If you can't see the newsletter, or would like to view it online, use this link If you have received this newsletter indirectly and would like to be added to our weekly distribution list, use this link
 

Provided to you Exclusively
by
Lillian Wong
  
For the week of Jul 24, 2017 | Vol. 15, Issue 30
Lillian Wong
Lillian Wong
Sr. Loan Officer NMLS ID 630337
Lillian Wong & Associates
Prospect Mortgage
Office: 480-650-5412
E-Mail: lillian@lillianwong.com
Website: www.lillianwong.net
Lillian Wong & Associates <br>Prospect Mortgage
In This Issue
Last Week in Review: After months of decline, Housing Starts were on the up and up in June. Building Permits were up too.

Forecast for the Week: The Fed monetary policy statement could be the standout in an economic-data-filled week.

View: Tap into professional motivation with this week's icebreakers.


Last Week in Review
"I want to jump for joy." 2 Unlimited. After three straight monthly declines, Housing Starts jumped in June. Building Permits did too.

Housing Starts surged 8.3 percent from May to an annual rate of 1.215 million units, the Commerce Department reported. This is the highest level since February. Single-family starts, which represent the largest share of the residential housing market, rose 6.3 percent. The multi-family dwelling sector soared as well. Housing Starts also were up 2.1 percent from June 2016.

June Building Permits, a sign of future construction, also rose 7.4 percent from May's revised figure to an annual rate of 1.254 million.

While the increase in Housing Starts and Building Permits is positive news, both have some ground to cover. Inventories for existing and new home sales are still running below what is considered the normal six-month supply. In addition, higher prices for lumber and shortages of workers and land space could be potential hurdles to jump in the near future for new homebuilding.

At this time, home loan rates remain just above historic lows.

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
Fed monetary policy could be the cherry on top of this week's five-layer data cake.
  • Housing data kicks off on Monday with Existing Homes Sales, followed by the S&P/Case-Shiller Home Price Index on Tuesday and New Home Sales on Wednesday.
  • Consumer Confidence will be delivered on Tuesday while the Consumer Sentiment Index releases on Friday.
  • Though not an economic report, the Federal Open Market Committee meeting begins Tuesday and will end on Wednesday at 2:00 p.m. ET with the release of the monetary policy statement.
  • Durable Goods Orders and weekly Initial Jobless Claims will be delivered on Thursday.
  • And last but not least, the first reading on second quarter 2017 Gross Domestic Product will be released on Friday along with the wage-inflation-reading Employment Cost Index.
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 have edged higher in recent days leaving home loan rates in attractive territory.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Jul 21, 2017)
Japanese Candlestick Chart


The Mortgage Market Guide View...
Icebreakers That Make You More Interesting
Part 3

If your conversation starters are starting to sound like boring small talk, liven things up with better questions. People will find you, and the conversation, more interesting and engaging.

Previously, we shared life story and deep insight icebreaker questions. The next type of icebreaker questions that can make your conversations more interesting are profession questions, which can help deepen your understanding of someone's work. Give these a try:

"Why did you choose your profession?" The answer to this question can provide you with insights about motivations and passions. But even more, it can provide you with opportunities for further action. For example, if someone is unhappy in a current position, you may be able to help with a bit of mentoring, a referral or offering friendly advice that will be appreciated and remembered later on.

"What was the highlight of your work week?" There's nothing like starting off a conversation on a positive note, and this question gives the other person a chance to share wins and maybe even brag a little bit. Be prepared to share your own win for the week!

"What do you appreciate most about your current role?" Again, this starts a conversation out on a positive note. Moreover, the answer can give you insights into the person's business or key players at that company. You can remember this information when you give shout outs on social media posts or as you reach out and network to develop more professional partnerships.

Never be stuck for something to say when meeting someone new again. Commit these icebreaker categories to memory, and you'll be coming up with your own interesting questions in no time!

Source: Inc.

Economic Calendar for the Week of July 24 - July 28

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. July 24
10:00
Existing Home Sales
Jun
5.58M
5.52M
5.62M
Moderate
Tue. July 25
09:00
S&P/Case-Shiller Home Price Index
May
5.7%
5.7%
5.8%
Moderate
Tue. July 25
10:00
Consumer Confidence
Jul
116.8
121.1
117.3
Moderate
Wed. July 26
10:00
New Home Sales
Jun
610K
610K
605K
Moderate
Wed. July 26
02:00
FOMC Meeting
Jul
NA
Unch
1.125%
HIGH
Thu. July 27
08:30
Durable Goods Orders
Jun
2.9%
6.5%
-0.1%
Moderate
Thu. July 27
08:30
Jobless Claims (Initial)
7/22
240K
244K
234K
Moderate
Fri. July 28
08:30
Gross Domestic Product (GDP)
Q2
2.8%
 
1.4%
Moderate
Fri. July 28
08:30
GDP Chain Deflator
Q2
1.3%
 
1.9%
Moderate
Fri. July 28
08:30
Employment Cost Index (ECI)
Q2
0.6%
 
0.8%
HIGH
Fri. July 28
10:00
Consumer Sentiment Index (UoM)
Jul
93.1
 
93.1
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: lillian@lillianwong.com

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

Lillian Wong
Lillian Wong & Associates
14635 N Kierland Blvd Ste 100
Scottsdale, AZ 85254

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

Equal Housing Lender