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% – DOWN 37 CONV 6.5% – DOWN 26 GOVT 5.5%% – DOWN 39 GOVT 6.0% – DOWN 28 10 YR NOTE – UP 11 TO 4.47 DOW JONES – DOWN 17 |
| SO FAR TODAY CONV 6.0% – UP 15 CONV 6.5% – UP 10 GOVT 5.5%% – UP 16 GOVT 6.0% – UP 13 10 YR NOTE – DOWN 3 TO 4.44 DOW JONES – DOWN 28 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
Let’s hope yesterday you started your July 4th vacation and did not look at the markets : ) Not a pretty yesterday for mortgage bonds. Today is much better.
The interesting part is that inflation is still a huge market mover and always will be although we are now having bigger items come in to play. For example the big PCE Inflation number came in as expected on Friday and helped the markets and then we lost a lot of ground over the weekend and throughout Monday.
Between now and November 5th this year we will be experiencing market movement partially due to the manner in which the polls are moving as well as the comments that Trump and Biden make. November 5th is Election Day. The reason it is going to move markets is due to the massive debt that we have obtained and likewise the plans to address that debt and then what are their plans for spending in such a heavy deficit environment.
Keep in mind also that as our polls change other governments globally are monitoring what is happening here in the U.S. We are a global economy which means global events impact our bonds and that impacts our mortgage rates.
Over the weekend and yesterday there is also talk of Japan rerouting a lot of their investments that they put in to the U.S. economy back to their own markets to bolster their economy. In doing this it creates less demand in our markets and less demand means higher rates.
This morning Fed Chair Powell came out saying the usual of higher for longer although said that if we see unexpected weakness in the labor market then they may move a little faster on cutting rates. Interestingly right after Fed Powell was speaking the JOLTS report which measures job openings and job quits came in. Job openings were higher than expected and job quits were less than expected so that is not a weakening job market at least from today’s report.
Make it a great day!
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
UNDERSTANDING NON-PERMANENT ALIEN STATUS
What do you do when a borrower or realtor comes to you and says they have a client not of U.S. origin and not a permanent resident and they have an EAD (Employment Authorization Document) card or a green card or a certain Visa category.
Since many folks do not have these scenarios every day it is easy to not understand who is eligible and who is not eligible for financing and for which products they are eligible.
Conventional is by far the most accessible for non-permanent resident financing although government loans are eligible on a less accessible options. Today is about Conventional, Non-Agency and HELOC’s eligibility.
Today I am sharing a new document that Flagstar released last week. I think it would be beneficial for you to keep this handy for when you come across a client that you are not sure if they are eligible or not.
This document goes over who is eligible, what makes them eligible, what documents you need to verify in order to move forward with the application. For example documents like their Visa, EAD document or passport.
It then gives you the Visa type, a description of that type Visa and whether or not it is eligible for financing and why.
Both Visa’s and EAD cards have a designation on them. The document also goes over DACA individuals which is allowed on Fannie although not on Freddie.
I typically do a high level review for you on these. Today, I think a good review of the entire document would be the best tutorial for you. It is only 6 pages long and will do you great justice to consider reading over it.
These are Flagstar rules which will be very similar to most lenders although that does not mean all lenders.
The more you understand who is eligible the more you can reach out to those in your community to be the go to person for all eligible clients you can serve.
LAWFUL NON-PERMANENT RESIDENTIAL ALIEN GUIDE
Jackism of the Day Truths and Thoughts that make you go hmmm
UNINTENDED DETOURS
One of the most precious times of the day for many people is the beginning of a new day and a new dawn that brings hope and encouragement and drive to make that day a day worth living.
How many times have you started your day saying I am going to accomplish this or I am going to be the person I know I can be and I am going to stay on track and on mission?
Then your day hits and it begins to get bogged down by the tyranny of the urgent and the needs of others that cause you to take unintended detours to places you never wanted to go.
I was meditating this morning and chatting it up with my main man upstairs and He showed me a great picture to help me realize when I am getting off track.
Each morning when we get on the road of life we have a destination that we want to reach. This happens every single day. Whether you think about it or not or whether you just get on the road with no knowledge of where you will end up. You always start your day in some direction.
For me, my direction is pretty crystal clear of where I “want” to go.
As I was meditating on this and Him and I were talking about a life worth living He showed me what happens to me every single day.
You see, as we get on the road of life and we start heading in the direction we want to go that day. You know the direction, due North, with good intentions, a smile on your face, a little warmth in your heart to be who you desire to be and to make a difference in the world.
We are cruising down the road at 70 MPH enjoying ourself and heading in the right direction.
As the Lord was showing me this road I was in the car in the drivers seat. Then all of a sudden my view began to expand a little bit. I was now looking at the car I was in on the road of where I was going and I was watching myself drive down the road of good intentions.
Then He expanded my view a little bit more and now I could see the road I was on, where I was going, although now I could see about a mile down the road ahead of me. I could see an exit coming up and then as He continued to expand down the road I began to see an upcoming round about.
I then began to see where the road came to a four way stop and side roads were there to be able to turn left or right.
He showed me cars ahead of me and I saw their break lights come on, their blinkers going left and right, oncoming cars coming in the opposite direction with their bright lights shining right in my eyes.
This is what happens to us every single day to pretty much every one of us. Sometimes it gets to a point where we say what is the point in trying to get to the destination that I want to go because all of the unintended detours that come our way every day. All of the exits, roundabouts, stop signs, side roads and oncoming bright lights that deter us from staying on the road that we have set out for ourselves to take.
Today is very simple my friends. I was challenged this morning to recognize these unintended detours that life brings our way. To recognize them and then to make the conscious decision that my path is already laid out for me and I know where I want to go and to stay on the road and make it to the place I desire to go.
As you encounter these detours today the first step is to just recognize they are there and even if and when you take these other roads just know that you can always turn around or take another path to get back on the road that you desire to be on.
The only person in the drivers seat is you. You press the brakes, you turn the wheel, you click on the blinkers and you have the sun visor you can put down to not be blinded by others bright lights.
No side road, stop sign, roundabout or exit has any power to make you turn on to them. They will always exist although it does not mean you have to follow them to a place you never intended to go.
Start today by just expanding your view a little bit so you are prepared when they come your way to be able to say not today. Today I am going to end where I set out to go.
PERKS TO GROW YOUR BUSINESS
MBS TRACKING SITE
HANDY DANDY GUIDES
