Where R Rates / MBS Market Update

RATE RELIEF THIS MORNING

Wow! What a day yesterday. It will be one to be remembered for a long time.

At one point we were down 100 bps in mortgage bonds and recovered to only being down 22. I say see that red screen below as a very nice green screen from yesterday.

Dow has never gone up 2,962 points in one day in it’s history. That was a 7.87% increase in one day. Then yesterdays 10 year auction came in very well. Then it hit. Trump paused tariff from those who did not retaliate against us and then hit china with 125 tariff and then they hit us with an 84 number. We start the day down 707 on the DOW and I am sure that will be all over the place this morning. This was expected after such a big gain.

I have no idea how that is worthy of a 3,000 point stock day gain but it was. The 3,000 gain today is still 1,738 points lower than our YTD high but any form of good news causes a mass run to the markets. So that one bit of news made investors buy in every market. Both bonds and stocks.

The buying has continued into this morning with some nice gains and good for mortgage rates. We got CPI in this morning which is usually a huge impact in the bond markets as it is all about inflation numbers. Everything is taking a back seat to tariffs right now and global news.

The good news is that CPI (Consumer Price Index) came in lower than expected. A lot in part due to energy costs coming down. Overall a great number for inflation this morning and part of what you are seeing with our morning gains.

Year over year we are at 2.8% inflation and month over month we were at .1% which multiplied by 12 months is 1.2% annual inflation. Of course, none of these tariffs have come into play with these numbers yet so time will tell.  

Hang in there folks and manage the ride!

GREEN is GOOD for Rates – RED is BAD for Rates

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Product & Guideline Highlights Ad Mortgage Products

INCOME CALCULATOR

I believe I should send this out once per month since it is such a valuable tool that so many are not taking advantage of.

Some time ago Fannie Mae released their income calculation tool. It is very simple to use and all you need is an NMLS ID to input the information.

Currently it is for self-employment income. Fannie is also working on releasing one for complex situations, variable income like hourly, bonus, OT and commission as well as Farm income.

Not to be beat. Freddie Mac just announced they will have their own Freddie Calculator. When theirs rolls out they are offering self-employment calculation and W2 and paystub calculations.

Both Fannie and Freddie offers reps and warrants for these calculations to some companies as long as the information was input correctly.

Either way, when you have a question on S/E just go to the Fannie site and input the info. It is no charge, no signup and you just enter your NMLS ID.

You can find the site here. Freddie’s site to come May 11th.
FANNIE INCOME CALCULATOR

Since being created in 2024 over 107,000 reviews have been completed with 552 lenders using the calculator with 4 different ways to access the information. All of this can be found at the link above.

Jackism of the Day

WHAT’S YOUR BUSINESS?

Some of the best aha’s come from the most unexpected places.

One of my colleagues in the industry had reached out to me to see how I was doing and how the transition to AD was going. I let her know some of the highs and some of the lows and appreciated her thinking of me.

She then gave a great nugget of truth I thought would be fun to share. Thanks Jill for the words of wisdom!

Jill simply replied with this.
“Your business is relationship – so it shouldn’t matter what name is on the door.”
That made me smile real big like : ) 

What a truth that is to live by no matter what your business is or what part of your life you apply it to.

She is correct. My entire business is relationships. I am going to be who I am regardless of what the name on my door reads. As a matter of a fact. I am going to be the person I am even if my title is different than what I have been before.

In relationships, the second greatest commandment is in order to be first you must be last. That is the wisdom of in order to get where you want to go in life then you must serve others to the best of your ability and to put others interests ahead of yours. Somehow, it always works out for the good when you take care of others.

Are you going through any life changes? Work, relationships, family changes, community changes, season of life changes? Is anything around you changing in one way or another?

Guess what. That does not mean you have to change. It just means you need to be you in a different environment than where you were before.

A wonderful truth is to realize that you cannot change that which you cannot change so for those parts of life just embrace them. Stressing, fearing and worrying about things out of your control is a complete waste of time.

Control to the fullest that which you can actually control. Nobody other than you is you. So be you, regardless of what name is on the door.