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American Property Financial
TDSML and NMLS Lic # 229981
Provided to you Exclusively by
The Most Creative Lender
in San Antonio
Joe Mays
American Property Financial
Office: 210-614-8951
Fax: 210-614-8952
Toll Free: 800-738-5626
E-Mail: hjmays@aol.com
Website: www.saloans.com
Joe Mays
For the week of Jul 23, 2018 --- Vol. 16, Issue 30
In This Issue
Last Week in Review: June saw Housing Starts slump and Retail Sales jump.

Forecast for the Week: This week's reports will show how home sales fared in June and how GDP did in the second quarter.

View: An easy way to ask satisfied clients to refer you, and help them follow through.

Last Week in Review
"My mama told me, 'You better shop around.'" The Miracles. Consumers weren't afraid to shop around in June, while construction data did little to lessen inventory woes.

U.S. homebuilders broke ground on fewer homes than expected in June, due in part to higher costs for lumber, lack of available land and a shortage of construction workers. June Housing Starts fell 12.3 percent from May to an annual rate of 1.173 million units. This was the lowest level since September 2017, as Housing Starts declined in all four major regions of the country. Starts were down 4.2 percent from June of last year.

Single-family starts, which make up the bulk of residential housing, fell 9.1 percent in June from May. Multi-family dwellings of five or more units plunged 20.2 percent month over month. Building Permits, a sign of future construction, also declined 2.2 percent from May to an annual rate of 1.273 million. June's figures were a disappointment given that a lack of inventory has been an ongoing challenge to homebuyers in many areas of the country.

Retail Sales went in the opposite direction in June, as they were up 0.5 percent from May, the Commerce Department reported. May's figure was also revised sharply higher to 1.3 percent from 0.8 percent. From June 2017 to June 2018, sales rose 6.6 percent.

The Retail Sales report is considered the most-timely indicator of broad consumer spending patterns. The key takeaway is that people spend more when they are less concerned about the economy and their employment. Strong Retail Sales typically signal a belief that the economy is doing well.

Mortgage Bonds continued to trade in a sideways pattern in recent days due in part to the mix of economic data. 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 always happy to help.

Forecast for the Week
Look for key housing reports and news on second quarter economic performance.
  • Look for housing news with Existing Home Sales on Monday and New Home Sales on Wednesday.
  • On Thursday, Durable Goods Orders and weekly Initial Jobless Claims will be delivered.
  • Gross Domestic Product and the Consumer Sentiment Index will be released Friday.
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, volatility has lessened recently in the Mortgage Bond market as sideways trading continues. Home loan rates remain attractive.

Chart: Fannie Mae 4.0% Mortgage Bond (Friday Jul 20, 2018)
Japanese Candlestick Chart

The Mortgage Market Guide View...
2 Super Simple Referral Templates

You spend quality time developing clients, keeping your promises and making every effort to ensure their satisfaction for years to come. But when it comes to asking for referrals, it's often harder than it sounds. The next time you have a happy client on your hands, try this no-pressure email template.

Dear Bill, I'm very glad to know you're happy with the results of working with me so far. I was confident I could help, and I'm thrilled that you're pleased with the outcome. I was wondering if you have any [colleagues, friends, family, etc.] [with similar circumstances/needs] who would benefit from our [product/service]. I would love to help them achieve similar results.

If you receive an affirmative answer, offer the following email template the client can use to make the referral connection as simple as possible.

Hi Joe, I wanted to mention to you that I've been working with Mary for [length of time]. We were recently discussing some of the things we've accomplished together, and I realized I should put you two together.

Joe, meet Mary [LinkedIn profile URL].
Mary, meet Joe [LinkedIn profile URL].

I'll leave the rest to you!

This process will take the pressure off of asking, as well as encourage follow-through by clients. All that's left to do is say hello to your new prospect!

Source: HubSpot

Economic Calendar for the Week of July 23 - July 27

Economic Report
Mon. July 23
Existing Home Sales
Wed. July 25
New Home Sales
Thu. July 26
Jobless Claims (Initial)
Thu. July 26
Durable Goods Orders
Fri. July 27
Gross Domestic Product (GDP)
Fri. July 27
GDP Chain Deflator
Fri. July 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.

In the unlikely event that you no longer wish to receive these valuable market updates, please USE THIS LINK or email: hjmays@aol.com

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

Joe Mays
4242 Medical Dr., Ste. 4150
San Antonio, TX 78229

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