Fed rate hike helps home loan rates improve

Jeffrey Loyd Mortgage Loan Officer Phone: +1 212 243-0373 Fax +1 347 686-6406 NMLS #:: 410097 jloyd@unfcu.com www.unfcu.org/JeffreyL
In This Issue Last Week in Review: Spring rates revisited Forecast for the Week: Santa Claus rally anyone? View: Learn How To Make Your Brand More Compelling Last Week in Review "Hut one, hut two...HIKE!!!!" It was all about the Fed this past week. On Wednesday, they "hiked" the Fed Funds Rate by 25 basis points (0.25 percent). That rate affects short-term loans like auto and credit cards what it doesn't affect are home loan rates. Home loan rates actually improved to the best levels since April. Why? The Fed Statement suggested that inflation is moderating and remains beneath the Fed's target of 2 percent year over year. If Inflation remains low, long term rates - like mortgages, will also remain relatively low. Also helping home loan rates improve was a big sell-off in Stocks. The Stock market hated the Fed Monetary Policy Statement which suggested more hikes next year, despite acknowledging low inflation and slowing economic conditions around the globe. Stocks don't like Fed rate hikes as they weigh on economic growth due to added costs of financing. Bottom line - home loan rates moved nicely lower this past week representing the best time since spring to either purchase or refinance a home. 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 The financial markets enter what is typically one of the slowest weeks of the year as the Christmas holiday is celebrated. The Stock and Bond markets will close early on Monday and will be closed Tuesday for Christmas. Economic news will be on the light side with housing data and Consumer Confidence as the highlights. However - the Bond markets will have to contend with the Treasury Department auctioning off a total of $113B in 2, 5 and 7-year Notes on Monday, Wednesday and Thursday. If the buying appetite at these auctions are not good, home loan rates might suffer. A "Santa Claus rally" for Stocks usually takes place in the month of December, generally seen in the last week of the year from December 26 to January 2. We shall see if that comes to pass and that too could negatively impact home loan rates. Reports to watch: Housing data will come from Wednesday's S&P Case-Shiller Home Price Index, followed by New Home Sales on Thursday and Friday's Pending Home Sales. Consumer Confidence will be delivered on Thursday and is running at sky-high levels. Chart: Fannie Mae 4.0% Mortgage Bond (Friday, December 21, 2018) The Mortgage Market Guide View... Tip: Branding Checklist: Is Your Brand Compelling? Your brand is the company story that tells the world who you are, what your company stands for, and what solutions you can provide for your customers. Since branding is so crucial, how do you know if your current branding is working for you? Make sure your brand is compelling by following a few simple tips. A compelling brand evokes images of who your company is and what you do in the minds of your customers and prospects. The only way to create this connection is by developing a memorable and genuine brand story. Your brand story should convey your company history, values, and purpose in a way that connects with customers. Develop Your Brand's Story To develop this brand story, you must first know your company and have a clear vision of what you hope to achieve. Next, you need to define the audience you are targeting and ensure that the solution you are providing is one they can benefit from. Even though you want to portray your company's expertise and skill, you also want to make sure it is simple and easy to digest, while maintaining a human connection. Once you have your brand story fully developed, you need to keep it consistent along all of your marketing channels. Not being consistent with logos, designs, colors, and messages can cause confusion in your customers' minds, and you will hardly leave a memorable impression. With proper planning, development, and consistency, you can create a compelling brand that will help you stay at the forefront of consumers' minds and ahead of the competition. Sources: Forbes, Business 2 Community Economic Calendar for the Week of December 24 - December 28 Date ET Economic Report For Estimate Actual Prior Impact Wed. December 26 09:00 S&P/Case-Shiller Home Price Index Oct NA 5.1% Moderate Thu. December 27 08:30 Jobless Claims (Initial) 12/22 NA 214K Moderate Thu. December 27 10:00 New Home Sales Nov NA 544K Moderate Thu. December 27 10:00 Consumer Confidence Dec NA 135.7 Moderate Fri. December 28 10:00 Pending Home Sales Nov NA -2.6% Moderate This credit union is federally insured by the National Credit Union Administration (NCUA). 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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.