2011)

 

Japanese Candlestick Chart

 

 
     

 

  The Mortgage Market Guide View…  

 

     
      Give the Gift of Charity this Holiday Season!It’s a Snap with THE GOOD CARD® – a Gift Card for Charity  

Network for Good has a fresh angle on gifting this holiday season: The Good Card® – a gift card for charity – is perfect for everyone on your list. Good Cards have a stored value that can be redeemed as a donation to any of more than 1.2 million charities based in the US. Good Cards can be distributed via email or physical mail, or can be private labeled to meet your brand needs. Learn more at Network for Good.

 

A gift card for charity is an ideal reward for employees or thank you gift for customers and vendors that links their passion for a cause to your company’s brand. A new study by researchers from Harvard Business School, the University of British Columbia and the University of Liege that was recently highlighted in the Washington Post confirms that a bonus employees get to spend on others is more motivating than a bonus they get to spend on themselves. A Good Card recipient can redeem their gift card as a donation to any of more than a million nonprofits, an easy way for employees to share their personal rewards with others.

 

Good Card purchases, including fees, are tax-deductible to your company and are a creative way to spend funds earmarked for philanthropy. In addition, because Good Card purchases are charitable donations, they do not fall under the IRS gift limit or policies around corporate gifts with cash value. Network for Good’s charity gift card program is turn-key, customizable and easy to implement – even at the last minute. The program is recommended for any company looking to put a special spin on their gift-giving this year. What’s more, the person GIVING the gift (i.e., the card purchaser) gets the benefit of a tax advantage for charitable donations as well.

 

The Good Card is a creative and constructive way to honor partners and prospects, friends and neighbors during the holiday season and throughout the year. Visit Network for Good for more details.

 

Economic Calendar for the Week of December 19 – December 23

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. December 20
08:30
Housing Starts
Nov
NA
 
628K
Moderate
Tue. December 20
08:30
Building Permits
Nov
NA
 
653K
Moderate
Wed. December 21
10:00
Existing Home Sales
Nov
NA
 
4.97M
Moderate
Thu. December 22
08:30
Jobless Claims (Initial)
12/17
NA
 
NA
Moderate
Thu. December 22
08:30
Gross Domestic Product (GDP)
Q3
NA
 
2.0%
Moderate
Thu. December 22
08:30
GDP Chain Deflator
Q3
NA
 
2.5%
Moderate
Thu. December 22
10:00
Consumer Sentiment Index (UoM)
Dec
NA
 
67.7
Moderate
Fri. December 23
08:30
Durable Goods Orders
Nov
NA
 
-0.5%
Moderate
Fri. December 23
08:30
New Home Sales
Nov
NA
 
307K
Moderate
Fri. December 23
08:30
Personal Income
Nov
NA
 
0.4%
Moderate
Fri. December 23
08:30
Personal Spending
Nov
NA
 
0.1%
Moderate
Fri. December 23
08:30
Personal Consumption Expenditures and Core PCE
Nov
NA
 
0.1%
HIGH
Fri. December 23
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
 
1.7%
HIGH

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

 

Dec

15

In This Issue

 

     
  Last Week in Review:Good news on the economic report front, while the uncertainty continued out of Europe.Forecast for the Week: A full slate of economic reports is ahead, with news on inflation, manufacturing, retail sales, and more.

 

View: Still have some holiday shopping to do? Check out these three great ideas.

 

 
     

 

  Last Week in Review 

 

     
  They say that no news is good news. And while that may be true, last week two economic reports were good news. Read on to learn what happened…and how home loan rates were impacted. Last Thursday, Initial Jobless Claims come in at 381,000. Not only was this lower than expectations, the number was a nine-month low, signaling that the labor market is slowly improving. Then on Friday, Consumer Sentiment reached a six-month high, rising above expectations to 67.7. These aren’t the only economic reports here in the US that have improved in recent weeks, which gives us reason for some optimism when it comes to our economy. But how the Eurodrama plays out may determine which way the fragile US economy goes next.

And it was a big week in Europe, with the European Central Bank (ECB) holding a policy meeting on Thursday and the two-day European Union Summit on Thursday and Friday. Before the Summit even began, rating firm Standard & Poor’s put 15 of the 17-nation Euro currency bloc on a downgrade review, citing “continuing disagreements among European policy makers on how to tackle” the Euro debt crisis.

 

So what were the results of the EU Summit? Leaders agreed to a new, tighter “fiscal integration” across the Eurozone. This means that a new treaty will be drafted, setting guidelines such as annual budget deficits being limited to three percent, and failure to meet guidelines like these would automatically spark disciplinary procedures. As expected, Germany was the winner in this negotiation as they demanded a tighter fiscal union in lieu of firing up the printing press and buying troubled sovereign debt.

 

So what does all of this mean for home loan rates here in the US? It’s important to remember that when our economy is struggling and economic reports are less favorable, our Bond Market usually benefits as investors seek a safe haven for their money. And since home loan rates are tied to Mortgage Bonds, our home loan rates are sometimes at their best when our economy is struggling. In a way it makes sense…in times of economic struggle, good home loan rates can help kick start our economy in other areas.

 

Though our economic reports have been improving of late, our Bond markets – and therefore home loan rates – have continued to benefit from the uncertainty in Europe, as investors have been staying put in the relative safe haven of US Bonds. That’s why now remains a great time to purchase or refinance a home, with home loan rates still near historic lows. Let me know if I can answer any questions at all for you or your clients.

 

 
     

 

  Forecast for the Week 

 

     
  This week’s calendar is packed full of data that will impact the capital markets as 2011 winds down.

