MMG Weekly




Robert Paola

Vice President - Residential Lending

Valley Central Bank

Phone: (513) 702-2029

Fax (513) 247-0978

NMLS #: 754101


In This Issue  









Last Week in Review: US/China uncertainty

Forecast for the Week: Trade and Fed Minutes highlight the week

View: Tips for writing an offer letter for your clients








Last Week in Review  










The biggest story in the financial markets and around the globe is the ongoing US/China trade negotiations.

At the moment, there is no resolution and it appears there will be no resolution for at least several weeks as the US and China are not expected to talk again until the G-20 Summit June 28-29.

The uncertainty surrounding the talks helped home loan rates improve this week, and are at lows seen in January 2018.

The US, China and the entire globe would benefit from a deal and should it happen, Stocks will likely recover all of their recent losses and then some. At the same time, should the story drag on and escalate as higher tariffs are instituted -- it would have a negative effect on global economies and Stocks may suffer as home loan rates improve further.

Looking at the US economy, it continues to do very well. Walmart posted incredibly strong corporate earnings this past week. Seeing they have $500B in annual sales -- if Walmart is doing well, the US economy is doing well.

In housing news, April Housing Starts and Building Permits came in higher than expectations, providing further evidence of confidence in the sector.

Bottom line: The backdrop to housing could not be much better. The economy is strong and home loan rates are historically low. Today presents an incredible window to consider buying or refinancing 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  









With little major economic data and the end of earnings season in the upcoming week, all attention will be focused on the aforementioned US/China trade negotiations.

The week will be holiday-shortened with the Bond markets closing early at 2pm ET on Friday heading into the unofficial kickoff of summer, Memorial Day weekend. The Stock markets will undergo a full session on Friday.

This coming week, the markets will see readings on New and Existing Home Sales as well as Durable Orders, which are items that have a lifespan over 4 years.

The Minutes from the May 1 Fed meeting will be released on Wednesday afternoon at 2:00 p.m. ET, and could always carry a surprise comment and thereby surprise reaction.

Reports to watch:

  • Existing Home Sales will be released on Tuesday followed by New Home Sales on Thursday.
  • Weekly Initial Jobless Claims will also be released on Thursday, with Durable Orders on Friday.


Chart: Fannie Mae 4.0% Mortgage Bond (Friday, May 17, 2019)

Japanese Candlestick Chart








The Mortgage Market Guide View...  









Tips for Writing an Offer Letter for Your Clients

Writing a strong offer letter is an effective solution for making your client's offer stand out in a competitive housing market. Here are a few tips for writing the best offer letter possible to help your client purchase their dream home.

Make it stand out. First, you need to make sure that your offer letter is formatted in such a way that it will stand out. You can use professional but attention-grabbing fonts and headers so that sellers will take notice of your client's letter. This is important because so many homebuyers are turning to offer letters to help them get their offer accepted.

Include the details. Next, you should explain why your client wants to buy the home. Make sure to include as much detail as possible so that the seller will understand exactly what it is that your client loves about the home. Describing what your client loves about the home can be very flattering to the seller and can help to create a personal connection that may encourage the seller to accept your client's offer.

Put it in print. Finally, you should print out the offer letter so that you can give the seller a hard copy. Most people will send their offer letter by email, so if you deliver a physical copy, the seller may have an easier time remembering your client when it comes time to choose which offer to accept. 

Writing a notable offer letter can be a very effective strategy for getting a seller to accept your client's bid. Keep these tips in mind so that you can write the strongest letter possible.

Economic Calendar for the Week of May 20 - May 24



Economic Report






Tue. May 21


Existing Home Sales






Thu. May 23


Jobless Claims (Initial)






Thu. May 23


New Home Sales






Fri. May 24


Durable Goods Orders















The material contained in this newsletter has been prepared by an independent third-party provider. The content is provided for use by real estate, financial services and other professionals only and is not intended for consumer distribution. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.


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.


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