Provided to you
by
Lee McLain
Contents
Lee McLain
First Federal Bank
Office #816-245-4220
Cell #816-728-7700
lee@kcmetrohomeloans.com
NMLS:680316
• Weekly Review: week of February 9, 2015
• Mortgage Rate Forecast with Chart
• Economic Calendar - week of February 16, 2015
• Federal Reserve FOMC Meeting Schedule
• Road Signs - Why Granite Countertops Are the Durable and Affordable Option
for Your Property
Weekly Review
Stronger than expected economic growth in Europe, rebounding crude oil prices, and a
ceasefire agreement between Ukraine and Russia worked to push the stock market higher this
past week at the expense of the bond market.
News of ongoing negotiations between the newly installed Greek government and the
European “Troika” for a restructuring of Greece’s debt also may have played a role in higher
stock prices. The Troika, a 3-part commission currently made up of the European Central
Bank (ECB), the European Commission (EC), and the International Monetary Fund (IMF) that
is responsible for making recommendations on policy to help solve the Euro debt crisis, still
insists that Greece needs to extend its bailout program to receive the next installment of
financial support. However, financial news company Bloomberg reported that Germany is
ready to moderate its negotiating stance while Eurogroup chief Jeroen Dijsselbloem and Greek
Prime Minister Alexis Tsipras agreed to begin a "technical assessment" of the common ground
between Greece and the current program in preparations for the next Eurogroup meeting of
the eurozone finance ministers on Monday.
A reported year-over-year increase of 0.9% in the European GDP and a year-over-year
increase of 1.6% in German GDP suggested the Eurozone economy was strengthening more
than expected. Furthermore, crude oil prices bounced back from below $50 per barrel to close
at $52.65 on Friday and this helped to support the broader stock market along with equities in
the energy sector. Stocks received an added boost when leaders from France, Germany,
Russia, and Ukraine struck a ceasefire agreement, set to go into effect on Sunday. The
benchmark S&P 500 Index responded by setting a fresh closing record high at 2,096.99.
For the week, the FNMA 3.0% coupon bond lost 56.3 basis points to end at $101.58 while the
10-year Treasury yield increased 8.9 basis points to reach 2.05%. Stocks ended with the
NASDAQ Composite gaining 149.44 points, the Dow Jones Industrial Average adding 195.06
points, and the S&P 500 increasing 41.52 points.
To date for 2015, and exclusive of any dividends, the NASDAQ Composite has gained 3.22%,
Dow Jones Industrial Average has added 1.09%, and the S&P 500 has gained 1.82%. The
national average 30-year mortgage rate rose from 3.72% to 3.76% while the 15-year mortgage
rate increased to 3.05% from 3.02%. The 5/1 ARM mortgage rose to 3.13% from 3.12%. FHA
30-year rates increased to 3.35% from 3.25% and Jumbo 30-year rates increased to 3.80%
from 3.75%.
Mortgage Rate Forecast with Chart
The FNMA 3.0% coupon bond ($101.58) lost 56.3 basis points during the past week while the
stock market advanced with the S&P 500 setting a new record high. Mortgage bond prices
retreated Monday through Wednesday and tried to reverse higher on Thursday but failed to
follow through higher on Friday. Friday’s candlestick took on the appearance of an inverted
hammer candlestick, which theoretically is supposed to be a bullish reversal signal, but ends
up being a bearish continuation pattern 65% of the time. The bond remains “oversold” but is
still trading on a buy signal generated from Thursday’s positive stochastic crossover. The
bond looks like it is consolidating for a push higher in the near future, but remains technically
weak at the moment so we could see worsening bond prices and mortgage rates before prices
and rates turn around and improve for the better.
Chart: FNMA 30-Year 3.0% Coupon Bond
Economic Calendar - for the Week of February 9
First, the bond and equity markets will be closed on Monday for Presidents' Day. For the
remainder of the week, the economic calendar features the New York Empire State
Manufacturing Index and the NAHB Housing Market Index on Tuesday; Housing Starts,
Building Permits, the Producer Price Index, and the latest set of FOMC Minutes on Wednesday;
followed by weekly Initial Jobless Claims, the Philadelphia Fed Manufacturing Index, and Crude
Oil Inventories on Thursday. Economic reports having the greatest potential impact on the
financial markets this coming week are highlighted in bold.