  • The Retail Salesreport for November will give the markets some insight as to how the holiday shopping season is treating retailers when it is reported on Tuesday.
  • Weekly Initial Jobless Claimswill be delivered on Thursday and the markets will be looking to see if the number remains near last week’s nine-month low.
  • Inflation will be reported on the wholesale level in the form of the Producer Price Index (PPI), which will be released on Thursday. That report will be followed by the Consumer Price Index (CPI) on Friday. Inflation has remained relatively low in the past year and the Federal Reserve feels that it will remain stable in the longer-term.
  • Manufacturing reports from the Empire State Index and the Philadelphia Fed Index will also garner attention when reported on Thursday.

 

In addition to those reports, the Fed will hold its FOMC meeting on Tuesday – and it’s the last meeting for 2011. No change is expected to the benchmark Fed Funds Rate.

 

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

 

As you can see in the chart below, Bonds and home loan rates continued to benefit from the uncertainty out of Europe. I will be monitoring this story in the weeks ahead.

 

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Dec 09, 2011)

 

Japanese Candlestick Chart

 

 
     

 

  The Mortgage Market Guide View… 

 

      3 Easy Gift IdeasShopping for the people who are close to you isn’t very difficult. But shopping for a business associate, a party host or hostess, or your boss can be more difficult. In those cases the following gift ideas can help.The Gift in a Basket. While they may seem passé, gift baskets are the ultimate in unique gifts. One reason is that a gift basket can include almost anything. The trick to making it great as well as unique is to find out the recipient’s favorite hobby – whether it’s golf, cooking, jogging or whatever. Give the basket a personalized theme by filling it with a variety of inexpensive items relating to the hobby.

 

The Gift of Greenery. While freshly cut flowers make for a very nice host or hostess gift, potted plants can be even better. Every time the recipients look at their plant, they will most likely think of you.

 

The Gift of Relaxation. We all work hard. That’s why the gift of relaxation is so appreciated. And a prepaid massage is a great way to go. Beneficiaries of this gift can experience incredible relaxation, while also allowing their overworked muscles to receive a little TLC. Better still, this gift works for both men and women. And, it can fit into almost any budget – depending on whether you want to purchase a massage for a half hour or an hour.

 

Happy holidays to you and yours this season. And remember to give yourself a gift by spending time with the ones you love.

 

Economic Calendar for the Week of December 12 – December 16

 

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. December 13
08:30
Retail Sales
Nov
NA
 
0.5%
HIGH
Tue. December 13
08:30
Retail Sales ex-auto
Nov
NA
 
0.6%
HIGH
Tue. December 13
02:15
FOMC Meeting
Dec
NA
 
.25%
HIGH
Thu. December 15
10:00
Philadelphia Fed Index
Dec
NA
 
3.60
HIGH
Thu. December 15
09:15
Capacity Utilization
Nov
NA
 
77.8%
Moderate
Thu. December 15
09:15
Industrial Production
Nov
NA
 
0.7%
Moderate
Thu. December 15
08:30
Empire State Index
Dec
NA
 
0.61
Moderate
Thu. December 15
08:30
Core Producer Price Index (PPI)
Nov
NA
 
0.0%
Moderate
Thu. December 15
08:30
Producer Price Index (PPI)
Nov
NA
 
-0.3%
Moderate
Thu. December 15
08:30
Jobless Claims (Initial)
12/10
NA
 
NA
Moderate
Fri. December 16
08:30
Consumer Price Index (CPI)
Nov
NA
 
-0.1%
HIGH
Fri. December 16
08:30
Core Consumer Price Index (CPI)
Nov
NA
 
0.1%
HIGH

 

 

 
 
The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.
As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.
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.
 

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Dec

5

 

In This Issue

 

 

 

Last Week in Review: Big Jobs news was reported, plus the uncertainty out of Europe continued.

Forecast for the Week: The economic calendar is light, which means news out of Europe could make it a volatile week in our markets.

View: There’s a great holiday gift that doesn’t cost a dime. Check out the details below.

 

Last Week in Review

 

 

 

It’s been said that “slow and steady wins the race.” And when it comes to the Jobs Report for November, it seems that the labor market continues to improve at a gradual pace. Read on for the details…and what they mean for home loan rates.

There was good news, as the headline number for job creations in November came in at 120,000, with 140,000 private jobs offsetting government losses. What’s more, some upward revisions to the two previous readings added 72,000 more jobs than had been reported.

Perhaps even more important, Hourly Earnings grew by just 0.1% – a number that suggests no threat of wage-based inflation. Remember, inflation is the arch enemy of Bonds and home loan rates because when inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher. So the Hourly Earnings number was good news for Bonds and home loan rates.

Catching the markets by surprise was a rather sharp decline in the unemployment rate to 8.6%, the lowest unemployment rate we’ve since March of 2009. While this is good news on the one hand, part of the decline stems from the fact that 315,000 people were removed from the workforce because they totally gave up looking for work. And with 13.3 million Americans still out of work, more improvement is certainly needed here.

Similarly, the labor participation rate (which is currently hovering at a 30-year low at 64) needs to move above 66 or it will be difficult for the economy to grow fast enough to lower our budget deficit. In fact, last week Bond ratings firm Fitch issued a stern warning to the US, saying that our AAA rating will be in jeopardy if we don’t soon do something to rein in our own ever-growing budget deficit.

It is good news that we’re seeing some slow and steady improvement in the labor market…and coupling this with other recent positive economic signals, means we are not near a recession at the moment. But our economic health remains fragile, and any external shock from Europe could easily disrupt the economic improvement we are seeing.

The bottom line is that the uncertainty out of Europe – and the prospect of additional Mortgage Bond buying (QE3) from the Fed – should continue to support Bonds and home loan rates as they will benefit from investors looking for a safe haven for their money. However, it is also unlikely that Bonds and home loan rates will improve much further. Inflation, while not yet a problem, is still elevated…and if it continues to creep higher, this will limit any improvement home loan rates may see. With home loan rates still near historic lows, now remains a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

 

Forecast for the Week

 

 

 

In the absence of data and with earnings season over, Stocks and Bonds will battle over investing dollars and trade off the geo-political headlines out of Europe.

