MMG Weekly 10/30/17

Guy R. Vetrano NMLS# 183357
Senior Loan Officer
Bay Equity Home Loans
Phone: 480.500.6000 x 6017
Mobile: 602-692-7196
gvetrano@bayeq.com
www.vetranoteam.com
 

 

In This Issue  

Last Week in Review: New Home Sales soared while economic growth remained solid.

Forecast for the Week: Job growth is poised for a rebound in October after September’s numbers were impacted by the storms. Plus, the Fed meeting could spur volatility.

View: Increase consumer engagement with these video marketing tips.


Last Week in Review  

“We’re soaring, flying.” High School Musical. While home construction data suffered storm damage in September, New Home Sales broke free and soared. Gross Domestic Product also flexed its muscle.

The Commerce Department reported that New Home Sales surged 18.9 percent in September from August to their highest level since October 2007. This was the largest monthly gain since January 1992! Sales came in at 667,000 units versus the 555,000 units expected, and they were up 17 percent when compared to September 2016. Currently, there is a five-month inventory of new homes for sale on the market, down from six months in August. A six-month supply is seen as a healthy balance between supply and demand.

Gross Domestic Product (GDP) grew by a solid 3.0 percent in the third quarter of 2017, according to the first of three readings released by the Bureau of Economic Analysis. This follows the strong showing in second quarter, when economic activity increased 3.1 percent. Consumer spending, which makes up nearly two-thirds of economic activity, increased 2.4 percent after increasing 3.3 percent the previous quarter. GDP is the best way to measure a country’s overall economic health and includes the total value of finished goods and services produced within a country’s borders in a specific timeframe.

Finally, home loan rates remain in attractive territory despite recent Stock market rallies that pushed Mortgage Bond prices down.

If you or someone you know has questions about home financing or home loan rates please contact me. I’d be happy to help.


Forecast for the Week  
After September job growth was stifled by hurricanes, the October Jobs Report is poised for a rebound.
  • Economic data kicks off on Monday with Personal IncomePersonal Spending, and the inflation-reading Personal Consumption Expenditures.
  • Tuesday is fully loaded with the Employment Cost IndexS&P/Case-Shiller Home Price Index and Consumer Confidence.
  • Look for manufacturing news with Chicago PMI on Tuesday and the ISM Index on Wednesday.
  • Also on Wednesday, the ADP National Employment Report and the Fed’s Monetary Policy Statement will be released.
  • Weekly Initial Jobless Claims and Productivity numbers come out on Thursday.
  • The big headliner on Friday is the Jobs Report for October, which includes Non-farm PayrollsUnemployment RateAverage Work Week and Hourly Earnings. The ISM Services Index also will be released.

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

When you see these Bond prices moving higher, it means home loan rates are improving. When Bond prices are moving lower, home loan rates are getting worse.

To go one step further, a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes are on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, Mortgage Bond prices slipped recently. Home loan rates remain in attractive territory.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 27, 2017)
Japanese Candlestick Chart

The Mortgage Market Guide View…  

4 Video Marketing Success Tips, Part 2 

Posting video to social media is one of the most powerful ways to attract clients, prospects and referral partners. And now that LinkedIn has joined the likes of Facebook and Instagram with native video capability, it makes sense to consider video part of your marketing toolkit. Here are four more tips for composing videos to get the highest engagement possible.

Good sound. Poor sound quality can lose viewers just as fast as poor video quality. You can keep distracting ambient noise levels to a minimum and get a more “present” sound on both computer and smartphone recordings with an inexpensive external lavalier microphone.

Add captioning. Default autoplay features mean that videos are likely viewed with the sound off first. Explain just what’s happening on your screen and capture maximum interest by adding text captions via a SubRip file, easily created in Notepad.

Select a featured video, which permanently appears at the top of your Facebook Page. Featured or “pinned” videos are ideally placed for a commercial-style video. You can also add media to your personal LinkedIn profile, and include samples of previous videos you’ve created by using the embedded links from YouTube, Vimeo and many others.

Ask for action. Even the most professionally produced video won’t get great results without including a strong call to action. Give thought to what you want your audience to do specifically after they watch your videos. Whether it’s signing up for your email list, downloading a free guide, attending an event or scheduling an appointment, a compelling call to action is essential.

These simple tips and techniques will help your videos stand out from the crowd.

Source: Entrepreneur

Economic Calendar for the Week of October 30 – November 03
Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. October 30
08:30
Personal Income
Sep
NA
0.2%
Moderate
Mon. October 30
08:30
Personal Spending
Sep
NA
0.1%
Moderate
Mon. October 30
08:30
Personal Consumption Expenditures and Core PCE
Sep
NA
0.1%
HIGH
Mon. October 30
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
1.3%
HIGH
Tue. October 31
08:30
Employment Cost Index (ECI)
Q3
NA
0.5%
Moderate
Tue. October 31
09:00
S&P/Case-Shiller Home Price Index
Aug
NA
5.8%
Moderate
Tue. October 31
09:45
Chicago PMI
Oct
NA
65.2
HIGH
Tue. October 31
10:00
Consumer Confidence
Oct
NA
119.8
Moderate
Wed. November 01
08:15
ADP National Employment Report
Oct
NA
135K
HIGH
Wed. November 01
10:00
ISM Index
Oct
NA
60.8
HIGH
Wed. November 01
02:00
FOMC Meeting
Nov
NA
1.125%
HIGH
Thu. November 02
08:30
Jobless Claims (Initial)
10/28
NA
NA
Moderate
Thu. November 02
08:30
Productivity
Q3
NA
1.5%
Moderate
Fri. November 03
08:30
Unemployment Rate
Oct
NA
4.2%
HIGH
Fri. November 03
08:30
Non-farm Payrolls
Oct
NA
-33K
HIGH
Fri. November 03
08:30
Hourly Earnings
Oct
NA
0.5%
HIGH
Fri. November 03
08:30
Average Work Week
Oct
NA
34.4
HIGH
Fri. November 03
10:00
ISM Services Index
Oct
NA
59.8
Moderate
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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.
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