MMG Weekly 2/8/16

Guy R. Vetrano NMLS# 183357
Mortgage Loan Originator
Bay Equity Home Loans
Phone: 480.500.6000 x 6017
Mobile: 602-692-7196
E-fax: 602.532.7304

In This Issue  

Last Week in Review: Job creation slows while home prices continue to rise.

Forecast for the Week: Investors may waffle between Stocks and Bonds.

View: Out of the office? Get an app for efficient remote work.

Last Week in Review  

“Should I stay or should I go now?” The Clash. Investors asked that question all week as they considered in which markets they may have overstayed their welcome. Economic data sent mixed messages as to whether Stocks or Bonds would be more gracious hosts to investment dollars.

Case in point: After a whirlwind of job creation in October, November and December, the January Jobs Report showed a bit of a slowdown, according to the Labor Department. Payrolls rose by 151,000 in January. While still strong, the number is dwarfed by year-end leaps that helped make 2015 the second-best year for job creation since the late 1990s. The report also noted the Unemployment Rate dropped to 4.9 percent while wages increased, which is great news.

In other events, inflation remained tame, manufacturing data was weak and personal spending was unchanged from the prior month.

So, what does all this have to do with buying or refinancing a home?

When investors move dollars from Stocks to Bonds, Mortgage Backed Securities and other Bonds improve. Because home loan rates are directly tied to Mortgage Bonds, home loan rates can improve as well. Last week’s trading illustrated this, pushing home loan rates to lows not seen since April 2015.

On the housing front, home prices, including distressed sales, rose 6.3 percent from December 2014 to December 2015, according to CoreLogic, a leading global property information, analytics and data services provider. From November to December, prices were up 0.8 percent. CoreLogic cited strong demand and tight supply for the gains.

Looking ahead, home prices are expected to rise 5.4 percent from December 2015 to December 2016.

At this time, home loan rates are quite attractive. If you or someone you know has any questions about the housing market, current rates or home loan products, please don’t hesitate to contact me.

Forecast for the Week  

It’s a quiet week for economic news. With little being reported, oil prices may continue to impact markets.
  • Economic data doesn’t kick off until Thursday with weekly Initial Jobless Claims.
  • On Friday, Retail Sales and the Consumer Sentiment Index 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 Bonds have stalled at the highs seen last April.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Feb 05, 2016)

Japanese Candlestick Chart

The Mortgage Market Guide View…  

5 Apps for Remote Work

Whether you’re out on the road, working in a home office, or collaborating remotely with business partners or vendors, you’re going to need apps. The web-based solutions listed below will help make collaborating and communicating easy, efficient and enjoyable. Here are five top picks:

Slack helps you exchange cumbersome email threads for real time, team-based communications. Slack saves every remark in a conversation thread (including attachments like documents or other media) for later reference.

Trello is a project management solution based on a system of cards and project boards, similar to a real-life corkboard with index cards. Each card allows you to attach links or documents and contains individual message threads to keep things tidy.

Meldium manages passwords for teams, giving system or document access to team members without direct sharing of any passwords, closing a huge security gap when dealing with sensitive information.

Docady converts any camera-equipped device into a document scanner, then organizes those scans into a searchable database that’s encrypted to military-grade standards, keeping all your important files in a secure digital space.

Box is a file sharing and collaboration tool that supports many file types, including Office Online for editing Word, Excel and PowerPoint files simultaneously with remote team members.

Don’t see what you need here? Check out 27 more apps that can help you be more effective when working remote.

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

Source: Inc.

Economic Calendar for the Week of February 08 – February 12
Economic Report
Thu. February 11
Jobless Claims (Initial)
Fri. February 12
Retail Sales
Fri. February 12
Retail Sales ex-auto
Fri. February 12
Consumer Sentiment Index (UoM)

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.