  • The ISM Services Index will be reported on Monday. This report gives investors a gauge as to how the service sector is holding up in this economy. Individuals employed in this sector produce services rather than products. Service sector jobs provide a significant number of jobs in the US – including housekeeping, messenger services, tax preparation, nursing and teaching.
  • Weekly Initial Jobless Claims will be delivered on Thursday. This week’s report comes after last week’s report showed that claims rose above the 400,000 level for the first time in four weeks.
  • Consumer Sentiment will be delivered on Friday to cap off the week.

In addition to that news, here’s something to keep an eye on in the weeks ahead. Stocks may be set for another jump. That’s because of something that’s become known as the “Santa Claus Rally.” The Santa Claus Rally is usually a surge in Stocks in the week between Christmas and New Years.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and home loan rates are being supported by rumors of QE3 and the continued certainty out of Europe. I will continue to watch these developments in the weeks ahead.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Dec 02, 2011)

 

 

The Mortgage Market Guide View…

 

 

 

Holiday Spending Without an Extra Cent

Time is a precious commodity, but it’s even more treasured because it is fleeting. As soon as a day, an hour, or even a minute passes, it is gone forever.

While that might be stating the obvious, it’s an important concept to reflect on during the often-hectic holiday season. So this holiday season – regardless of which holiday you celebrate or if you celebrate any – remember to focus on and spend time with the people around you, including family, friends, and even coworkers or clients.

When TV personality and kid expert Art Linkletter was asked about the idea of spending time with loved ones this is what he said:

“I once asked a five-year-old what he would take with him if he were going to Heaven. He replied, ‘I would take my parents because I think that up there they would have more time with me’… nuff said.”

The good news is, it’s actually possible to slow time down in a way that seems to lengthen special events like a day of fishing with your child or a special dinner with a good friend. The key is to consciously honor the person and the event as you experience it. To be in the moment.

In the days and weeks ahead, remember to recognize the people you care about. You don’t need to do or say anything specific, nor do you need to spend any money. You simply need to spend time with them. So consider setting aside two hours one day for coffee with a friend. Or if you have children, make special plans to take each one out individually for their own dinner. You can even set aside a short amount of time each day to call some of your special clients to see how they’re doing and personally wish them a happy holiday. And when you do, avoid distractions like technology or worries about what else you need to do that day.

After all, once the moment passes, you can go back to that checklist of things to do. But you can never go back to that moment in time.

Economic Calendar for the Week of December 05 – December 09

Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Mon. December 05

10:00

ISM Services Index

Nov

53.4

 

52.9

Moderate

Thu. December 08

08:30

Jobless Claims (Initial)

12/3

395K

 

402K

Moderate

Fri. December 09

10:00

Consumer Sentiment Index (UoM)

Dec

65.0

 

64.1

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.

 

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

 

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: curtis@kcmortgageplanner.com

 

If you prefer to send your removal request by mail the address is:

 

 

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, 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.

 

          

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Nov

28

 

  Wishing You the Best  

 

 
 

 

     
  I hope you enjoyed a wonderful Thanksgiving weekend with friends and family. I know that I certainly have much to be thankful for, including many wonderful clients and friends like you.In addition, I sincerely hope you’ve been enjoying your complimentary subscription to the Mortgage Market Guide Weekly. Your next full issue will arrive “hot off the press” next week. In the meantime, please enjoy the holiday article below.The Mortgage Market Guide Weekly is the industry’s leading publication of this type, and I’m pleased to provide this valuable resource to you. If you feel that any of your clients, friends, family members or associates would benefit from keeping up-to-date on market and economic trends with this easy-to-read format, please let me know, and I will be happy to add them free of charge.

Best wishes to you.

 

 

  The Mortgage Market Guide View…  

 

 
 

 

     
     
     
  Here’s How to Start the Holiday SeasonThis time of year is all about reflection. Taking the time to consider the blessings in our lives – from family and friends to education and opportunity. But it’s also a time to renew our spirits and souls, especially as we head into the holiday season and a new year. To help you make the upcoming holiday season feel a little less hectic and more reflective, consider dedicating specific times of the day or week to family activities that focus on the blessings of the season.The website Kaboose.com can help. It offers a wide variety of word searches, crossword puzzles, mazes, coloring pages and more that you can download and print for free. Better still, those activities are available in different levels of toughness and subjects, so you can find the right activity for your family. Use the links below to start finding holiday activities that help you celebrate the meanings behind the holidays:

  • Chanukah – Download and Print Activities
  • Christmas – Download and Print Activities
  • Kwanzaa – Download and Print Activities
  • New Year’s – Download and Print Coloring Pages

Here’s to wishing you and yours the very best as we head into the beautiful holiday season. If you have any questions or if there’s anything I can do for you or someone you know, please just call or email. I’m always happy to help in any way I can.

Economic Calendar for the Week of November 28 – December 02

Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Mon. November 28

10:00

New Home Sales

Oct

325K

 

313K

Moderate

Tue. November 29

10:00

Consumer Confidence

Nov

45.5

 

39.8

Moderate

Wed. November 30

08:15

ADP National Employment Report

Nov

NA

 

110K

HIGH

Wed. November 30

08:30

Productivity

Q3

2.6%

 

3.1%

Moderate

Wed. November 30

09:45

Chicago PMI

Nov

58.0

 

58.4

HIGH

Wed. November 30

10:00

Pending Home Sales

Sept

NA

 

-4.60%

Moderate

Wed. November 30

02:00

Beige Book

Nov

NA

 

NA

Moderate

Thu. December 01

08:30

Jobless Claims (Initial)

11/26

NA

 

NA

Moderate

Thu. December 01

10:00

ISM Index

Nov

52.0%

 

50.8

HIGH

Fri. December 02

08:30

Non-farm Payrolls

Nov

110K

 

80K

HIGH

Fri. December 02

08:30

Unemployment Rate

Nov

9.0%

 

9.0%

HIGH

Fri. December 02

08:30

Hourly Earnings

Nov

0.2%

 

0.2%

HIGH

Fri. December 02

08:30

Average Work Week

Nov

NA

 

34.3

HIGH

 
     

 

 

 

  The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, there is no guarantee it is without errors.