Date
Feb 17
Feb 17
Feb 17
Feb 18
Feb 18
Feb 18
Feb 18
Feb 18
Feb 18
Feb 18
Feb 18
Feb 19
Feb 19
Feb 19
Feb 19
Feb 19
Time
ET
08:30
10:00
16:00
07:00
08:30
08:30
08:30
08:30
09:15
09:15
14:00
08:30
08:30
10:00
10:00
11:00
Event /Report /Statistic
NY Empire State Manufacturing
Index Housing Market Index
NAHB
Net Long-Term TIC Flows
MBA Mortgage Index
Housing Starts
Building Permits
Producer Price Index (PPI)
Core Producer Price Index (Core
PPI)
Industrial Production
Capacity Utilization
FOMC Minutes
Initial Jobless Claims
Continuing Jobless Claims
Philadelphia Fed Manufacturing
Index of Leading Economic Indicators
Index
Crude Oil Inventories
For
Feb
Feb
Dec
02/14
Jan
Jan
Jan
Jan
Jan
Jan
1/28
02/14
02/7
Feb
Jan
02/14
Market
Expects
9.0
58
NA
NA
1,070K
1,065K
-0.4%
0.1%
0.4%
79.9%
NA
295,000
2,398K
9.8
0.3%
NA
Prior
9.9
57
$33.5B
-9.0%
1,089K
1,032K
-0.3%
0.3%
-0.1%
79.7%
304,000
2,354K
6.3
0.5%
4.868M
Upcoming Federal Reserve FOMC Meeting Schedule
March
17-18 (Tuesday-Wednesday)*
April
28-29 (Tuesday-Wednesday)
June
16-17 (Tuesday-Wednesday)*
July
28-29 (Tuesday-Wednesday)
September
16-17 (Wednesday-Thursday)*
October
27-28 (Tuesday-Wednesday)
December
15-16 (Tuesday-Wednesday)*
January
26-27, 2016 (Tuesday-Wednesday)
* Meeting associated with a Summary of Economic Projections and a press conference by the Chairman.
Road Signs – Why Granite Countertops Are the Durable and Affordable
Option for Your Property
By Antoinette Ayana
Adding stone surfaces to your home will increase its value, and while these surfaces are good
home investment, these projects can be a big undertaking. No matter how big your space or
budget each decision must be researched and investigated, and when you're considering
materials for your new hard surfaces, granite countertops are setting the standard in quality.
Granite is a long lasting, beautiful, and natural option that will leave your space looking and
feeling sharp, sophisticated, and finished. It also holds its value, so you can expect a 100%
return when you decide to make the investment. When put to the test against other materials on
the market, granite comes out on top.
Quartz
Compared to other materials such as quartz, granite is a more affordable material for counter
surfaces. Quartz tends to run $70 to $95 per square foot while stone countertops are an
average of $60 per square foot. Quartz requires resin filler because it is not made of one
complete piece, so your quartz surface will generally be 93% quartz and 7% resin. Meanwhile,
stone comes in one full slab and requires no resin filler. Quartz also contains more radon, a
radioactive gas that has been linked to lung cancer, than its stone counterpart. Although the
difference is marginal, the less exposure to the gas you have, the safer it is for you and your
family.
Concrete
Another popular material for countertops is concrete. While concrete tends to be more budget
friendly, your granite countertops are going to stay intact and beautiful for the long haul while
concrete is easily stained due to its porous nature. With concrete surfaces, spills need to be
cleaned up immediately and cleaning needs to be done diligently and regularly. This tendency
towards staining also means the material has to be resealed more often and requires more
upkeep from the homeowner.
Concrete tends to be less heat resistant than its full stone counterparts, meaning one must take
more care in the kitchen by keeping trivets and heat guards handy. While every material will
eventually wear, concrete tends to wear unevenly and more quickly, meaning the money you
saved in the initial investment has to go towards constant maintenance in order to keep it looking
good.
Butcher-Block
While butcher-block countertops add a warm, vintage feel to any space, does it hold up to
granite countertops when it comes to upkeep and durability? No. While butcher-block does add
a different look, the maintenance necessary to keep it looking nice is much more intensive than
that of stone. The wood tends to stain easily, wear unevenly, and even retain odors. You also
cannot use knives on butcher-block as they will cut and mark easily. Repairing these marks is
then a process that includes sanding, staining, sealing, and more for each blemish.
When it comes to the value of your property, granite countertops offer the most bang for your
buck. Although the front-end investment may be greater than the competition, you can count on
granite for ease, visual appeal, durability, and easy upkeep, while also expecting a higher return
on your investment.