Week in Review Bonds

Dated: 04/24/2019

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Last Week in Review: Fed sparks economic reacceleration

Forecast for the Week: Looking for more improvement signs

View: Learn how to use social media to build and create relationships

Last Week in Review 

The economic data coming out of the US this week showed that not only is a recession highly unlikely anytime soon, but the economy is actually reaccelerating from the slowdown seen last Fall.

Back in October and November, the Fed was very hawkish and suggested that three rate hikes would come in 2019. This caused angst and fear that economic conditions would slow to a recession. It also led to a sharp decline in Stocks and consumer confidence.

Fast forward just a couple months to January 2019, and the Fed completely reversed their position, and signaled there is no rate hike coming in 2019 or anytime soon. This new "wait and see" position from the Fed has set off a rally in Stocks and a surge in consumer confidence.

It has also sparked confidence and certainty in the business climate, thereby giving corporations reason to hire and retain employees.

And that was clearly evident this week as we saw yet another decline in Initial Jobless (Unemployment) Claims and the rate at which people are being fired from their jobs.

Bottom line: the economic resurgence has put upward pressure on rates this past week, but they remain near 12-month lows.

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 
Corporate earnings will continue to dominate the headlines, and what companies say about the future could have an effect on the financial markets. 

Housing data along with Gross Domestic Product will be released in the upcoming week, and the markets will find out if the economy continues to strengthen. 

In addition, global economic headlines will help define whether or not the reacceleration of US and global economic data will continue. 

Should it continue, Stocks and home loan rates are likely to edge higher still. 

Reports to watch:
  • Housing data from Existing Home Sales will be released on Monday followed by New Home Saleson Tuesday.
  • On Thursday, Weekly Initial Jobless Claims along with Durable Orders will be delivered.
  • The first reading on Q1 Gross Domestic Product and Consumer Sentiment will be reported on Friday.


Chart: Fannie Mae 4.0% Mortgage Bond (Friday, April 19, 2019)
Japanese Candlestick Chart


The Mortgage Market Guide View... 
Tip: Using Social Media to Build and Create Relationships 

Many of today's relationships exist entirely over the internet. This has proven to be an advantageous way for real estate professionals to create and build strong relationships that could eventually lead to sales.

Become an expert in your neighborhood. Home buyers want to purchase a home from someone that not only understands the market, but the characteristics of the market. Social media gives real estate professionals the opportunity to show off their expertise in a specific neighborhood. By sharing upcoming events, commenting on new stories, and reminiscing about the history of the city, you can position yourself as an expert. When locals have questions or are looking to buy or sell, they are more likely to come to you.

Use social media to target buyers. Facebook has many advanced tools that can connect you with potential home buyers in your area. By using geo-targeted ads with specific interests, you can target the exact type of person who is willing to buy a home in your area.

Connect with warm leads. The buying and selling process can be lengthy. Consumers often start the process by gathering information. From here, it may be weeks or even months until they take action. Most real estate pros are familiar with this, as they gain leads that are 'just looking.' Social media offers the perfect mode for staying connected to those warm leads. Then, once you receive their contact information you can add them to your database and stay in front of them until they are ready to take action.

Social media is a valuable tool for real estate professionals. It allows you to not only create new relationships but to also strengthen them, setting you up as a trusted agent in your area.

Source: Relevance.com

Economic Calendar for the Week of April 22 - April 26

Date
ET
Economic Report
For
Estimate
Actual
Prior
Impact
Mon. April 22
10:00
Existing Home Sales
Mar
NA
5.51M
Moderate
Tue. April 23
10:00
New Home Sales
Mar
NA
667K
Moderate
Thu. April 25
08:30
Jobless Claims (Initial)
4/20
NA
NA
Moderate
Thu. April 25
08:30
Durable Goods Orders
Mar
NA
-1.6%
Moderate
Fri. April 26
08:30
Gross Domestic Product (GDP)
Q1
NA
2.2%
HIGH
Fri. April 26
08:30
GDP Chain Deflator
Q1
NA
1.7%
HIGH
Fri. April 26
10:00
Consumer Sentiment Index (UoM)
Apr
NA
96.9
Moderate


The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. 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, 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.

Mortgage Market Guide, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Market Guide, 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.


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Jim Bernardine

The son of a highly successful REALTOR in the region, Jim grew up around Main Line real estate. He ran his own construction company for two decades before turning to professional real estate sales in ....

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