 

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

 

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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Oct

27

Click Here for My Featured Chart.

Curtis Schartz, Certified Mortgage Planner, Pulaski Bank HARP Refinance, Lees Summit, Overland Park, Kansas City, Leawood, Lenexa, Olathe, Shawnee, Liberty

Oct

25

In This Issue

  

 

 

Last Week in Review:The Fed made headlines, plus inflation is heating up!Forecast for the Week: Some key reports on housing, plus the Fed’s favorite gauge of inflation and news from Europe could move the markets.

View: Ever feel like you ramble when you leave voicemails? Check out these tips for surefire ways to leave effective messages.

 

Last Week in Review

 

 

 

When the Fed talks, people listen.And last week, the Fed made headlines when Fed Governor Daniel Tarullo called for the Fed to engage in another round of Mortgage Bond purchases…or in other words, another round of Quantitative Easing (QE3). Read on to find out what this could mean for the housing market and home loan rates.In order to really have an impact on housing, the Fed would have to announce something significant to get people to buy a home. Why? Because even now, with rates at historically low levels and incredible affordability levels, the sales pace in housing is tepid, due to structural problems in the labor market, which the Fed can’t fix. 

In fact, there is a lot to consider before the Fed starts expanding their balance sheet, and the biggest concern is rising inflation. Contrary to what the Fed has said about it moderating, year-over-year inflation is on the rise. The headline Producer Price Index (PPI) rose by a whopping 0.8% in the month of September, elevating year-over-year wholesale prices by a hot 6.9%. Meanwhile, the Consumer Price Index (CPI) for September rose by 0.3%, and while this was inline with estimates it pushed the year-over-year number to 3.9%. This is significant because the year-over-year figure was just 1.6% in January.

Remember, inflation is the arch enemy of Bonds and home loan rates. The concept is very simple: If inflation rises, investors in Bonds demand a higher yield to offset the lost buying power inflation imposes on a fixed payment. And as home loan rates are tied to Mortgage Bonds, this would mean home loan rates move higher.

And let’s not forget the ongoing drama out of Europe. French and German leaders will hold two summits in the span of four days to come up with a resolution to the European debt crisis. Whichever way this news goes could have a real effect on the markets, including Bonds and home loan rates. 

With all the news to come this week, it’s still important to remember that now remains a great time to purchase or refinance a home, as home loan rates are still near historic lows. Let me know if I can answer any questions at all for you or your clients.

 

Forecast for the Week

 

 

 

Look for some key reports on the housing market, which come after last week’s better-than-expected Housing Starts and the softer numbers from Existing Home Sales.

  • New Home Sales are set to be delivered on Wednesday. That number has been hovering near record lows, so the markets will be anxious to see if there’s any indication of an improvement. Also this week, Pending Home Sales will be released Thursday.
  • Also on Thursday, Initial Jobless Claims will be released as usual. Plus, the first reading on Gross Domestic Product (GDP) for the 3rd quarter will be released. Overall, the estimates don’t appear as if the economy is hitting on all cylinders yet.
  • The markets will see how the American people are holding up in this economy with Consumer Confidence and Consumer Sentiment on Tuesday and Friday, respectively. 
  • Ending the week, Friday’s Core Personal Consumption Expenditure (PCE), the Fed’s favored inflation measure, is sure to garner some attention.

In addition to those reports, keep an eye on the news. One story that could gain some attention is news that the Federal Housing Finance Agency (FHFA) and the Obama administration will submit proposals to Congress to help the housing market for those homeowners who are underwater.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and home loan rates stayed in a tight range last week. I’ll be watching closely to see how the markets react to Fed Governor Tarullo’s call for QE3, the news out of Europe, and the economic reports of the week.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 21, 2011)

 

 

The Mortgage Market Guide View…

 

 

 

Don’t Say Another Word!5 Secrets to Leaving More Effective Voice Messages

People are busy. That means, even with the wide variety of technical products developed to keep us in touch, it’s sometimes hard to get a hold of people. In those instances, we find ourselves transported back to the tried-and-true technology of the 1980s—that is, leaving a message after the beep.

Same Old, Same Old

While the technology has changed from tapes to megabytes, the basic concept of a voice message remains the same. You talk; it records; people listen.

Sadly, that’s not the only thing that’s the same. Many people still don’t know how to leave a message that provides information but also establishes a compelling reason for the listener to call back.

Use These Tips Today!

The following tips can help you be more effective and get better results with voice messages:

1. Don’t Talk So Much. You have a limited window to make your point. That means you can’t provide a lot of background information or cover multiple topics.

Before you call, make sure you have a singular focus to mention if you get the person’s voicemail. Then, highlight that important point, and leave the rest of your points for the actual follow-up discussion.

2. Focus on a Problem. To put it bluntly: People don’t want to hear about you; they want to hear about themselves.

So before you call, make sure you’ve thought about the person on the other end—including what she cares about, what she spends her time on, as well as what she wishes she could spend her time on instead. You could even try to imagine why she was busy and couldn’t answer the phone. Or imagine where she’s about to rush off to as soon as your message ends.

Based on those ideas, craft a simple, focused message that hits on ONE major problem or issue that the listener has.

