Also in the news last week, Fannie Mae reported that its national housing survey showed that 43% of those consumers polled feel that home prices will rise in 2013. However, 20% said that their financial situations will deteriorate this year due to the debt ceiling worries and the rise in taxes. And in news overseas, European Central Bank President Mario Draghi said that he sees further risks to the region's economic outlook.
So what does this mean for home loan rates? Stocks did reach five-year highs last week--at the expense of Bonds and home loan rates--after the Fiscal Cliff deal was reached and investors felt that the pace of economic growth would increase due to the deal passing. However, uncertainty both here at home (due to the debt ceiling worries) and overseas (due to the continuing debt crisis in Europe) means that investors will likely continue to see our Bond market as a safe haven for their money. This could ultimately benefit Bonds--and home loan rates, which are tied to Mortgage Bonds--in the process.
The bottom line is that home loan rates remain near historic lows, meaning now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.
- Retail Sales will be released on Tuesday and investors will look to see if consumers opened their wallets during the holiday shopping season.
- We'll get a double dose of inflation news this week, with the wholesale-measuring Producer Price Index on Tuesday and the Consumer Price Index on Wednesday.
- Housing Starts and Building Permits will be reported on Thursday along with Weekly Initial Jobless Claims.
- We'll also see a double dose of manufacturing news, with the Empire State Index on Tuesday and the Philly Fed Index released on Thursday.
- To close out the week, the Consumer Sentiment Report will be released on Friday.
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 were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.
Getting into that peak state of performance some people call "flow"--where ideas come easy and productivity seemingly doubles, or triples if you're lucky--is an elusive state for many office workers. Basex, a research and advisory firm, estimated the cost of workplace interruptions such as unscheduled calls, emails, and instant messaging at around $588 billion per year in lost productivity for the U.S. economy.
And that's not all. New York Times bestseller Brain Rules, written by developmental molecular biologist Dr. John Medina, points out...
- A task that's interrupted takes 50% longer and has 50% more mistakes than an uninterrupted one
- On average, an interrupted worker takes 23 minutes to get back to the original task, and an additional 30 minutes to return to the "flow" state
- 80% of the time workers will return to an interrupted task later in the day; in 1 out of 5 occurrences, however, they will not be able to return to it the same day
- Frequent task changes without completion significantly increases stress levels as opposed to handling things to completion one at a time
- Checking email or taking calls only during certain times of the day
- Keeping your door closed
- Wearing headphones (even if nothing is playing)
- Making sure every staff member knows the true cost of their interruptions