The Fed throws a party for Stocks and Bonds

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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: Why home loan rates will stay low Forecast for the Week: Things slow down a touch View: Learn how to use Facebook ads for lead generation Last Week in Review The Fed met this past week. As expected, they didn't hike rates and the Fed Statement was very "dovish," suggesting that rate hikes will be off the table for most, if not all, of 2019. The Fed looked to "muted inflation" and slowing economies abroad as reasons to show "patience" in hiking rates further. In response, home loan rates revisited the best levels of 2019 this past week. This new position by the Fed is a complete departure from where they were just a few months ago when Fed Chair Powell was forecasting 3 rate hikes this year. People owning Stocks are feeling wealthier as shares hit a multi-month high this week after rallying 14% since Christmas. This is good for housing. Job creations and wage growth are also fundamental to a healthy housing market and last week's terrific Jobs Report showed steady growth in both. More good news -- the Mortgage Bankers Association just released a forecast suggesting that 30-year mortgage rates will remain below 5.00% through 2020!!! 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 upcoming week will be a dramatic change from last week with no major risk-filled events like the Fed meeting and Jobs Reports. There are just a few economic reports to be delivered, though the markets will have to contend with the ongoing U.S.-China trade issues along with another looming government shutdown on February 15. The Bond markets will also have to digest a total of $84 billion in Notes and Bonds being auctioned by the Treasury. At times, these auctions can limit rate improvement. Overall, with the Fed now more patient and inflation a non-issue we should not expect home loan rates to meaningfully tick higher anytime soon. At the same time -- with the U.S. economy continuing to be on solid footing, it's likely that further rate improvement will be limited. Reports to watch: The ISM Service Index will be released on Tuesday, followed by Productivity on Wednesday and Weekly Initial Jobless Claims on Thursday. Chart: Fannie Mae 4.0% Mortgage Bond (Friday, February 1, 2019) The Mortgage Market Guide View... Tip: How to Use Facebook Ads for Lead Generation If you're looking to generate more leads for your business, one option to consider is Facebook ads. Facebook ads for lead generation can help you build an audience of people interested in what you have to offer. If you've never tried using Facebook ads for lead generation, these tips can help you get started. Know Your Ideal Customer. The first step to creating an enticing Facebook ad is to know who you're trying to target. Therefore, you need to know your audience well. What kind of problems do they have? How can you help solve those problems? You can gather this information by surveying your current customers and checking out conversations in relevant Facebook groups and online forums. Create an Enticing Lead Magnet. Facebook ads are more effective when you give something away that your target audience will love. Ideally, this free resource, also known as a lead magnet, will help get your customers one step closer to solving their problem and let them see you as an expert who can guide them the rest of the way. Checklists, videos, or short e-books often work best as lead magnets. Choose Your Targeting Options. When you're ready to create your ad, you need to decide who you want to see it. The great thing about Facebook ads is that you can choose from 50 different filters to pinpoint exactly who sees your ad. With these simple tips, you can use Facebook ads to improve your lead generation, reach your ideal customer, and get them to convert into paying customers. Sources: Social Media Examiner, Wishpond Economic Calendar for the Week of February 4 - February 8 Date ET Economic Report For Estimate Actual Prior Impact Tue. February 05 10:00 ISM Services Index Jan NA 57.6 Moderate Wed. February 06 08:30 Productivity Q4 NA 2.3% Moderate Thu. February 07 08:30 Jobless Claims (Initial) 2/02 NA NA Moderate This credit union is federally insured by the National Credit Union Administration (NCUA). Accounts and shares are insured by the Administration to the maximum insurance amount for each member or shareholder. Unless otherwise noted, fees may be associated with certain products and services. Certain UNFCU products and services are subject to approval. Federal and state laws may limit the availability of certain products and services in select areas. 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