If you can't see the newsletter, or would like to view it online, use this link If you have received this newsletter indirectly and would like to be added to our weekly distribution list, use this link
 
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 Mar 20, 2017 --- Vol. 15, Issue 12
In This Issue
Last Week in Review: Fed Funds Rate increases 0.25 percent, while wholesale inflation and Housing Starts heat up.

Forecast for the Week: Housing news will dominate.

View: Tips to help make your clients your personal marketing team.


Last Week in Review
"Just simple truth and harmony." Glen Campbell. Federal Reserve Chair Janet Yellen had one simple truth that was like music to Stock and Bond markets: "The simple message is the economy is doing well."

When the Fed expectedly raised its benchmark Federal Funds Rate 0.25 percent at its March 14-15 meeting, Stocks and Mortgage Bonds both improved following the news.

The Fed's tame read on inflation and its decision to maintain its balance sheet of existing Mortgage Bonds helped Bonds rally. Meanwhile, Stocks responded favorably to the news that the Fed is planning two additional hikes this year, eliminating some uncertainty.

The Fed Funds Rate, with a new target rate range between 0.75 to 1.0 percent, is the rate at which banks lend money to each other overnight and is not directly tied to consumer products like purchase or refinance home loans. Instead, home loan rates are tied to Mortgage Bond market performance. Home loan rates can move lower when Mortgage Bonds improve and vice versa.

There was good news from the housing sector, as the Commerce Department reported that Housing Starts hit a four-month high, rising 3 percent from January to February to an annual rate of 1.288 million. Housing Starts measure when excavation begins on a new home. Starts on single-family homes rose to a near 10-year high. From February 2016 to February 2017, Housing Starts were up 6.2 percent. The increase is a welcome sign for those in the market for a home as limited inventory has driven home prices up in many areas, discouraging some buyers. Another welcome sign: The National Association of Home Builders reported that its Housing Market Index, a measure of home builder sentiment, jumped six points to the highest level in 12 years!

In economic news, wholesale inflation came in hotter than expected in February, with the year-over-year Producer Price Index reading reaching 2.2 percent, the highest since March 2012. The Consumer Price Index was in line with expectations, falling in February from January to 0.1 percent due in part to lower gasoline prices. Retail Sales also met expectations, though they did decline from January.

For those in the market for a new home or a refinance, home loan rates remain attractive.

If you or someone you know has any questions about current home loan rates or products, please don't hesitate to contact me.


Forecast for the Week
Housing news dominates the week. Will the positive momentum continue?
  • Housing data kicks off on Wednesday with the release of Existing Home Sales, followed by New Home Sales on Thursday.
  • As usual, weekly Initial Jobless Claims will be released on Thursday.
  • The week rounds out with Durable Goods Orders on 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, Mortgage Bonds experienced a nice rebound following the release of the Fed's monetary policy statement. Home loan rates remain in attractive territory.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Mar 17, 2017)
Japanese Candlestick Chart


The Mortgage Market Guide View...
Put "Word of Mouth" to Work for You

According to the Nielsen Global Survey, 83 percent of consumers say they trust word-of-mouth recommendations from friends and family. Your clients can be one of your most powerful marketing tools, and here are some simple ways to make it easier for them to promote you:

Identify your best clients. Send a short email to your database and ask one question: "On a scale of 1-10 how likely are you to refer us to someone you know?" Then, send a Google My Business review link to those clients who respond "9 or 10 highly likely to refer" and request they leave a review. Make this strategy part of your follow-up with new clients to keep your "9 and 10" database growing.

Ask for an intro. Public speaking events and seminars at local organizations are a great way to build local business, and if one of your best clients is part of the organization and introduces you before you speak your credibility will soar. Let your clients know in follow-up marketing that you are available to speak about local trends in your industry.

Host a client appreciation event to deepen relationships with past clients and cement newer ones. Encourage attendees to bring a friend. Events might include a tasting, cooking class, barbeque, movie night, holiday theme and family board game night.

Go the extra mile for your best clients. Call them on their birthday or even send them a cake. They may snap a photo and post it on their social media sites so they can thank you, which could lead to referrals among their friends and family.

These simple ideas can help turn your best clients into your best marketers!

Source: Inc.

Economic Calendar for the Week of March 20 - March 24

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Wed. March 22
10:00
Existing Home Sales
Feb
5.54M
5.48M
5.69M
Moderate
Thu. March 23
08:30
Jobless Claims (Initial)
3/18
241K
258K
243K
Moderate
Thu. March 23
10:00
New Home Sales
Feb
560K
5.92K
555K
Moderate
Fri. March 24
08:30
Durable Goods Orders
Feb
1.3%
2.0%
1.8%
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.

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

Vantage Production, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Vantage Production, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

Equal Housing Lender