Where R Rates / MBS Market Update
APPS, AUCTIONS & PERMITS
After another good day in the markets yesterday we are starting down just a bit this morning. Nothing bad and will be pretty much unchanged rate sheets from yesterdays last rate sheet of the day. Assuming no big market changes between now and opening rate sheets.
The average 30 year fixed rate week over week went from 6.93% to 6.88%. As a side note this is great info to share with social media or however you market. Just saying rates have dropped week over week by .05% gets people thinking and hopefully people calling. Use this to your advantage.
Overall week over week mortgage applications decreased by 1.2%. Applications to refinance declined by 4% but purchase applications stayed exactly where they were last week. Lets increase those applications folks.
We also received the building permits number and found it interesting. We were expecting building permits to increase by .1% in January. Instead they declined by .6% which shows a retraction in new permits. Building permits are defined as permits by local jurisdictions before the construction of a new home. In case you are curious what number that is. It is a seasonally adjusted annualized number of 1.473 million.
Yesterday the 70 Billion in 5 yr treasury note auction saw a good demand showing about a B on an A to F rating system. Today we have the 44 Billion in 7 year notes. It has been a good week for auctions thus far and this is good for mortgage rates. Means demand is up for our mortgage securities as well.
Other than that we have 1 Fed speaker and not much else happening today other than new home sales but that is not a big market mover.
Stay tuned to see what happens next!
| YESTERDAY CONV 5.5% – UP 35 CONV 6.0% – UP 19 GOVT 6.0% – UP 15 10 YR NOTE – DOWN 7 DOW JONES – UP 112 |
| SO FAR TODAY CONV 5.5% – DOWN 7 CONV 6.0% – DOWN 3 GOVT 5.5% – DOWN 3 GOVT 6.0% – DOWN 6 10 YR NOTE – UP 1 TO 4.30 DOW JONES – UP 99 |
GREEN is GOOD for Rates – RED is BAD for Rates
Product & Guideline Highlights
SELLER PAID APPRAISAL
When is a seller allowed to reimburse a borrower for the appraisal fee?
This question comes up when you have excess seller credits and you want to maximize the credits to cover all closing costs.
One of the quirks about a seller reimbursing the borrower for an appraisal is that yes the appraisal fee is an eligible cost. The issue is that if the borrower used a credit card they would be technically be giving a borrower money in their bank account that they did not have before because they could keep the credit card debt open and keep the money. This would be ineligible funds in this case. That can make the head spin a bit when you begin to think about it.
Here is the rule or at least the rule that we go by.
For Fannie, Freddie and USDA we do not need to prove the borrower paid for the appraisal with an eligible account like a checking debit card. You can reimburse a borrower even if it was paid with a credit card.
For FHA and VA in order for the seller to reimburse the borrower for the appraisal fee you must first prove that the appraisal was paid with their own funds and not borrowed funds like a credit card.
Just something to keep in mind on FHA and VA when you are asking a borrower for the card number to pay for the appraisal and you know you have a lot of seller credits.
If seller credits do not cover all closing costs you just do not apply them to the appraisal fee and you will be good to go.
Hope this was something new and interesting to learn : )
Jackism of the Day
GET DANGEROUS
Ooooohhhh, this is a good one today. I am excited to write it and I am not even sure what I am going to write : )
I love movies. I love shows. I love them because behind every single scene is a purpose that an actor, director or producer is trying to get across a message or a story that they want us to hear.
Especially the good actors, directors and producers. It is the message hidden in the story that can bring great revelation if you are looking for it.
I was watching trailers of movies last night and although I have already seen the movie Burnt with Bradley Cooper I watched it anyway. Great movie by the way.
Here is a link to the you tube trailer of what I watched.
I want you to take a moment and watch it. It is 1 minute 45 seconds long.
BURNT MOVIE TRAILER LINK
Other than an advertisement for a movie. What did you get out of it? This is where I get a lot of my Jackism’s. Listening to the story behind what I am seeing. This one I absolutely loved!
Here is the part of the trailer that truly moved me.
BRADLEY – The problem with this place “Burger King” is that it is to consistent and consistency is death.
SIENNA – Consistency is what every great chef strives for.
BRADLEY – No, a chef should strive to be consistent in experience but not consistent in taste.
It’s like sex, your always heading to the same place but you gotta find new and dangerous ways of getting there.
This spoke to me because of what I am going through right now. We are transitioning from Mr. Cooper to AD Mortgage right after transitioning from Flagstar to Mr. Cooper. Any transition brings with it opportunity to mix up how you can do business.
The end goal is to be a great AE, serve my clients, move forward my company and be an asset to my community. But I have been doing this for 34 years. I don’t want to be consistent in anything for 34 years putting out the same menu to my clients.
What I want to do is to find new and dangerous ways to get to the end result of a great experience for you, your borrowers and my company.
I want to be excited about opening my office door, seeing my chair awaiting my arrival, loving as my screen begins to glow as I hit the enter button on my keyboard. When I email you a marketing piece or a file update I want to be able to see through the computer and notice a smile on your face as your receive what I offer.
Ahhhhhh, the joy of triumph and the even greater joy of creating that triumph.
How are you doing in your work? Are you getting the results you want to get? Great! Lots of people are doing that. Are you creating new and dangerous and exciting and riveting ways to get there that keep you engaged and keep those you are serving engaged?
Your job is not the problem if you do not like what you do. You are the problem.
Do you wear the same clothes every time you go out to a nice restaurant?
Do you take the same route to the places you drive to regularly?
Do you walk the same path, ride the same treadmill, lift the same weights?
Do you take the same vacations?
Do you get groceries at the same stores?
Do you hang out with the same friends for every event?
Do you watch the same style shows and movies?
In all of these things. When you work, eat, do your chores, workout, vacation, go shopping, hang out with friends, watch tv you do them all with the same end goal in mind. Try getting there in a different way from time to time.
Get creative. Have some fun. Be dangerous!
Whether it is your approach to work, how you greet your spouse and family when you get home, date night, daily habits and everything else.
Get dangerous my friends and light a little fire where nothing has been burning for a very long time.
