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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
| YESTERDAY CONV 6.0% – UP 35 CONV 6.5% – UP 28 GOVT 5.5%% – UP 29 GOVT 6.0% – UP 25 10 YR NOTE – DOWN 4 TO 4.43 DOW JONES – UP 162 |
| SO FAR TODAY CONV 6.0% – UP 26 CONV 6.5% – UP 36 GOVT 5.5%% – UP 50 GOVT 6.0% – UP 37 10 YR NOTE – DOWN 7 TO 4.35 DOW JONES – UP 35 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
We are seeing some nice green on the screen. As stated yesterday Fed Chair Powell said we are higher for longer unless we see labor and unemployment wavering.
Today we had ADP and initial jobless claims come in and these are some of many reports that the Fed reviews to see how our labor market is doing. If you look at jobless claims it is very close to expectations although it is a little bit higher than the norm. The part that you cannot see is that initial jobless claims have increased 9 weeks in a row.
This means even though the jobs report showed more openings and less job quits the labor market as a whole is finding it more difficult to find jobs. ADP also came out today and had numbers a little bit less than expected. These two items are indicators of a lessening labor market which impacts FED decisions.
We also have the FOMC meeting minutes coming out today and the markets close at 2 PM. That means there will be minimal reaction time to react to Fed minutes and then closed tomorrow so Friday we could see some early morning volatility depending on what happens between now and then. Take that in to consideration if deciding on whether to lock or not.
Week over week overall mortgage applications are down 2.6%. Refinances fell 1.5% and purchases fell 3.3%. Of course we will see a lot less for this week as well.
Have a great 4th of July!
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
SWEAT EQUITY ON CONVENTIONAL LOANS
Both Fannie and Freddie have rolled out allowing sweat equity programs to be used on HomeReady and HomePossible loans.
I am going to be honest. This is going to take some digging in to in order to find options for your borrowers. Although if you take the time there may be some great opportunity if you live in an area where this is happening.
I only know what our guides show effective this week as well as the minimal amount of research I have completed on it.
The concept is to create more homeownership opportunities for those with limited income. The products that allow for sweat equity are only the HomeReady and HomePossible products at least in the conventional market.
The reason is that it is designed to work directly with home affordable programs in the community. Most of the home affordable community non-profit programs follow the 80% of AMI (Area Median Income) maximum income limits. Those are the same income limits for HomeReady and HomePossible.
HERE IS HOW IT WORKS
Your buyer goes to a non-profit sweat equity program. The one I found that most would know is Habitat for Humanity. Just google Habitat for Humanity Sweat Equity Program. It is actually pretty cool if active in your area. If you volunteer work hours as well as if others volunteer work hours towards your name then you can use the amount of hours x the credit per hour you receive for volunteering then that can be used towards your down payment.
I pulled up my local area and they build houses for folks as well as Habitat for Humanity will even build on your land if already owned. I thought that was pretty interesting. You have to apply for the program and there are qualifications which are pretty much minimum income to afford a mortgage, maximum income as in not over 80% AMI, not currently a home owner and lastly cannot be a registered sex offender. Interesting little add-on to their rules.
I believe Habit does their own financing although I assume their credit hours can be used towards a HomeReady/Possible loan as well. The program for us to approve it must be a 501(c)(3) with a demonstrated history of affordable housing construction and experience in managing volunteers. The volunteer hours and tracking part is vital to know the credit awarded to a buyer.
Do some digging and let me know what you find out. I would appreciate that very much. I will say other than what I just wrote I know nothing else so you are going to have to research on your own : )
HERE ARE OUR GUIDES
CLICK & SCROLL DOWN TO BOTTOM OF PAGE 5
Jackism of the Day Truths and Thoughts that make you go hmmm
3 WAYS TO FIND PEACE
I think we all look for those times in our day where we can be at peace. Where the phone is not ringing, the emails are not saying you’ve got mail and our to do list is not causing anxiety of everything we need to do.
The funny part is that we have absolute control over having peace in our day. We simply just do not take the time to experience it.
There are three things you can do to create peace in your life. Honestly, you can put whatever word you want in there and these three things will help you get there. You can replace peace and put in joy, hope, love, patience or whatever you want more of.
Here are the three things you can do.
#1 – Eliminate Hurry
#2 – E L I M I N A T E H U R R Y
#3 – E. L. I. M. I. N. A. T. E. H. U. R. R. Y
This was part of our Sunday sermon this week on creating boundaries in our life and I have not been able to shake the truth of how this impacts so much of our life.
What are some things that you do in your life every day that make you smile? Is it something you do in the mornings when nobody else is around and it is your one time to just be alone or at peace. A long hot shower, your time to get ready while nobody is bothering you, your drive to work or it may be when you are having breakfast with your kids or your spouse and you just sit across the table and look at their faces when they do not notice and are just thankful they are part of your life.
Is it a part of your day at work that you actually truly enjoy doing or something in the evening time when you get to sit back and be thankful or participate in something you love to do. There are a thousand ways in which we find peace and joy and contentment in life. Yet, we allow hurry to take that little piece of time that we treasure so much.
For me, I have a few things I love to do each day although one of them is super special and on a regular basis I allow hurry to either speed up the process or sometimes skip over it completely and when I do it changes things. It is a piece of my day I cannot get back.
As many of you know I write a love letter to my wife every morning and have for years and it is waiting for her as she wakes up and begins her day. That is a special time for her and for me although it is the time right before I write that letter that I treasure even more.
Before writing her love letter I put my journal away and I sit back in my chair, I close my eyes and then I spend time thinking of and praying over my wife. I think of what she went through yesterday and I lift her up for what she will experience today. It is during that time I can reflect on how my actions impacted her both positive and negative and it allows me to see her in the light that only the Lord can shine upon her. It affords me the opportunity to see how special she is in so many ways that I would never see if I did not take that moment to just think about her and to see her true inner beauty. I think of everything she did for me the previous day and are thankful for the little things that she does.
I then open my eyes and I write my letter to her.
Taking the time to do this creates margin in my life. I typically do it almost every day although I do not always take the amount of time to truly embrace that moment. When I do my heart swells with love and it is moments like this as I write these words that I yearn to do it ever more often.
What in your life creates those special times and those special moments? How much more would you experience them if you were to eliminate hurry from your life.
They say money is the root of all evil and there is some truth in that. Hurry is equal to if not more the root of all evil. It robs us of experiencing life in the moment and of being where our feet are.
Hurry is always looking for the next to do item on our daily list and thinking about the one after that. When you eliminate hurry you get the same amount done although the end result is that you actually enjoy what you are doing.
As you go through your day today and experience something that you enjoy doing. Stop for a moment and just say nope, not this time. I am going to enjoy this moment and not worry about what comes next. Morning will be here again soon so make the most of the day you have right now.
PERKS TO GROW YOUR BUSINESS
MBS TRACKING SITE
HANDY DANDY GUIDES
