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Provided to you Exclusively by Philip Reece  
For the week of Oct 23, 2017 | Vol. 15, Issue 43
Philip Reece
Philip Reece
Licensed Loan Originator
NMLS ID#54547 - www.philreece.com
Homestead Funding Corp.
Office: 518-373-0814 ext 111
Cell: 518-339-7949
Fax: 518-373-0916
E-Mail: preece@homesteadfunding.com
Website: PhilReece.com
Homestead Funding Corp.
In This Issue
Last Week in Review: Housing Starts and Building Permits drop while Existing Home Sales edge up.

Forecast for the Week: Find out if the economy is still flexing its muscles with the first reading of third quarter GDP.

View: Master the art of video to propel business with these tips.

Last Week in Review
"I'm hiding from the storm till the damage is done." Lauren Alaina. Storms damaged data on Housing Starts and Building Permits from August to September, while Existing Home Sales edged higher.

Hurricanes Harvey and Irma put a dent in new home construction in Florida and southern Texas. The Commerce Department reported that total September Housing Starts fell 4.7 percent from August to an annual rate of 1.127 million units versus the 1.160 million expected. It was the lowest level since September 2016; however, from September 2016 to September 2017, starts were up 6.1 percent. Single-family starts fell 4.6 percent from August, although they were up 5.9 percent from September 2016. Multi-dwelling starts with five or more units saw a drop of 6.2 percent from August and a 7.9 percent rise over September 2016. Overall, the South saw a 9.3 percent decline in September, while gains were seen in the Northeast, Midwest and West.

Building Permits, a sign of future construction, fell 4.5 percent from August to an annual rate of 1.215 million units, just below the 1.225 million expected.

After three straight monthly declines, Existing Home Sales eked out a 0.7 percent gain in September to an annual rate of 5.39 million units, above the 5.29 million expected. September's sales pace is 1.5 percent below a year ago and is the second slowest over the past year (behind August). Ongoing supply shortages and the hurricanes muted overall activity and caused sales to fall back on an annual basis, according to the National Association of REALTORS®.

On a positive note, the October National Association of Home Builders Housing Market Index rose four points to 68, as homebuilders rebounded from the initial shock of Hurricanes Harvey and Irma. The Index measures sentiment among builders and any reading over 50 is considered a positive sign.

Finally, despite recent rallies in U.S. Stock markets that negatively impacted Mortgage Bond prices and the home loan rates tied to them, home loan rates remain near 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
Find out if the economy is still flexing its muscles with the first reading of third quarter GDP.
  • Economic data kicks off on Wednesday with the release of Durable Goods Orders.
  • Housing data comes from New Home Sales on Wednesday followed by Pending Home Sales on Thursday.
  • Also on Thursday, weekly Initial Jobless Claims will be reported.
  • Gross Domestic Product (GDP) will be delivered on Friday in addition to the Consumer Sentiment 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 slipped recently. Home loan rates remain near historic lows.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Oct 20, 2017)
Japanese Candlestick Chart

The Mortgage Market Guide View...
5 Video Marketing Success Tips, Part 1

Posting video to social media is one of the most powerful ways to attract clients, prospects and referral partners. And now that LinkedIn has joined the likes of Facebook and Instagram with native video capability, it makes sense to consider video part of your marketing toolkit. Here are five simple tips for composing videos to get the highest engagement possible.

Keep it under two minutes. Attention spans are short on the web, and research by video hosting firm Wistia confirms a significant drop in viewership after about two minutes. Make sure to stay on time and on point by scripting your video ahead of shooting. If you absolutely need to run longer, to demonstrate something or explain a longer process, create a multipart series.

Be instructional. Tips and how-to videos can be a great way to help your clients and prospects. For immediate instructional topic ideas, dive into your clients' most frequently asked questions or difficulties and share your solutions.

Stay native. According to data from Search Engine Journal, videos uploaded directly to Facebook received twice as many likes and nearly three times the shares as third-party links from sites like YouTube. The good news is uploading video direct to Facebook is just as easy as posting a photo.

Shoot vertically. While landscape view may look nicer on a television or computer monitor, videos shot vertically show up better on mobile devices where most people engage with social media.

Hold steady. If you shoot video with your smartphone use a cell phone tripod mount to avoid shaky movements. A tripod also helps you distance yourself from the camera, so viewers don't feel too close.

Stay tuned. Next week we'll dive into even more techniques to help your videos stand out from the crowd.

Source: Entrepreneur

Economic Calendar for the Week of October 23 - October 27

Economic Report
Wed. October 25
Durable Goods Orders
Wed. October 25
New Home Sales
Thu. October 26
Jobless Claims (Initial)
Thu. October 26
Pending Home Sales
Fri. October 27
Gross Domestic Product (GDP)
Fri. October 27
GDP Chain Deflator
Fri. October 27
Consumer Sentiment Index (UoM)

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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Philip K. Reece
1407 Route 9
Clifton Park NY 12065

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