3. Everyone Likes a Good Mystery. Once you’ve focused on a single overriding problem, resist the temptation to go into your sales pitch about solving it. For one thing, the listener probably doesn’t have time (or want) to listen to your pitch. For another, if you give your pitch, what reason do they have to call you back?

Instead, only allude to the idea that a solution does exist…but don’t go into detail. Leave some mystery. That’s your hook for getting them to actually call you back…because now they actually have a reason to!

Finally, state a number the person can reach you at and say you’d like to tell/give them some information by chatting for a couple of minutes. You can even give them a time frame (such as saying they can call you back by a certain day or time) to help create a sense of urgency about solving the mystery you’ve established in your message.

4. Energy and Enthusiasm. Nobody wants to listen to a person who’s boring or sounds bored.

The same is true with voice messages. After all, if you don’t have energy when talking about something, why should the listener have the energy to call you back?

So before you call, take a second to raise your energy level. Some experts recommend standing up when making a call or smiling while talking on the phone, as a way to subtly convey a pleasant, energetic tone.

5. Phone Home. It’s not enough to practice in your head. It’s not even enough to practice out loud. You need to actually leave some practice messages.

So here’s what you do: call your home phone and leave some test messages. You can even try a few different approaches. When you get home, take notes about what worked and what you want to improve. Then, try the same process the next day or even every couple of months to make sure you’re still effective.

Remember: If you don’t want to listen to yourself or don’t feel compelled to call back, then why would anyone else?

By following these tips and constantly working to improve your voice message skills, you can help increase your productivity and the number of responses you receive.

Economic Calendar for the Week of October 24 – October 28

Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Tue. October 25

10:00

Consumer Confidence

Oct

46.0

 

45.4

Moderate

Wed. October 26

08:30

Durable Goods Orders

Sept

-1.0%

 

-0.1%

Moderate

Wed. October 26

10:00

New Home Sales

Sept

300K

 

295K

Moderate

Thu. October 27

08:30

Pending Home Sales

Aug

-1.0%

 

-1.2%

Moderate

Thu. October 27

08:30

GDP Chain Deflator

Q3

2.5%

 

2.5%

Moderate

Thu. October 27

08:30

Gross Domestic Product (GDP)

Q3

2.2%

 

1.3%

Moderate

Thu. October 27

08:30

Jobless Claims (Initial)

10/22

403K

 

403K

Moderate

Fri. October 28

08:30

Personal Income

Sept

0.3%

 

-0.1%

Moderate

Fri. October 28

08:30

Personal Spending

Sept

0.6%

 

0.2%

Moderate

Fri. October 28

08:30

Personal Consumption Expenditures and Core PCE

Sept

0.1%

 

0.1%

HIGH

Fri. October 28

08:30

Personal Consumption Expenditures and Core PCE

YOY

NA

 

1.6%

HIGH

Fri. October 28

08:30

Employment Cost Index (ECI)

Q3

0.6%

 

0.7%

HIGH

Fri. October 28

10:00

Consumer Sentiment Index (UoM)

Oct

57.5

 

57.5

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. 

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: curtis@kcmortgageplanner.com 

If you prefer to send your removal request by mail the address is:

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, 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.

 

          

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee, HARP

Oct

25

Click Here for My Featured Chart.

 

Curtis Schartz, Certified Mortgage Planner, Pulaski Bank HARP Refinance, Lees Summit, Overland Park, Kansas City, Leawood, Lenexa, Olathe, Shawnee, Liberty

Oct

25

FHFA mortgage refi boost expected to be modest.

 

Curtis Schartz, Certified Mortgage Planner, Pulaski Bank HARP Refinance, Lees Summit, Overland Park, Kansas City, Leawood, Lenexa, Olathe, Shawnee, Liberty

Oct

18

 

In This Issue

 

 

 

Last Week in Review:Good news at home and abroad impacted the markets and home loan rates last week. Find out how.Forecast for the Week: Earnings season is in full swing, plus look for big news on manufacturing, housing, and inflation.

View: Wondering about the outlook for the housing and mortgage markets in 2012? Be sure to read the article below.

 

Last Week in Review

 

 

 

“It’s a small world after all.”And that proved especially true last week, as our markets were impacted by news at home and news from overseas. Here are the highlights.First, there was some good news on the economic front in the U.S. as Retail Sales for September rose by 1.1%, above the 0.6% expected and the highest increase in seven months. Remember good economic news typically benefits Stocks at the expense of Bonds (including Mortgage Bonds, to which home loan rates are tied), as investors move their money from the safety of Bonds into Stocks to try and take advantage of gains.

And good news here wasn’t the only thing that pressured Bonds and home loan rates last week. The European Central Bank (ECB) said they will announce a plan by early November for addressing the Greek debt crisis and make recapitalizing their banks a priority. As part of this plan, the International Monetary Fund is going to dedicate more resources to help the European debt crisis. A lot of money is needed to make investors feel confident that the debt crisis will be contained, so investors saw this as positive news.

So what does this mean for Bonds and home loan rates? Should the overall present optimistic tone continue, Bonds and home loan rates could face additional pressure. However, if there is pessimistic or uncertain news, investors may return to the safe haven of Bonds, meaning home loan rates could benefit. We did see a little of this trend last week when there was word that China’s exports came in lower than expectations, which brought concern that global growth could continue to slow.
Either way, the volatility is sure to continue so the most important thing to remember is that now is still a great time to purchase or refinance a home, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.

