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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
| LAST WEEK CONV 6.0% – UP 47 CONV 6.5% – UP 31 GOVT 5.5%% – UP 52 GOVT 6.0% – UP 40 10 YR NOTE – DOWN 11 TO 4.28 DOW JONES – UP 189 |
| SO FAR TODAY CONV 6.0% – UP 1 CONV 6.5% – UP 17 GOVT 5.5%% – UP 21 GOVT 6.0% – UP 18 10 YR NOTE – UP 0 TO 4.28 DOW JONES – UP 157 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
Since many of you took the week off last week it is great to know what actually happened from Monday open to Friday close.
Look at the green numbers above. It was a good week for mortgages and it is coming in to what could be an interesting week that will peek this Thursday.
On Thursday we have the big CPI (Consumer Price Index) inflation number coming out which is always a market mover if it comes in at anything except expectations.
Expectations for the Core Inflation which just means excluding food and energy from the equation because they are big items we cannot really control from a consumer perspective. They expect it to be the same as last months reading which is 3.4% inflation year over year and .2% increase month over month which monthly would equate to an annual rate of inflation of 2.4% if it maintained that level.
The overall inflation rate expectation including food and energy is 3.1% year over year with a .1% month over month reading. That equates to a 1.2% annual if we were able to maintain that month over month. Not likely fyi.
Today we have a couple short term treasury auctions and not much else from a reports perspective. Tuesday, Wednesday and Thursday we have a lot of treasury auctions coming our way which will gauge demand and bring competition in to our mortgage bond trading markets.
Tomorrow morning could make some waves in the market. Fed Chair Powell will be giving his semi-annual testimony at 9 AM Central and 10 AM Eastern time. It usually involves a little grand standing and point making and we will see if it has any market movers.
Time to get busy and get some loans in the pipeline. If you have scenarios, question or anything else never hesitate to reach out.
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Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
WHO IS A 1ST TIME HOMEBUYER?
The benefits of the conventional first time homebuyer programs are important to know as well as very important to let your referral partners and potential clients know as they may not know if they are eligible for a 3% down payment.
You have a few options that you may or may not be aware of.
The first one is the standard. If they have not had any ownership in a “residential” property during the 3 year period preceding the closing date of the new home then they are a first time homebuyer. This means no ownership in any investment property, second home or primary residence.
Above is good to share although the next one many may not realize they have an option.
If you are a displaced homemaker or a single parent you can be classified as a first time homebuyer. This means for example if they got divorced and they were joint owners with their spouse on their marital residence and are now purchasing a new home after no longer being married. Then they can be classified as a first time homebuyer.
If they were married and got divorced or displaced or one spouse passed away and they owned the marital home by themselves and their spouse was not on the previous loan and the other spouse had no ownership then they are not eligible to be classified as a first time homebuyer. This is due to their circumstances have changed although they were able to purchase and own a home on their own credentials.
This also applies if they jointly or solely owned a second home or investment property. This would make them ineligible as a first time homebuyer.
99% of scenarios is they cannot have owned a home of any kind in the previous three years or became single parent or divorced or widow and they are departing from a jointly owned residence then they can be a first time homebuyer.
Many folks end up in this situation and are looking for options for low down payment financing. Be the one that lets them know.
Jackism of the Day Truths and Thoughts that make you go hmmm
DON’T MISS THE SHOW
Did you know the greatest show on earth uses no words and has no sounds and yet the voice is heard throughout the entire world.
Have you ever gone to the beach and sat on a balcony overlooking the water? Many of you likely just got back from doing that very thing this past week.
When you look out at the beach and see all the people. How often do you see their chairs facing in the direction of the condos and buildings? Developers spent 10’s of millions of dollars building these high rises or the multi million dollar beach houses where every item was thought through to make it a beautiful beach house for all to see.
And yet none are looking at the things that were made by man. All chairs are facing outward looking at the water. Nothing to see except a great expanse of water and yet we cannot get enough of looking and watching and adoring it’s message that it is sending.
When I see the beach I see it as a massive theater and the stage is creation with all eyes focused outward on what it is doing and what it is saying to them.
What about a sunrise or a sunset off in the distance. People bring their cameras to capture a glimpse of its beauty. You can see them just stop in time and adore the magnificence of what dawn and dusk does to the sky. The colors it turns, the formation of the clouds and the dipping or rising of the smallest portion of the sun coming in to view or being put away for the evening.
The falling of a leaf as coolness brings in the fall with the turning colors of trees. It is awe inspiring and its voice is heard throughout the world.
Over the years I have made it a practice to see a moment like this and to focus in on one thing about that moment. One specific picture I can put as a place holder in my mind and my heart to come visit it any time I feel the need to remind me of a special time in my life.
To this day I recall a piece of grass overlooking a hill with a lake at the bottom of it located at Bonclarken which was a church camp I grew up in as well as led youth groups until my late twenties. I have many fond memories of that place and this is the one picture I have in my mind that allows me to remember what was and to appreciate all who will experience the same thing in that same location.
My point here today is very simple. Spend some time in nature in those special places that bring warmth to your heart. Remember the moments that nature has spoken to you and appreciate the message it has sent you.
We are here on this earth for a very short time. A short moment in time compared to the years that have passed and the eternity to come.
Nature is right outside your door. See what it has to say to you today.
One of my favorite excerpts of a movie is from Holy Man with Eddie Murphy. Great movie by the way. It was a time where life was happening at rapid pace and he showed him that sometimes you just have to walk outside. Look around for a nice piece of grass. Bend down and just smell the grass and appreciate the simplicity and peace of the moment.
I use that phrase a lot. Just go out and smell the grass and let everything else just go away.
Folks, we have a grand theater that we can go to a show any time we like. It is always there and it always has a message. Take a walk and see what it has to say to you today.
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