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Bank of Commerce/Mortgage
A Preferred Mortgage Bank and Brokerage Firm
 

Provided to you Exclusively
by
Calvin Cox
 
 
 
Calvin Cox, Partner
Clare Romero, Operations Manager
Bank of Commerce/Mortgage
Office: 303-544-0600
Cell: 303-931-8360
E-Mail: calvin@commercemtg.com
 
Calvin Cox, Partner
 
For the week of Aug 20, 2018 --- Vol. 16, Issue 34
In This Issue
 
Last Week in Review: Retail Sales were stronger than expected in July. Housing Starts improved from June's nine-month low.

Forecast for the Week: We'll get the scoop on July new and existing home sales in the second part of the week. Ongoing geopolitical and tariff news could also lead to volatility.

View: This very smart smartphone feature unblocks certain callers and lets them ring through.


Last Week in Review
 
"I'm on my way. I'm on my way. Home sweet home." Motley Crue. July brought some mixed news for homebuyers around the country who've been looking to find their way to new homes but have struggled with limited inventory.

July Housing Starts rebounded slightly from the steep decreases seen in June. Housing Starts grew to a seasonally adjusted annual rate of 1.168 million units, which was a 0.9 percent increase from June's downwardly revised estimate of 1.158 million, the Commerce Department reported.

Housing Starts were down 1.4 percent from July 2017, however, likely due to higher construction costs for materials and land and labor shortages this year. Results were divided across the country with increases in the Midwest and South and declines in the West and Northeast. Single-family starts, which make up the bulk of the residential housing market, were up 0.9 percent from June.

There was a positive sign as Building Permits, a sign of future construction, increased 1.5 percent from June and are up 4.2 percent from a year ago. If this upward direction in permits continues, new home construction could get the boost it needs in the months to come.

Retail Sales data for July signaled that the U.S. economy is doing well. Retail Sales rose 0.5 percent from June, well above the 0.1 percent expected. However, June Retail Sales were revised lower to 0.2 percent from 0.5 percent, which took some of the luster from July's figures. On an annual basis, Retail Sales were up 6.4 percent from July of last year.

Both Stocks and Bonds saw seesaw trading in the latest week due to uncertainty overseas in Turkey and ongoing tariff issues with China. Home loan rates remain near historic lows.

If you or someone you know has questions about home loan rates or products, please contact me. I'm happy to help.


Forecast for the Week
 
Housing data highlights the second half of the week.
  • Existing Home Sales will be released on Wednesday. New Home Sales follow on Thursday.
  • Also on Thursday, weekly Initial Jobless Claims will be released, as usual.
  • Friday brings Durable Goods Orders.
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 been on an improving trend this August. Home loan rates remain attractive.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday Aug 17, 2018)
Japanese Candlestick Chart


The Mortgage Market Guide View...
 
Tech Tip:
How to Allow Select Callers Through 'Do Not Disturb' Mode


Do Not Disturb mode is the best way to silence your smartphone when you're in a conference, client meeting or during other business activities that require your full attention. But there may be occasions when you wish to receive calls from certain people, such as a decision-maker, your assistant, the new babysitter or a family member. Follow these simple instructions for your phone to make sure you don't miss a thing:

For Android: Swipe down from the top of the screen and click on the gear icon for Settings. Then, from the menu, tap Sound and access Do Not Disturb. From there, you can select the functionality of what happens when you receive calls or notifications while in Do Not Disturb mode. Consider allowing calls from your "starred" or "favorite" contacts or from any caller who calls a second time in a 15-minute period. To star a contact, open the contact's card in the Contacts app and tap the star icon in the top-right corner of the screen. These contacts will also appear in your Favorites for easy-access calling.

For iPhone: Open the Settings (gear) app and select Do Not Disturb. Select Phone > Allow Calls From and select your Favorites. Tap the Repeated Calls button to allow a second call from the same person within three minutes. To designate favorite contacts, open the Contacts app, open the person's card file, and tap Add to Favorites. Or in later versions, open the contact card, tap Edit, select Ringtone and toggle the button next to Emergency Bypass, then tap Done.

Keep focused while never missing another high-priority call with this tip!

Devices may vary slightly by manufacturer and version, check your owners manual for any discrepancies.

Economic Calendar for the Week of August 20 - August 24

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Wed. August 22
10:00
Existing Home Sales
Jul
NA
 
5.38M
Moderate
Thu. August 23
08:30
Jobless Claims (Initial)
8/18
NA
 
212K
Moderate
Thu. August 23
10:00
New Home Sales
Jul
NA
 
631K
Moderate
Fri. August 24
08:30
Durable Goods Orders
Jul
NA
 
1.0%
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: calvin@commercemtg.com

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Calvin Cox
Bank of Commerce/Mortgage
1637 Pearl Street Ste #203
Boulder, CO 80302

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