Where R Rates & Market Knowledge Information To Chat With & Share With Clients & Realtors
MARKET CHANGES
1 BPS = $10.00 change in cost to borrower for the same rate per 100K in loan size.
Take Coupon % & add .75%ish to know the area impacted on your rate sheets.
GREEN is GOOD for Rates – RED is BAD for Rates
| YESTERDAY CONV 5.5% – UP 21 CONV 6.0% – UP 12 GOVT 5.0% – UP 23 GOVT 5.5% – UP 13 10 YR NOTE – DOWN 6 TO 3.64 DOW JONES – DOWN 92 |
| SO FAR TODAY CONV 5.5% – DOWN 4 CONV 6.0% – UP 0 GOVT 5.0% – UP 0 GOVT 5.5% – UP 2 10 YR NOTE – DOWN 1 TO 3.63 DOW JONES – DOWN 709 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
Today was the big day to see how CPI (Consumer Price Index) inflation was going to come in. It is actually good and then a potential concern.
The markets have been up and down this morning and currently are pretty much where we ended the day yesterday. Our overall inflation number came in as expected at 2.5% year over year and .2% month over month. That is the good part.
Then we got the Core CPI number which is inflation without food and energy included. Year over year it was 3.2% as expected, although it was .3% month over month vs the .2% expected. That annualizes the yearly to 3.6% if it stayed that way.
Although the markets did not hit us hard on that. The issue is that could cause the Fed to not give the full 50 BPS expected cut next week over concerns that inflation increased month over month. Each .1% is very important as that is multiplied by 12 to get an annual inflation number expectation.
The next big deal is how will the 10 Yr Note Auction perform today at noon which our mortgage bonds compete with. This could impact the markets to see what investors think of the CPI number and the demand for bonds.
In other news, the average 30 year fixed rate went from 6.43% to 6.29% which is a large drop week over week. Applications to purchase a home jumped 2% and for refinances increased 1% week over week so keep on those phones and keep on marketing.
Share this with your clients and referral partners to show you are in the know.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
NON-ARMS LENGTH INCOME CHANGES
Effective for new loan applications dated on or after Monday September 16th Freddie Mac is making a change to its non-arms length employment guides and it is good. Fannie is not making the change at this time.
Currently Fannie Mae requires the last two years tax returns if you are employed by a family member or interested party to the transaction.
Freddie in case you did not know only requires 1 year which has been a benefit currently.
Freddie is now allowing for an IRS Wage and Income transcript for the most recent year in lieu of the most recent tax return.
This is a big deal especially when you do not want the rest of the tax return to be put in underwriting.
Here is the deal though. The documentation we receive must validate the previous years earnings and compare it to the current earnings. If the current income is not supported then we will need to use the validated income from the previous year.
This is a great guideline to market to clients and referral partners.
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Jackism of the Day Truths and Thoughts that make you go hmmm
HOW I FAILED MY WIFE
I am writing this a little after 10 PM last Saturday night. Something happened to me just now that I feel I need to write about. Not just for me, but also for someone reading this right now.
My wife and I had our usual Saturday like we normally do. We wake up, have a little breakfast, we go to the market and hit a few stores that we need things from to get through the week.
We get home, I piddle in the community like I love to do then we hang out for the afternoon and then we spend some time with the neighbors hanging out. It was a normal Saturday.
Something happened earlier in the day where I wanted to do something and she was not interested in doing it. I got a little annoyed on the inside and for some reason that little annoyance stuck with me throughout the day.
I didn’t do anything horrible or anything. I just wasn’t the person that she deserved to be with today. I wasn’t the husband that I have been called to be. I was not the godly man that I strive to be. Simply, she deserved better today.
We hung out, we talked, we did things together, we rode on the golf cart and we hung out with friends. We did all of that with half the man I usually am because for some reason I held back today intentionally in loving her the way she truly deserves to be loved. I did not give my wife, my all.
She had gone to bed and I was not tired yet so I decided to watch a show. The show ended and I began to shut down the lights, fold my blanket on the couch, put my cereal dish I just ate in the dish washer : ) And then it caught my eye.
On our kitchen counter we have one of those Frameo picture frames that show digital photos and they scroll through automatically. Our kids got it for us as a present and they found a bunch of old pictures from our earlier years of being married and from when the kids were little.
We have been married 30 years and our kids are 24 and 27 years old.
The picture that showed up was of her and Jacob and Alison when they were really young. She was standing there smiling with Jacob in one arm and then Alison in her other arm. The kids were hanging on to her like she was their lifeline.
The picture then swapped to the next one where she was posing in front of an animal like she was presenting the animal to the world with a big ole smile on her face.
My heart sank, my pride dwindled and my eyes grew a little heavy. I just sat there and looked at her face in that picture and I looked at my children.
Then a flood of memories came flowing through my head of everything she has done for this family. All the sacrifices she has made in being a mom, the school involvement, the rushing to every event they were a part of, the crying and hoping over decisions they made and the words that they spoke. How she never gave up and she always continued on regardless of the circumstances.
Then I thought of all the things we have been through as husband and wife. Both the good times and the bad. She never once left my side nor our childrens. She was and is a warrior for her family. She has been through hades and back just like every mom and dad out there. Just like every one of you reading right now.
I left the kitchen and walked up the stairs with a heavy heart. A feeling of just wanting to hold her and say I am sorry. You deserved so much more of me today. I turned the corner and walked in the bedroom and there she lay on our bed. Completely asleep with a little heavy breathing showing me she was there. There is nothing like stopping and just looking and thinking about the one that you love while they are asleep. It is a peaceful moment and one to be treasured.
The point of this article today is regardless of what is happening today. Regardless of what is happening in the moment and whether someone is right or wrong.
If you are struggling with someone in a relationship and it can be your spouse, your child, a family member or a best friend. Before you put too much weight on what is happening right now, make sure you remember everything you have been through in the past.
Then ask yourself, is what I am feeling right now matter knowing everything you have been through to get you to where you are right now.
There is a good chance we should be running towards them vs away from them. We should be opening our arms to hug them and say I am sorry and I love you rather than turning our shoulder and giving them the silent treatment. We should be cuddling as dusk sets in vs sitting on opposite sides of the couch.
Remember what you have been through. Cherish what they have done for you. Reminisce on the life you have lived together and realize they are far greater and more important to you than anything happening in the here and now.
For me, I am going to bed tonight with a full and grateful heart and more excited than ever to wake up tomorrow morning to tell my bride of 30 years that I love her. Then give her the best Sunday morning hug she has had in a long time because she deserves it more than she will ever know.
PERKS TO GROW YOUR BUSINESS
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HANDY DANDY GUIDES