 

Forecast for the Week

 

 

 

Manufacturing, inflation, and housing reports dominate the news this week:

  • The manufacturing sector accounts for one-quarter of the economy, so it’s especially important during the current economic situation. This week, the New York State Empire Manufacturing Index as well as Industrial Production and Capacity Utilization will be released on Monday. Later in the week, the Philadelphia Fed Index will be reported on Thursday.
  • Inflation news from the Producer Price Index (PPI) and the Consumer Price Index (CPI) will be delivered on Tuesday and Wednesday respectively. The last report on consumer inflation was a bit hotter than expected, so Bond market players will be closely watching those reports.  
  • Housing Starts will be reported on Wednesday and on Thursday Existing Home Sales will be delivered. 
  • The weekly Initial Jobless Claims report will be released on Thursday. As of last week’s report, they continue to remain above the 400,000 level.   

Plus, earnings season is in full swing this week. Some big names reporting earnings are Citigroup, Bank of America, Coca-Cola, Apple, and AT&T. If the reports come in better than expected, it could push investing dollars over to the Equity markets.  

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds and home loan rates faced pressure last week but remained above a key technical level. I’ll be watching the markets closely this week to see what happens.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 14, 2011)

 

 

 

The Mortgage Market Guide View…

 

 

 

The Housing and Mortgage Markets in 2012Last week, the Mortgage Bankers Association (MBA) released its outlook for the housing and mortgage markets in 2012. Overall, the news is mixed, but there’s some good news to glean out of it. Here are three positive elements in the MBA forecast that you should know about:

1. Home Sales Steady Before Slight Increase

The MBA expects total existing home sales will stay around the 4.9 million unit pace for 2011 and 2012. But in 2013, the MBA expects home sales to increase slightly to 5.2 million units, as the broader economy recovers.

New home sales are expected to be similar to the overall trend. As the MBA stated in its release: “The recovery in the new home sales will have a comparably slow start…but will show some meaningful increases in 2013.”

2. Slight Growth in Home Purchases

Despite an expected decrease in refinances, the MBA forecasts some slight growth in the number of mortgages for home purchases. Specifically, the MBA anticipates home loans for purchases to increase to $412 Billion in 2012, which would be up from the anticipated 2011 total of $400 Billion.

Better still, the MBA expects home loans for purchases to jump significantly to $700 Billion in 2013 as the economy, home sales, and home prices are all anticipated to pick up. 

3. Rates to Remain Low

Overall, fixed home loan rates are expected to remain low by historical standards. The MBA expects rates to end 2011 around a 4.5 percent average, and then possibly dropping slightly to 4.4 percent at some point in 2012. But by 2013, the MBA expects rates to climb back up to 4.9 percent – which is still low by historical standards but does indicate a change in direction.

As always, forecasts can change based on numerous factors not just in the U.S., but also in the global markets. And while the MBA forecast does contain some negative aspects for the markets, it does hold some slightly positive aspects as well.

Economic Calendar for the Week of October 17 – October 21

Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Mon. October 17

08:30

Empire State Index

Oct

NA

 

-8.82

Moderate

Mon. October 17

09:15

Industrial Production

Sept

NA

 

0.2%

Moderate

Mon. October 17

09:15

Capacity Utilization

Sept

NA

 

77.4%

Moderate

Tue. October 18

08:30

Producer Price Index (PPI)

Sept

NA

 

0.0%

Moderate

Tue. October 18

08:30

Core Producer Price Index (PPI)

Sept

NA

 

0.1%

Moderate

Wed. October 19

02:00

Beige Book

 

 

 

 

Moderate

Wed. October 19

08:30

Building Permits

Sept

NA

 

620K

Moderate

Wed. October 19

08:30

Housing Starts

Sept

NA

 

571K

Moderate

Wed. October 19

08:30

Core Consumer Price Index (CPI)

Sept

NA

 

0.2%

HIGH

Wed. October 19

08:30

Consumer Price Index (CPI)

Sept

NA

 

0.4%

HIGH

Thu. October 20

08:30

Jobless Claims (Initial)

10/15

NA

 

NA

Moderate

Thu. October 20

10:00

Existing Home Sales

Sept

NA

 

5.03M

Moderate

Thu. October 20

10:00

Philadelphia Fed Index

Oct

NA

 

-17.5

HIGH

Thu. October 20

10:00

Index of Leading Econ Ind (LEI)

Sept

NA

 

0.3%

Low

 

 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.

 

As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

 

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: curtis@kcmortgageplanner.com

 

If you prefer to send your removal request by mail the address is:

 

 

 

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, 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.

 

          

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Sep

27

 

In This Issue
Last Week in Review:The Fed met, and inserted a “twist” into things.Forecast for the Week: A full week of economic reports is ahead, including news on inflation, the state of the economy, consumer confidence, and more.

View: No one wants to get a bad rap, especially online. Check out Part 2 of our series on improving your online persona.

Last Week in Review
“Twist and shout.”The Fed inserted a “twist” into the market last week, but only time will tell if their decision will be cause for shouting. Read on to learn what the Fed did, and what this could mean for home loan rates. The week began with speculation that the Fed would announce “Operation Twist” after its two-day meeting of the Federal Open Market Committee. What is Operation Twist? Essentially, Operation Twist is where the Fed sells its holdings of short-term securities and Notes and then purchases longer-term Notes and Bonds in order to try and lower longer-term rates even further.

And Operation Twist is exactly what the Fed announced, but their announcement came with some key surprises:

  • First, the Fed’s statement was more strongly worded than expected, as the Fed said that there remains “significant” risks to the downside for the US economy.
  • Second, the funding for Operation Twist was larger than expected, coming in at $400 Billion.
  • Third, the Fed said they will reinvest principal payments on their current holdings of agency debt back into Mortgage Backed Securities…which led to a huge rally in the Bond Market Wednesday, while Stocks took a nose dive. 

So what does all of this mean for home loan rates? The Fed’s statement has heightened pessimism, fear, and concern…and normally those sentiments help Bonds (including Mortgage Bonds, to which home loan rates are tied) improve as investors seek a safe haven for their money. But it’s important to understand that even if Bonds improve, home loan rates may not improve much further.

