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All Western Mortgage, Inc.
 
Provided to you Exclusively by Scott Pisan
 
 
 
Scott Pisan
Sr. Loan Officer
NMLS # 301447
All Western Mortgage, Inc.
Office: (702) 556-2862
Cell: (702) 556-2862
Fax: (702) 997-7177
E-Mail: spisan@allwestern.com
 
Scott Pisan
 
For the week of Mar 25, 2019 --- Vol. 17, Issue 12
In This Issue
 
Last Week in Review: Thank you Jerome Powell

Forecast for the Week: Fed's favorite report due out

View: Learn some tips on video marketing.

Last Week in Review
 

























The monetary authority of the United States, the Federal Reserve, meets 8 times a year to discuss the economy and adjust monetary policy to promote maximum employment and maintain price stability (inflation).

The Fed, led by Chairman Jerome Powell, met this past Wednesday and decided to leave the Fed Funds Rate unchanged at 2.50% - this was expected. They also issued their Monetary Policy Statement which includes their outlook on the economy and its interest rate forecast.

Overall the Statement was "dovish", meaning stimulative to the economy. They forecasted slower US growth, and inflation running beneath their target, which led to them forecasting no more rate hikes for the remainder of 2019. This was a nice surprise to the financial markets.

The Fed, inflation, and higher interest rates are not an immediate threat. This continues to push Stocks higher and long-term Bonds, like Mortgage Bonds, to one-year highs. This helps bring home loan rates to one-year lows.

Bottom line: The spring housing market could be one of the best in years thanks to a solid economy, relatively low rates, a positive wealth effect thanks to the rise in Stocks and a Federal Reserve that said rates are not likely to rise anytime soon - if at all.

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
 
After the Fed lifted Bond prices last week with a dovish Monetary Policy Statement, the markets in the upcoming week will have to deal with a bevy of economic data.

The big report will be Friday's Core PCE (Personal Consumption Expenditures price index). This report measures price changes for household goods and services, and is the preferred method for the Fed when measuring consumer inflation in the United States.

Last week, the Fed said inflation will continue to remain low, and the non-threat of higher inflation is one of the factors leading to the complacency and calm in the financial markets.

However, inflation can grow quickly and a trend worth following is rising wages, which is currently sitting at 3.4% year-over-year, and the highest levels in ten years.

As wages rise, people have more disposable income which creates a higher demand for goods and services, thereby driving prices higher.

Remember that inflation is the driver of long-term rates like mortgages - not the Fed. So, if inflation remains low, as many expect, then rates will also remain low. If inflation ticks higher, home loan rates must go higher as well.

Reports to watch:
  • Housing data will be plentiful with Tuesday's S&P Case-Shiller Home Price Index, Housing Starts and Building Permits.
  • Pending Home Sales will be released on Thursday.
  • Consumer Confidence will be delivered on Tuesday with Consumer Sentiment on Friday.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday Mar 22, 2019)
Japanese Candlestick Chart


The Mortgage Market Guide View...
 
Tip: How to create a video marketing campaign

The case for video marketing is strong. Eighty-seven percent of consumers would like to see more video from brands in 2019. The investment in video is likely to pay off, as 83% of marketers report that video provides them good ROI. If you're not connecting with your audience via video, it's never too soon to start.

The first step to creating a solid video marketing campaign is defining your purpose. What information can you provide to your audience that's original and valuable? It's fine to share recent market reports and statistics, but make sure you're putting your own spin on it. Give professional insights that make dry facts and statistics rich and engaging. Go beyond what the viewer can find with his or her own quick Google search, and dive deeper into the topic.

Infuse your videos with personality. Home buyers look for professionals who are warm and personable. This is your chance to convey these traits to a wide audience. Don't be afraid to add playful jokes, smart quips, or personal stories to your updates. Discussing how one of your recent home sales demonstrates a particular trend will validate the information you're sharing and give you credibility as a successful real estate agent.

Finally, put a little post-production creativity into your piece. It doesn't take long to add sleek titles or an eye-catching intro screen to your video. With a product like Adobe Premiere, you can even cut together multiple camera angles and add panning and zooming effects for extra interest. Brief but engaging marketing videos will draw your audience back for more.

Sources: Realtor.com, HubSpot

Economic Calendar for the Week of March 25 - March 29

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Tue. March 26
08:30
Housing Starts
Feb
1.210M
 
1.230M
Moderate
Tue. March 26
08:30
Building Permits
Feb
1.380M
 
1.345M
Moderate
Tue. March 26
09:00
S&P/Case-Shiller Home Price Index
Jan
4.0%
 
4.2%
Moderate
Tue. March 26
10:00
Consumer Confidence
Mar
132.0
 
131.4
Moderate
Thu. March 28
08:30
Jobless Claims (Initial)
3/23
220K
 
221K
Moderate
Thu. March 28
08:30
Gross Domestic Product (GDP)
Q4/2018
2.5%
 
2.6%
HIGH
Thu. March 28
08:30
GDP Chain Deflator
Q4/2018
1.8%
 
1.8%
HIGH
Thu. March 28
10:00
Pending Home Sales
Feb
0.5%
 
4.6%
Moderate
Fri. March 29
08:30
Personal Income
Feb
0.3%
 
-0.1%
Moderate
Fri. March 29
08:30
Personal Consumption Expenditures and Core PCE
Jan
02.%
 
0.2%
HIGH
Fri. March 29
08:30
Personal Consumption Expenditures and Core PCE
YOY
NA
 
1.9%
HIGH
Fri. March 29
08:30
Personal Spending
Feb
NA
 
NA
Moderate
Fri. March 29
10:00
Consumer Sentiment Index (UoM)
Mar
97.8
 
97.8
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.

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Scott Pisan
All Western Mortgage, Inc.
NMLS# 14210
8345 W. Sunset Rd. #380
Las Vegas, NV 89113
(702)369-0905

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