MMG Weekly 4/20/15

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: Home loan rates remain near record lows thanks to mixed earnings and economic reports.Forecast for the Week: Earnings season continues, plus look for two key housing reports.

View: Take your presentations to the next level with these tips for creating effective PowerPoint decks.

Last Week in Review  

“Bust a move.” Young MC. Mortgage Bonds have been trying to bust through to some of their best levels of the year, as a steady stream of mixed earnings and economic reports have hit the wires.In the housing sector, there was a positive report from home builders across the nation, as the National Association of Home Builders Housing Market Index rose 4 points to 56. This index measures builder confidence and readings over 50 are seen as positive.

Housing Starts in March also edged higher after the big decline in February that had been caused by heavy snow across the nation. However, the March reading of 926,000 is still 2.5 percent below the reading a year ago, and well below the 1.5 million average for the 20 years leading up to the housing crisis. Building Permits, which are a sign of future construction, also came in below expectations.

Inflation made headlines in the latest week. After negative readings in November, December and January, the Consumer Price Index rose slightly in March thanks in large part to rising gas prices. Meanwhile, the Producer Price Index, which measures prices that businesses receive for their goods and services, fell by 0.8 percent from March 2014 to March 2015. This is in stark contrast to the 2.1 percent annual gain recorded in May 2014.

Overall, the readings show that inflation remains tame, which is Bond-friendly news as inflation reduces the value of fixed assets like Bonds. And since home loan rates are tied to Mortgage Bonds, if tame inflation continues, this could help keep home loan rates near record lows.

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

Forecast for the Week  

The heart of earnings season is upon us, while the economic calendar is on the light side.

  • We’ll get a double dose of housing news with Existing Home Sales on Wednesday and New Home Sales on Thursday.
  • Also on Thursday, Weekly Initial Jobless Claims will be released, as usual.
  • Ending the week, look for Durable Goods Orders on Friday.

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, the recent boost in Mortgage Bonds has helped keep home loan rates near record lows.

Chart: Fannie Mae 3.0% Mortgage Bond (Friday April 17, 2015)

Japanese Candlestick Chart

The Mortgage Market Guide View…  

Create Effective PowerPoint DecksWhether you’ve been invited to share your expertise at a local event or you’ll be giving a presentation to clients or colleagues, a PowerPoint deck is a wonderful visual tool to go along with your speech or message.

A PowerPoint presentation serves three key functions. First, it provides visual cues to make it easy for your audience to follow along. Second, it reinforces your key points in a visual format. Finally, it provides a framework to help you hone your message.

The following strategies can help you create effective PowerPoint decks.

Make it easy to follow along:

  • Include an agenda slide so the audience knows what to expect.
  • Place transitional title slides between key sections to allow your audience to shift focus to your next point.
  • Make sure headings or transitional slides align with your agenda.
  • Use consistent formatting, so the audience knows where to expect placement of headings, subheadings, bullets and graphics.

Make slides readable:

  • Ensure high contrast between the background color and text color.
  • Use 24-point font type, at a minimum, for slide text.
  • Have fewer than 35 words per slide.
  • Present only three to five bullets per slide when using a bulleted list.
  • Trim copy to short, consistent phrases. Complete sentences are not necessary.

Make content meaningful:

  • Use graphics to illustrate a point. While not every slide needs a graphic, presentations with a mix of images and text can be more impactful.
  • Avoid unnecessary animation that distracts from your message.
  • Format a clear footer on every slide with your name and contact information so people can capture your information.

Finally, be respectful of the time. For planning purposes, think about spending one to two minutes per slide. If you’re giving a 10-minute presentation, plan on having five to seven slides. This does not include title or transitional slides, unless you have a one to two minute transition.

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

Economic Calendar for the Week of April 20 – April 24

Economic Report
Wed. April 22
Existing Home Sales
Thu. April 23
Jobless Claims (Initial)
Thu. April 23
New Home Sales
Fri. April 24
Durable Goods Orders

Equal Housing Lender. This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be available at time of application. Information and/or data are subject to change without notice. All loans are subject to credit approval. Not all loans or products are available in all states. Bay Equity LLC, 100 California Street Suite 1100, San Francisco, CA 94111-4561; NMLS ID#76988. Arizona Mortgage Banker License #0910340; NMLS consumer access:
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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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