Why? It is basic supply and demand: lenders’ pipelines have been overflowing with people wanting to refinance or purchase a home and take advantage of the historically low rates we’ve seen. This level of volume flowing into the system has already created a backlog of work for lenders, which means they may not pass along all the gains we are seeing in the Bond Market onto their rate sheets.

The bottom line is that home loan rates remain near historic lows, and now is a great time to purchase or refinance a home. Let me know if I can answer any questions at all for you or your clients.

Forecast for the Week

 

Economic data will impact trading throughout the week by giving investors a broad look at the economy:

  • Housing will be first up with New Home Sales on Monday.  Last week’s housing data was mixed with lower than expected Housing Starts but Existing Home Sales came in on the positive side. Pending Saleswill also be reported on Thursday.  
  • The week will also give us a read on how consumers are feeling in this weakening economy. Consumer Confidence will be released on Tuesday and Consumer Sentimentwill be delivered on Friday.
  • Weekly Initial Joblessclaims will also be closely watched on Thursday. The job markets continue to be a drag on the economy as each week over 400,000 people are claiming unemployment benefits.
  • The big news this week will be the government’s report on Gross Domestic Product (GDP), which will be released Thursday. With the economy slowing, GDP will be on the radar screen for signs of recessionary numbers. Also important will be Wednesday’s Durable Goods Orders, which gives us an update on consumer and business buying behavior on big-ticket items.
  • Investors will also be closely watching the inflation figures within the Core Personal Consumption Expenditure, which is the Fed’s favorite gauge of inflation and will be reported on Friday.       

In addition to those reports, investors will be closely watching the movements in the Stock Market after last week’s plunge. The big questions will be: How low can Stocks go? And, are we in a bear market or just a correction phase?

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds rallied last week, though they did give back some of their gains on Friday. I’ll be watching both Stocks and Bonds closely this week to see which way the markets move.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Sep 23, 2011)
Japanese Candlestick Chart
The Mortgage Market Guide View…
What Does the Internet Say About You?Part 2: Simple Steps to Improve Your Online Persona

Your online persona is a lot like a credit score. It’s already out there whether you check it or not. And other people can review it at any time.

The similarities don’t end there. Like a credit score, you can review your online persona and work to improve it…so when people like potential clients look at it, they’ll see what you want them to see.

Step One: Evaluate Your Online Persona

In order to know what your online persona looks like, you have to actually check it. So start by opening your web browser to a search website such as Google.com, Yahoo.com, Ask.com, AltaVista.com, Lycos.com, or Microsoft’s new Bing.com. Then simply type in your name and hit search. Scan through the first two or three pages to see what items are coming up most often, and make note of any negative news that you’d like to get removed.

You can also do more specific searches. For example, you can type your name in parentheses along with your email address, the name of your college, your job title, a hobby, or even other people’s names. For example, you could type “your name + friend’s name” or “your name + college name.” You may be surprised what you find with some of these specific searches.

Once you’ve searched your name on one site, open another and do the same thing. You’ll probably find a number of similarities, so you only need to check a few different sites to get an idea of what the Internet says about you. Remember to take specific notes about false or unflattering information. You’ll want to write down what it is, where it appears, and why it shouldn’t be there.

Finally, don’t forget to search for videos and images! After all, one of your friends may have posted photos and tagged you in the photo without you realizing it. You can use some of the same sites listed above—only this time, click the video or image search button before you search for your name.

Step Two: Remove Anything Negative

Like your credit score, if you find information on the Internet that is inaccurate or inappropriate, your first step should be to try to get it removed. This is where those diligent notes from step one will come in handy.

First, if you found something unflattering that you actually posted in the past, remove it yourself. For example, if you posted pictures or stories on an old blog, go back and remove them. In addition, take the time to go through any websites or social networking sites where you control the information. Maybe you have a blog, website, or social networking site that features pictures and text that you post. Go back through the information to make sure you still want people to see or read it. If not, remove it immediately…even if it didn’t show up in the search you conducted.

Second, if you found information on other websites that you think should be removed, contact them right away. Start with the websites that have the worst (most egregious or most inaccurate) information. Using a polite but firm tone, explain what content you found on their site, why it’s a problem, and then specifically ask them to remove that information from their site. Be as specific as possible. If the information is false, say that. If the information is private and used without permission, say that. You may even want to include a link to the material to make sure they can quickly find the problematic information that you’re asking them to remove.

It’s a Marathon…Not a Sprint

Remember, the Internet has a long memory. So it may take some time for those negative elements to stop showing up in searches. But by removing them, you can help make sure that even if they do show up in a search, people won’t be able to actually view the detailed information when they try to click the link.

When you combine the steps above with the process of adding new more professional content to your website, blog or social media sites, you’ll be able to continually improve your online persona!

Economic Calendar for the Week of September 26 – September 30

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. September 26
10:00
New Home Sales
Aug
293K
295K
302K
Moderate
Tue. September 27
10:00
Consumer Confidence
Sept
46.7
 
44.5
Moderate
Wed. September 28
08:30
Durable Goods Orders
Aug
0.0%
 
4.1%
Moderate
Thu. September 29
08:30
Jobless Claims (Initial)
9/24
420K
 
423K
Moderate
Thu. September 29
08:30
Gross Domestic Product (GDP)
Q2
1.2%
 
1.0%
Moderate
Thu. September 29
08:30
GDP Chain Deflator
Q2
2.4%
 
2.4%
Moderate
Thu. September 29
10:00
Pending Home Sales
Jul
-1.3%
 
-1.3%
Moderate
Fri. September 30
08:30
Personal Income
Aug
0.0%
 
0.3%
Moderate
Fri. September 30
08:30
Personal Spending
Aug
0.2%
 
0.8%
Moderate
Fri. September 30
08:30
Personal Consumption Expenditures and Core PCE
Aug
0.2%
 
0.2%
HIGH
Fri. September 30
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
 
1.6%
HIGH
Fri. September 30
09:45
Chicago PMI
Sept
54.0
 
56.5
HIGH
Fri. September 30
10:00
Consumer Sentiment Index (UoM)
Sept
57.6
 
57.8
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.

