Where R Rates & Market Knowledge Information To Chat With & Share With Clients & Realtors
TOUGH DAY FOR RATES
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% – Down 115 CONV 6.0% – Down 88 CONV 6.5% – Down 65 GOVT 5.5% – Down 101 GOVT 6.0% – Down 81 10 YR NOTE – Up 19 DOWN JONES – Down 422 S&P 500 – Down 49 |
| SO FAR TODAY CONV 5.5% – Up 5 CONV 6.0% – Up 1 CONV 6.5% – Up 5 GOVT 5.5%% – Up 6 GOVT 6.0% – Up 9 10 YR NOTE – Up 0 DOWN JONES – Down 71 S&P 500 – Down 1 |
THINGS TO SHARE WITH CLIENTS & REFERRAL PARTNERS
Yesterday was a doozy of a day and did not end well. It started with CPI being higher than expected and got it all started. Then mid-day we had a horrible demand for the 10 Year Treasury which is who we compete with. When they have low demand we have low demand and have to pay investors more to sell our bonds to them.
Lastly, the Fed Minutes were released and it is definitely looking like higher for longer especially with inflation being stagnate or increasing even a little bit.
Today, we do have a bit of green on the screen but we were hoping that we would recover some of the knee jerk reaction we had yesterday which is common. Not so much though. PPI (Producer Price Index Inflation) which is inflation from the producers side came in as expected for the most part today so we are thankful for that. Year over year we were at a core of 2.4% which excludes food and energy which is much better than the consumer side.
Jobless claims came in right at expected as well so no market changes with that this morning.
Today we have three Fed speakers and a 30 year bond auction at noon CST so let’s hope for some demand.
Stocks continue their decline on news of inflation. Wait a little bit before checking your investments if you have not checked in awhile : )
Share this information in your conversations to be the one in the know.
Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition
97% LTV PRICES BETTER THAN 75% LTV
Borrowers can be kind of finicky with what they are looking for. Some look at the rate only and some look at the payment and some look at the PMI.
I always preach to know your LLPA’s and this one LLPA is very important to know and to understand.
Check out this LLPA and then specifically check out what happens as LTV increases from a very low LTV up to 75 – 80% LTV across all credit score tiers and then notice what happens after 80% LTV. Click on the matrix and it will open up to see better.
Of course, the difference is in the MI payment. But do not forget the option to pay down a mortgage after the second mortgage payment to remove MI or keep their money and invest or use for other options.
The key here is to know when to present it to a borrower in order to offer a lower rate that others may not be able to offer. It could be as much as .25 – .375 better rate and if it puts you in to a better pricing coupon it could be an even larger difference depending on the yield you need.
The point today is to pull up an actual rate sheet and look at all of your LLPA’s (Loan Level Price Adjustments). You may be surprised at what you find.
Also, remember to price different scenarios and present it to your borrowers and let them make the decision. If you are offering multiple options where another LO is offering one option. This will show you have more to offer and more likely to earn their business.
In the chart when you have a negative symbol in front of the pricing that means it is hitting you to the negative on your pricing.
Jackism of the Day Truths and Thoughts that make you go hmmm
SHAKE THE DUST OFF
Yesterday I had a moment about realizing the number one person stressing me out in life can be my own self. I realized I would write about dealing with others who stress you out today.
I was having my quiet time and came to the realization of how to deal with people in your life who cause frustration and do not add joy to your life.
I am going through the book of Acts right now in the Bible and don’t worry what I am referencing today will apply to anyone regardless of what you believe.
It is a point in the history where Jesus had died and rose and He sent out the disciples to the surrounding cities and countryside that were forming the first churches of the day.
For a moment just pretend you are one of the disciples and you are told to go and tell entire cities about what you know and then you need to explain to them why you believe what you believe and encourage them to see things your way.
Kind of like what you do every time you go home to your family and want to make a change and you need to explain it to your family so it all makes sense and they desire to follow your lead. Or if you are making a change at work to do things a different way and it means changing how people think. Then you have to present the why and the how that makes sense to buy in to what you are doing. Or to a client that you are pitching an option for financing that they may not understand like a 2/1 buy down or bank statement product or a HELOC to do something they did not realize they could do.
The disciples were just presenting a viewpoint that many followed because of how they did it but then there were the folks that were dead against it and said heck no. They stirred up the crowd and drove Paul and Barnabas out of town.
So, they got up the next day and did this. They went to the departure point of the city and shook the dust off of their feet against those people and were filled with joy and the spirit.
Ahhhh, that is an AMAZING truth for all of us as it pertains to those in our life that cause friction, frustration and stress in our lives.
In those days when you went to the entrance of a city and shook the dust off your feet that meant that the words they were presenting were not being heard by those receiving it and that the likelihood of anything good coming from it is no longer there at this time and they have done their part. They are cleansed of anything that happens to those people and they can just move on.
Here is the point. When you have done all that you can do to cure a situation or appease a person or deal with a person that is stressing you out in life it is ok to shake the dust off your feet and realize you have done all that you can do and depart filled with joy and a spirit of whatever fulfills you. Move on, worry not, smile on the inside and know that you have done all you can do and do not carry the burden with you as you go.
As it also says do not throw your pearls to the swine. Jacks interpretation is stop wasting your valuable and good time on someone who will never change.
This does not mean that you give up or an excuse to remove yourself from an important relationship forever, especially your marriage or children. It just means realize sometimes you can only do what you can do and you can be at peace with it and move on with your life even if the other person never will. Especially when it is someone not that important to your overall life.
If you have someone that just popped in to your mind then know as of this moment you can set yourself free. It’s your choice. Like I love to say, “It’s my joy, and you cannot have it”. Then I shake the dust off my feet and journey on with a smile on my face and abundance in my heart.
PERKS TO GROW YOUR BUSINESS
MBS TRACKING SITE
HANDY DANDY GUIDES
