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THIS MORNINGS QUICK LOOK

1.  TOUR DE MTG FINANCE – The FED Speaks
2.  PRODUCT HIGHLIGHT – Jumbo Pricing
3.  MARKETING – 4 Steps To Connecting With Anyone

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THE FED SPEAKS

The big deal yesterday was what will happen at the FED meeting and then what will FED Chairman Powell say which always moves market.

So, the end result is that Chairman Powell was actually kind of low key and comforting on what the FED was going to do with short term rates and of course you know they did raise it .25 and stating likely 7 more coming. BUT, they did not say 11 more and they did not say 50 to 100 bps at a time which is good.

The markets actually came off of their lows but the overnight results will be the tell tale sign. This gives overnight to give people time to hash over and review what was said which will paint the picture come this morning when markets open. 

The confusing part has to do with the GDP and their projections. They lowered the GDP estimate to 2.8% vs 4.2% for when they do the rate hikes. Basically, GDP is the production of goods and services of the US over the given year and by raising rates they slow down the economy but they are saying it will slow down but it is not going to crush the economy. Analysts do not necessarily agree with that but that is their stance.

Our hope is the 10 yr Note will come down some and give us some breathing room but we will see what the markets say this morning.

Inflation is still an issue and Powell did not really address the China Covid issues which will definitely impact supply.

Another helpful item was they did not really address the balance sheet reduction. What that means is they buy a lot of MBS every month and now they are not which makes bonds less in demand causing rates to increase but when they say balance sheet reduction that means when they receive a payoff of MBS mortgages then they turn around and re-invest that money in the MBS market. Reducing the balance sheet just means they will not re-invest and reduce the amount of investments which again creates less demand. That actually helps the bond market since it may not happen as quick as intended which is good for us.

The markets will dictate what the FED does so anything can happen but they must respond based on what the markets do. Glad I am not in their shoes.

So, welcome to the first rate hike in 3 years and some more to come.

Product & Guideline Highlight Knowledge That Gives You An Edge Over Your Competition

JUMBO PRICING

Ok, so I know I talked about this yesterday but it bear repeating and I did receive more clarification.

If you are pricing a jumbo loan I strongly urge you to price out our 10 yr arm which is almost the same as a fixed. 

It was close to a 1.5% difference in rate and is better than the 5 or 7 year arm. It has to do with an inverted yield curve where long term and short term returns are close to the same. That is for another day but it makes sense and you should take advantage of it.

Our 10 yr arm locks have skyrocketed compared to our fixed so don’t miss the boat. I am doing a lot of j

Marketing Ideas And Opportunites Little Things That Can Make A Big Impact

4 STEPS TO CONNECTING WITH ANYONE

Today is a quick reminder how to connect with new clients and to be honest how to connect with anyone in your family, community, work or any place. 

Everyone of us wakes up every morning, we all go pee, we all brush our teeth (I hope), we all take a shower and look in the mirror and say “Wow! Dang I look good or whatever you may say” and deal with the stress of life. 

What we do not realize is what I am about to say is how to be a real person who gives a crap about someone else and not just another strategy to get people to do what you want them to do.

The 4 steps are:
IDENTIFY
RELATE
SHARE
INVITE

IDENTIFY
I see you, I hear you, I get you, identify with what they are going through, let them know you are here for them. Trust always starts with empathy.

RELATE
After identifying what they are going through they need to know you know how they feel. Let them know you have had common experiences and that you have experienced what they are experiencing. It impacted you as well. Most of us have all experienced the same thing. Nobody is special.

SHARE
Now explain how you are with them and share how you experienced what they are going through and this is a great time to explain why you are a great fit to help them fulfill their needs.

INVITE
This is the call to action. This is the I can help you with this by doing this. This is not the sale but instead think of it as the successful solution to what they are going through and you get to be a part of it.

It’s that simple. Try it in one of your conversations today with anyone. Heck, try this one with your kids when they come to you with something they are going through. First, they will say who are you then it may end with an amazing conversation.

Turn Times As Of This Morning Lookin Good!