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Provided to you Exclusively
by
Lillian Wong
  
For the week of Sep 24, 2018 | Vol. 16, Issue 39
Lillian Wong
Lillian Wong
Sr. Loan Officer NMLS ID 630337
Lillian Wong & Associates
Fairway Independent Mortgage
Office: 480-650-5412
E-Mail: lillian@lillianwong.com
Website: www.lillianwong.net
Lillian Wong & Associates <br>Fairway Independent Mortgage
In This Issue
Last Week in Review: August brought mixed results on new home construction and sales of existing homes.

Forecast for the Week: News on housing, inflation and GDP highlight a packed economic calendar. Plus, the Fed meets.

View: Take charge of autocorrect settings on your smartphone.


Last Week in Review
"Don't rain on my parade." Barbra Streisand. Housing Starts were on the move higher in August, but the news on future construction was a bit of a damper.

August Housing Starts rose 9.2 percent from July to a seasonally adjusted annual rate of 1.282 million units, above the 1.229 million expected. Single-family starts, which make up the largest share of the residential housing market, were up 1.9 percent while multi-family starts surged 27.3 percent. Housing Starts were flat in the Northeast, but the Midwest, South and West all saw positive gains. Housing Starts were also 9.4 percent higher than August of last year.

Building Permits, a sign of future construction, didn't fare as well, an unfortunate development for would-be buyers struggling with limited inventory in many areas of the country. From July to August, Building Permits decreased 5.7 percent. They are also 5.5 percent lower than August 2017.

Existing Home Sales managed to stabilize in August after four straight months of declines, the National Association of REALTORS® reported. Existing Home Sales were unchanged in August from July at an annual rate of 5.34 million units, below the 5.37 million expected. Flat sales were due to a balance of gains in the Northeast and Midwest and losses in the South and West. Unsold inventory of existing homes was at a 4.3-month supply, still well below the 6-month supply considered normal. Sales were also down 1.5 percent when compared to August 2017.

Mortgage Bonds have struggled in the latest week due in part to positive gains in Stocks. Home loan rates have ticked higher but remain attractive.

If you or someone you know has questions about home loans, give me a call. I'd be happy to help.


Forecast for the Week
The Fed meeting could take center stage amidst a full week of economic reports.
  • Consumer Confidence kicks off the week on Tuesday followed by the Consumer Sentiment Index on Friday.
  • In housing news, the S&P/Case-Shiller Home Price Index will be delivered on Tuesday, New Home Sales Wednesday and Pending Home Sales Thursday.
  • Also on Wednesday, the Fed's two-day Federal Open Market Committee meeting culminates with the monetary policy statement.
  • Weekly Initial Jobless Claims will be released as usual on Thursday along with Gross Domestic Product and Durable Goods Orders.
  • On Friday, look for Personal Consumption Expenditures, Personal Income and Personal Spending.
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 fallen in recent weeks. Home loan rates have moved higher but remain attractive.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday Sep 21, 2018)
Japanese Candlestick Chart


The Mortgage Market Guide View...
Tech Tip:
Avoid Autocorrect Aggravations


If you have ever accidentally added a misspelled word to autocorrect or you frequently find yourself retyping words, abbreviations or names to avoid correction by your smartphone, you know the frustration! The steps below will help you tap into your text settings and abbreviate the annoyance.

iPhone Users
To add words or shortcuts that will expand to the correct word as you text or leave specific words or shortcut expressions uncorrected, go to Settings > General > Keyboards > Text Replacement and hit the plus (+) icon to add a new shortcut. For example, you can type "omw" and have "on my way" automatically appear; or you type "appt" and "appointment" appears. Leave the Shortcut field blank to add any unusual words, company names, acronyms or proper names you don't want corrected.

To reset the autocorrect dictionary and discard former accidental corrections, go to Settings > General > Reset > Reset Keyboard Dictionary and follow the prompt.

Android Users
To add words or shortcuts that will expand to the correct word as you text or leave specific words or shortcut expressions uncorrected, go to Settings (gear icon) > System > Language & Input > Virtual Keyboard > Gboard > Personal Dictionary, then select your keyboard language. Hit the plus (+) icon to add any unusual words, company names, acronyms or proper names you don't want corrected. You can also add shortcuts to these words that will populate as suggested words when typing.

To reset the autocorrect dictionary and discard former accidental corrections, go to Settings > System > Language & Input > Virtual Keyboard > Gboard > Text Correction > Dictionary > Delete Learned Words.

These steps may vary slightly by brand and operating system, check your user guide for more details.

Economic Calendar for the Week of September 24 - September 28

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. September 25
08:30
S&P/Case-Shiller Home Price Index
Jul
NA
 
6.3%
Moderate
Tue. September 25
08:30
Consumer Confidence
Sep
NA
 
133.4
Moderate
Wed. September 26
10:00
New Home Sales
Aug
NA
 
627K
Moderate
Wed. September 26
02:00
FOMC Meeting
Sep
0.25%
 
2.0%
HIGH
Thu. September 27
08:30
GDP Chain Deflator
Q2
NA
 
3.0%
HIGH
Thu. September 27
08:30
Gross Domestic Product (GDP)
Q2
NA
 
4.2%
HIGH
Thu. September 27
08:30
Durable Goods Orders
Aug
NA
 
-1.7%
Moderate
Thu. September 27
08:30
Jobless Claims (Initial)
9/22
NA
 
NA
Moderate
Thu. September 27
10:00
Pending Home Sales
Aug
NA
 
-0.7%
Moderate
Fri. September 28
08:30
Personal Income
Aug
NA
 
0.3%
Low
Fri. September 28
08:30
Personal Spending
Aug
NA
 
0.4%
Low
Fri. September 28
08:30
Personal Consumption Expenditures and Core PCE
Aug
NA
 
0.2%
HIGH
Fri. September 28
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
 
2.0%
HIGH
Fri. September 28
10:00
Consumer Sentiment Index (UoM)
Sep
NA
 
100.8
HIGH

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.

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Lillian Wong
Lillian Wong & Associates
Fairway Independent Mortgage
9308 E Raintree Drive
Scottsdale, AZ 85260 

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