“OUR GREATEST GLORY IS NOT IN NEVER FALLING…BUT IN RISING EVERY TIME WE FALL.” (CONFUCIUS) And the people of London showed inspirational courage after a terrible bombing attack last Thursday. Although the financial markets around the world were rattled, they also showed resilience on Friday and recovered Thursday’s declines.

US Stocks rallied higher at the end of the week on strong economic data, including the unemployment rate dipping to 5%, its lowest level in almost four years! The tight labor market means that employers will have to pony up more money for their new hires, and also to keep their present employees from being wooed away. This of course leads to more money for consumers to spend, which helps the economy keep chugging along even in light of recent higher oil prices.

But the good economic news does raise concerns about inflation…the arch enemy of Bonds and interest rates. This concern caused home loan rates to edge a bit higher by the end of the week, about .125% across the board.

ARE YOU LOCKED IN A CELL? WE’RE TALKING CELL PHONE PLANS HERE. THERE’S A GOOD CHANCE YOUR MOBILE PHONE PROVIDER’S CONTRACT HAS A “LOCK UP” PERIOD ON YOUR ACCOUNT, WHICH CAN MAKE GETTING OUT EARLY VERY COSTLY. DON’T MISS THIS WEEK’S MORTGAGE MARKET VIEW ON HOW TO GET THE BEST MOBILE FOR YOUR MONEY.

After the excitement of last week, Traders will welcome the lack of economic news for the first part of this week. But as they digest all the recent market action, the current weakness in Mortgage Bonds that led to an increase in home loan rates can’t be ignored. Let’s take a closer look.

Remember that when Bond prices move higher, this means home loan rates improve, and when Bonds move lower, home loan rates worsen. In the chart below, notice how the green “candles” on the far right of the chart have very long “wicks”. This means that although Bond prices traded higher throughout each particular day, they were pushed back lower by the closing bell and closed near their worst levels of the day. It is also quite interesting to see how the Moving Averages were the exact points at which Bond prices reversed and moved lower, typically a sign of market weakness.

Later this week, Traders will get a read on the strength of the consumer by way of the Retail Sales Report. And as always, close attention will be paid to the latest news on inflation with the Consumer Price Index (CPI) and Producer Price Index (PPI) Reports. In the absence of major news in advance of these releases, home loan rates will likely remain stable.

EVER TRIED TO SWITCH YOUR MOBILE SERVICE MID-CONTRACT…AND WONDER WHAT HAPPENED TO ALL THE NICE “FRIENDS AND FAMILY” AT YOUR SERVICE PROVIDER?

They don’t want to lose you. But since your cell phone number is now portable, it should be easier than ever to simply switch carriers to take advantage of better coverage or lower prices. Yet many mobile phone plans have a contract period of two years, and getting out of a plan early can cost from $150 - $200, which may negate your savings gained from making a switch.

With so many phones and plans, how can you make a choice you will not regret before your contract is up? Ask yourself - “Do I just have to have the latest bells and whistles on my phone?” If the answer is yes, you will probably be better off paying a bit more up front for a shorter lock in on your contract. On the other hand, if you are not a super heavy cell phone user, or the longer you can live with the same phone, the more up-front savings you can gain from accepting a longer contract.

But even after you have decided on a contract period, there are so many different plans to choose from…is there an easy way to do this? Yes! Take a look at www.myrateplan.com for help on cell phones, providers and plans in your specific area. It’s fast and easy to use. Best of all, it can help save you some cash.

Additionally, if you’re looking for the newest equipment models on the market as well as reviews, go to www.phonescoop.com.

The focal point for Traders this week will center on the Retail Sales and Consumer Price Index reports on Thursday, but Friday will provide a bevy of economic data as well.

Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.

For the week of July 11 – July 15