MMG Weekly: Special Video Helps Ensure Solid Financial Futures

MMG Weekly: Special Video Helps Ensure Solid Financial Futures

Last Week in Review

"THE FUTURE INFLUENCES THE PRESENT JUST AS MUCH AS THE PAST." While getting your mind around that brain-bender from philosopher Friedrich Nietzsche might be a bit of labor...the point of influence is very well-taken. And while the present health of the housing market is certainly influenced by the present health of the labor market - last week brought a bit of welcome good news on the housing front.

The Pending Home Sales number came in with a surprising 8.2% boost in February. Although the report is only a prediction of sales that will close in a month or two, it's a good sign for the housing market...not to mention that it's very good news for those homebuyers who are now under contract in time to take advantage of the Homebuyer Tax Credit before the deadline! Remember, contracts must be in place by the end of this month - April 30th - in order to qualify for the tax credit.

But indeed, the health of housing will be influenced by the labor market - and a lot of work remains to be done in that area of the economy. As you can see in the chart below, the national Unemployment Rate remains at 9.7%, but has moved below the 10.1% rate seen in October.

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Chart: U.S. Unemployment Rate (By Month)

Although the employment picture overall still needs to see some real improvement, there's still good reason to believe that housing will continue to stabilize over the next year, and then begin to move modestly higher. With home loan rates having improved this past week - buyers still have a chance to get into a great home loan rate...and get the Homebuyers Tax Credit before the deadline of April 30th.

SPEAKING OF DEADLINES - DON'T FORGET THAT APRIL 15TH IS THIS THURSDAY. BUT THIS "TAXING" TIME OF THE YEAR IS ALSO A GREAT TIME TO EDUCATE KIDS ABOUT MONEY AND FINANCIAL DECISIONS. FOR A LIST OF MONEY SKILLS EVERY CHILD SHOULD MASTER, CHECK OUT THE SPECIAL MORTGAGE MARKET GUIDE VIDEO VIEW ARTICLE AND VIDEO BELOW.

Forecast for the Week

After a relatively slow economic report week, the calendar picks up again during the week ahead. On Wednesday, we'll see more news about the labor market when the ADP National Employment Report is released with new data on the employment front. Then on Thursday, we'll see another round of Initial Jobless Claims. After last week's increase in new unemployment claims, you can bet the markets will be waiting to see how this report comes in.

Wednesday brings an update on the all-important topic of inflation when the Consumer Price Index is released. The Fed still officially feels that inflation is not a present concern - but some Fed members have expressed their opinions that upcoming monetary decisions should be made with a "data-dependent" eye. This means that the upcoming data - like the Consumer Price Index - will be analyzed very carefully.

We'll also see updates on the manufacturing sector of the economy, with reports on Industrial Production and Capacity Utilization as well as the Philadelphia Fed Index on Thursday.

Finally, Friday brings another dose of news on the health of the housing industry, with reports on the number of Housing Starts and Building Permits recorded during March.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, there has been a great deal of volatility in the market of late - and particularly with the Fed having exited their buying program, the wild ride isn't likely going to be over anytime soon. If you have any questions about home loan rates - and the volatility seen over the past several weeks, just give me a call or send me an email. I'm always glad to hear from you!

Chart: Fannie Mae 4.5% Mortgage Bond (Friday Apr 09, 2010)

Japanese Candlestick Chart

The Mortgage Market View...

6 Money Skills Kids Should Master By Age 18

If the current economic climate has taught us anything, it's that financial education and responsibility are critical in today's fast-paced, wired world. All too often, however, children grow up immune to the financial world around them. As a result, they're often ill equipped to manage their own finances when they become adults and leave home.

With April 15th approaching fast, now's a perfect time to start educating your children about how to manage money more responsibly. Check out this video from Kiplinger.com for 6 Money Skills Kids Should Master By Age 18.

This Week's Economic Calendar

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

Economic Calendar for the Week of April 12 - April 16

Date	ET	Economic Report	For	Estimate	Actual	Prior	Impact
Tue. April 13	08:30	Balance of Trade	Feb	-$39.0B		$-37.3B	Moderate
Wed. April 14	08:30	Core Consumer Price Index (CPI)	Mar	0.1%		0.1%	HIGH
Wed. April 14	08:30	Consumer Price Index (CPI)	Mar	0.1%		0.0%	HIGH
Wed. April 14	08:30	Retail Sales	Mar	1.1%		0.3%	HIGH
Wed. April 14	08:30	Retail Sales ex-auto	Mar	0.5%		0.8%	HIGH
Wed. April 14	10:30	Crude Inventories	4/10	NA		1.98M	Moderate
Wed. April 14	02:00	Beige Book					Moderate
Thu. April 15	08:30	Jobless Claims (Initial)	4/10	440K		460K	Moderate
Thu. April 15	09:15	Capacity Utilization	Mar	73.3%		72.7%	Moderate
Thu. April 15	09:15	Industrial Production	Mar	0.7%		0.1%	Moderate
Thu. April 15	10:00	Philadelphia Fed Index	Apr	20.0		18.9	HIGH
Fri. April 16	08:30	Building Permits	Mar	626K		612K	Moderate
Fri. April 16	08:30	Housing Starts	Mar	610K		575K	Moderate
Fri. April 16	10:00	Consumer Sentiment Index (UoM)	Apr	75.0		73.6	Moderate

[mmgwDisclosure]

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