 

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Sep

15

August Core CPI (Consumer Price Index) rises to 2.0%. This increase represents the upper-end of the Fed’s threshold. The Consumer Price Index measures changes in the price level of consumer goods and services and provides a hugely important read on consumer inflation. Inflationary signs, as seen here, could put a dent in Bond prices

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Sep

7

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Aug

29

In This Issue…

 

Last Week in Review : The Fed remains optimistic but vague, despite concerns and anticipation in the markets!

Forecast for the Week : Watch out for the big topics of housing, inflation and employment

View : Increase your intelligence and stay mentally active with these 3 tips!

 

Last Week in Review

 

I’m goin’ to Jackson. See if I care .” – Johnny Cash. Last week, Fed Chair Ben Bernanke headed to Jackson Hole, Wyoming…and the markets certainly cared! The big news of the week was Bernanke’s speech at the Federal Reserve Bank of Kansas City Economic Symposium at Jackson Hole. Here’s what happened – and, more importantly, what it means to Bonds and home loan rates.

Bernanke Remains Optimistic. Bernanke focused on the near-term and long-term economic situation, but his message was optimistic, stating that regardless of “the crisis and the recession, the U.S. economy remains the largest in the world.” He stated that the Fed expects “a moderate recovery” to continue and even strengthen as the country goes forward.

Easy on the talk of “Easing.” Despite the market’s concerns over the slowing economic recovery, Bernanke didn’t discuss any details about the measures that the Fed may use to help get the recovery back on track – which means there was no mention of a third round of Quantitative Easing (QE3). Instead, he stated that the Fed would continue to consider such options at its upcoming September meeting. He did, however, re-iterate that “The Fed has a range of tools that could be used to provide additional monetary stimulus.” Additionally, he ended his speech by saying: “The Federal Reserve will certainly do all that it can to help restore high rates of growth and employment in a context of price stability.”

Right back where we started. It’s interesting to note that last year when Bernanke spoke at Jackson Hole he talked about the likelihood of QE2. That speech sent both the Bond and Stock markets into a rally mode. Amazingly, the Stock market is very close to levels seen last August, which means that Stocks have given up virtually all of the gains seen from the enormous rally sparked by QE2.

Anticipation and disappointment. Stocks traded higher early last week in anticipation of Fed Chairman Ben Bernanke’s big speech on Friday at Jackson Hole, Wyoming. With the economy slumping and Stock prices falling in recent weeks, there was a growing feeling that the Fed is willing do something that would signal to the markets that they are willing to help more if needed.

After Bernanke’s speech – and his reluctance to discuss QE3 – Stocks dropped slightly, signaling investor’s disappointment in having to wait longer to see what steps the Fed may take. By late Friday, however, volatility reared its head again, as Stocks attempted to rally and Bonds gave up some of their gains.

With the Fed pushing off any meaningful discussion of its policies and options until the September meeting, this story is sure to continue impacting the markets. Until we hear exactly what the Fed will do, the markets will be forced to speculate and anticipate…which could mean more volatility. For now, the situation looks beneficial for people looking to purchase a home or refinance, as home loan rates remain near historic lows. But things can change quickly, so now is the time to take a look at the options available.

 

Forecast for the Week

 

This week heats up again with the big topics of housing, inflation and employment taking center stage:

  • The week starts off Monday morning with reports on Personal Spending and Personal Income, as well as Pending Home Sales.
  • On Monday, we’ll also see the Personal Consumption Expenditures (PCE) Index, which is the Fed’s favorite gauge of inflation. Remember, inflation is the archenemy of Bonds and home loan rates, so this will be an important report to watch.
  • Manufacturing reports will also hit this week. On Wednesday, we’ll see the Chicago PMI, which reports on manufacturing in Chicago and is a good indicator of overall economic activity. Then on Thursday, we’ll see the ISM Index, which is the king of all manufacturing indices and is considered the single best snapshot of the factory sector.
  • The big topic of the week will be employment. First up is the ADP National Employment Report on Wednesday, which measures non-farm private employment, followed by another round of Initial Jobless Claims on Thursday. In last week’s report, Initial Jobless Claims were reported higher than expected. This leading indicator of the labor market shows us that things remain weak.
  • Finally, the busy week culminates with the highly anticipated monthly Jobs Report on Friday. This report features new data regarding job growth and the unemployment rate – needless to say, this report can be a big market mover!

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, the markets have continued their volatility. But Bonds and Home loan rates were able to finish the week strong.

That means that home loan rates are still at some of the most attractive levels we’ve seen in history. If you know someone in considering purchasing a home or refinancing, it’s an ideal time for them to review their options and see how they can benefit. All they have to do is call or email me to get started.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 26, 2011)

 

The Mortgage Market Guide View…
 

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.

 As your mortgage professional, I am sending you the MMG WEEKLY because I am committed to keeping you updated on the economic events that impact interest rates and how they may affect you.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: curtis@kcmortgageplanner.com

If you prefer to send your removal request by mail the address is:

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, 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.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee

Aug

23

Mortgage Market Guide – Featured Charts.

Certified Mortgage Planner, Curtis Schartz, Home loan, Interest Rate, Interest Rates, kansas city, lees summit, lower interest, lower rates, Mortgage, mortgage backed securities, no cost refinance, overland park, Pulaski Bank, purchase, rate, Rates, Refinance, shawnee