Where R Rates & Market Knowledge Information To Chat With & Share With Clients & Realtors
INFLATION-DEBT HIT RATES TODAY
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 10 CONV 6.5% – Up 3 GOVT 5.5%% – Up 19 GOVT 6.0% – Up 18 10 YR NOTE – Down 5 DOWN JONES – Up 151 S&P 500 – Up 16 |
| SO FAR TODAY CONV 6.0% – Down 29 CONV 6.5% – Down 22 GOVT 5.5%% – Down 20 GOVT 6.0% – Down 7 10 YR NOTE – Up 4 DOWN JONES – Down 205 S&P 500 – Down 17 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
Yesterday we had a little bit of green on the screen but this morning we have had some non-bond friendly news which is impacting the markets pretty heavily this morning.
This morning the employment cost index came out which measures the cost of wages and benefits to employers. We expected wages to be up .9% but it came in 1.1% higher and Govt salaries increased 1.4%. That does not seem like a big difference but multiply that times the country and that is a lot of money going out. Good for people but bad for cost of doing business. Benefits expected increase was .7% but came in 1.1% so insurance is getting more expensive and other items.
These are all inflationary items and anything inflation mortgage rates do not like.
Then the WSJ writer they call the Fed Whisperer released an article stating the Fed conversations are going higher for longer which is nothing new but when they say it then it becomes more likely and impacts bonds.
Tomorrow morning at 8:30 the Treasury is releasing the amount of debt they are going to be auctioning off and how and this will happen before rates come out. If it is a really big number that can and will impact the markets so be prepared if you are not locking in on a float today.
We have a lot of Govt spending with all of the conflicts we are contributing to globally and all things domestic. More treasury bonds means more competition against mortgage bonds.
Hang in there folks and lets see what tomorrow brings after the Fed meeting.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
UNRELATED GIFT DONORS
How often does it happen days before closing that a borrower comes up short on funds?
More often than most of us would like to experience. Today is about the reminder that all gifts do not have to come from a family member. You do have options.
Specifically I would like to talk about Fannie and Freddie this morning.
They do have similarities but they also have differences.
DONORS FOR BOTH FANNIE AND FREDDIE
– Relative defined as borrower’s spouse, child or dependent, or another individual who is related to the borrower by blood, marriage, adoption, or legal guardianship.
– Fiance’ or Domestic partner – Need to have lived together and will live together in the new home as well.
– Estate or Trust established by acceptable donor.
FANNIE MAE ONLY
– Relative of a domestic partner. Again, partner must have lived with and will continue to live with in new home.
– Former relative.
– God parent.
FREDDIE MAC ONLY
– Unrelated person with close family-like ties to the borrower.
These gift funds can cover down payment and closing costs but also many do not realize it can also cover reserves which are required per AUS to get an approve eligible.
As you can see this opens the window to a lot more folks that can make a deal work than what most think.
This is a good opportunity to get this information out to realtors and referral partners so they know when they are having a conversation with a borrower that they do have options. Also, for potential clients to know they have more than mom and dad that they can count on.
Jackism of the Day Truths and Thoughts that make you go hmmm
WHAT THEY SEE
Have you ever had one of those moments in life where you experience something so simple and at the same time so special.
As I begin to type this I do not even know where I am going to go with this but their is a lesson in it that I hope will bring hope and joy to you in realizing something great in your life.
This past weekend my wife and I drove our RV up to St. Louis to go to a wedding. My son Jacob who is 27 drove up with his best friend and his best friends wife and decided to stay with us in the RV for the weekend which we loved.
It was Thursday night about 8:30 at night and Misty (my wife) and I were in our bedroom hanging out and watching a little tv before going to sleep.
My son was getting ready to go to bed and came to our doorway and was saying good night.
I said, well son, this is what you get to look forward to when you get married. It’s 8:30, we’re in bed, the dog inbetween us and living it up watching a little that 70’s show and turning in for the night. We are real party animals!
It was at that moment my son said something that I hope I never forget. It brings tears to my eyes as I type these words.
He said, well from where I am looking at it. You’re in a nice RV, your two states away from home traveling, laying next to mom and I hope I have this someday as well. I would say you have it pretty good.
Then he said. I love you guys and good night. I know he did not think anything of what he just said and yet it blew me away.
I sat there for the next hour realizing that I am actually living the dream. Just laying in my bed next to a woman I love, getting to hang with my son and watch a little tv. What more in life can you truly ask for.
It is amazing what others see that we do not realize that we have.
I think the point today for me and the point I want to make to you is this.
Take a few minutes and just look at the things in your life that are really good. Something as simple as laying next to your spouse and realizing how amazing they are. Eating at the dinner table with your whole family. Eating out with friends or extended family that you really enjoy being with. Walking in to work and being welcomed by co-workers that you enjoy being around. Going to a community group at church and being there for one another. Whatever it is that is good in your life.
With all of the frustrations in life that we experience make sure you take the time today to appreciate the simple good things that you have. Better yet, take the time today to tell someone you know what you see in them that is good and encourages you like my son said to my wife and I.
You likely have more going good for you than you may think. Enjoy it and embrace whatever or whoever it is you are doing it with.
PERKS TO GROW YOUR BUSINESS
MBS TRACKING SITE
HANDY DANDY GUIDES
