| | |
| Last Week in Review: Key housing and inflation data was released.
Forecast for the Week: A holiday-shortened week and a quiet economic calendar are ahead, but look for important housing data.
View: Want to stay on track with your 2014 goals and resolutions? There's an app (or three) for that. | |
| | |
 |
| | |
| Knowledge is power. That popular phrase certainly applies to last week's busy economic report calendar, with key reports providing important information through the week. Here are the highlights.
 Housing Starts in December declined by 9.8 percent from November, coming in just higher than expectations. Building Permits, a sign of future construction, fell by 3 percent. On the foreclosure front, RealtyTrac reported that foreclosure filings plunged by 26 percent from 2012 to 2013, with 1.4 million foreclosures recorded last year. This was the lowest total since 2007 as the housing sector continues to rebound, though at a modest and sometimes uneven pace.
In inflation news, the Producer Price Index, which measures inflation at the wholesale level, rose in December for the first time in three months. However, the Consumer Price Index for December showed there is not much inflation pressure at the consumer level. Also of note, Retail Sales in December rose by 0.2 percent, above expectations. This number was lower than the 0.4 percent recorded in November, which was revised down from the 0.7 percent that was previously reported.
What does this mean for home loan rates? The Fed will continue to monitor economic reports closely, as it decides when to further taper its Bond purchases. Remember that the Fed is now purchasing $40 billion in Treasuries and $35 billion in Mortgage Bonds (the type of Bonds on which home loan rates are based) each month to stimulate the economy and housing market. This figure is down from the $85 billion in Bonds and Treasuries the Fed had been purchasing last year. The timing of the Fed's decision to further taper these purchases could have a big impact on Mortgage Bonds and home loan rates this year, and it's an important story to continue monitoring.
The bottom line is that now remains a great time to consider a home purchase or refinance, as home loan rates remain attractive compared to historical levels. Let me know if I can answer any questions at all for you or your clients. | |
| | |
| Forecast for the Week  |
|
| | |
| The markets will be closed Monday in observance of the Martin Luther King, Jr. holiday, and the calendar is quiet the rest of the week.
In addition, earning season continues this week, with key reports from IBM, Microsoft and more. If reports are positive, Stocks could move higher at the expense of Bonds and 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. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond on which home loan rates are based.
When you see these Bond prices moving higher, it means home loan rates are improving 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, it was a volatile week in the markets, with many reports released. I'll continue to watch all the news closely for the latest developments.
| |
| | |
| The Mortgage Market Guide View... |
|
| | |
| Productivity Points
3 Apps to Help Keep You on Track
Setting resolutions is easy. The tricky part is keeping them! Here are three technological triumphs to help you achieve your New Year's resolutions, or any other successes you'd like to see happen in your life.
Producteev. One of the most useful and user-friendly "to do" style apps primarily for business people. In addition to a well-organized interface, Producteev allows you to set up and monitor projects for one or two people or even a whole team with a simple invite.
Toodledo. You've 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. Toodledo works on your mobile phone, email, calendar, and can even integrate directly into your web browser.
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 call those past clients or write a weekly prospecting email? Simply visit the Tweet Reminders site, enter your Twitter username and up to 5 tasks or reminders, and pick a date and time to be reminded. You'll get the scheduled reminder as a direct message on Twitter.
Give these helpful tips a try for your New Year's resolutions and 2014 goals, and feel free to share them with your team, partners, and colleagues.
Economic Calendar for the Week of January 20 - January 24
Date
|
ET
|
Economic Report
|
For
|
Estimate
|
Actual
|
Prior
|
Impact
|
| Thu. January 23 |
08:30
| Jobless Claims (Initial) |
1/18
|
NA
|
|
326K
|
Moderate
|
| Thu. January 23 |
10:00
| Existing Home Sales |
Dec
|
NA
|
|
4.90M
|
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.
You received this email as a result of your ongoing business relationship with Leonard Winslow. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials.
UNSUBSCRIBE: If you would like to stop receiving emails from Leonard Winslow, you can easily unsubscribe.
Copyright 2014. PlatinumPro Marketing.
|
|
Comments
Post a Comment