Where R Rates / MBS Market Update
CHINESE HELPS RATES
Today is my last day of corporate meetings and my morning update will continue tomorrow morning with morning MBS updates at the normal time.
We had a good day in bonds yesterday. Part of it is being driven by technical trading which means the markets hit certain levels and they push through to a new trading window which is what we saw the beginning of today.
There was a story that broke out about DeepSeek which is a new Chinese AI engine startup that could be brought to the market at a fraction of the cost compared to others which is causing a concern over an AI bubble in the stock market.
NASDAQ fell by 612 points and the DOW was up 289 due to the stock make up.
Today we have durable orders and a 7 year Note auction plus a few other reports. No huge market movers. We are waiting on tomorrows Fed meeting, Thursday’s GDP and the big PCE Inflation number on Friday.
If we can get a light inflation number on Friday that could do some great things with rates depending on where GDP comes in.
Let’s see what happens!
| YESTERDAY CONV 5.5% – UP 38 CONV 6.0% – UP 25 GOVT 5.5% – UP 32 GOVT 6.0% – UP 16 10 YR NOTE – DOWN 9 TO 4.53 DOW JONES – UP 289 |
| SO FAR TODAY CONV 5.5% – NA CONV 6.0% – NA GOVT 5.5% – NA GOVT 6.0% – NA 10 YR NOTE – NA DOW JONES – NA |
GREEN is GOOD for Rates – RED is BAD for Rates
Product & Guideline Highlights
MAX # OF BORROWERS
I found this interesting and wanted to share as I did not know this.
To be honest, I thought I had seen more than this a time or two although as I think about it I guess I did not.
The max number of borrowers you can have on a loan is 4 borrowers. The agencies actually do not have a limit on the number of borrowers. It is a system limitation of DO and LP that has a max ability of 4 borrower fields.
Since VA and FHA use DO and LP to run their findings this means they as well have a max of 4 borrowers.
That being said, it is up to each individual lender if they will allow 5 or more borrowers and do the loan as a manual underwrite.
Not that this is a frequent question, it is an interesting piece of knowledge that you may need someday. Typically, when it comes to family homes or multiple couples financing a second home or investment property.
Jackism of the Day
APPRECIATE WHAT YA GOT
One of the trigger words these days is gratitude. It helps with conquering depression, overcoming obstacles and overall mental health.
It is all about realizing what you have and appreciating the things and people around you. It changes your attitude and your mindset in order for you to enjoy who you are and what you have.
I had a great moment of gratitude for my bride over the past couple months. I have always loved my bride but when you see something in someone else many times it hits so close to home that you forget to appreciate what you have sitting right next to you.
A couple that we know is dealing with something that everyone of us knows of someone that has gone through and it usually is not that great of an experience.
They are going through a divorce. For one it came as an absolute surprise and it was not even on their radar. They were told one day that the other one wanted a divorce and there was pretty much no talking them out of it.
The other one likely had been thinking about it for some time and finally decided to make the decision. Once they made the decision they did not want to be talked out of it and they were ready to move on with their life with a new season and new chapter.
You can always listen to both sides and both sides can justify their feelings and their what’s and why’s of what happened and how they feel about it.
What is the same with almost all divorces is it causes a lot of emotional distress, very little gratitude and all the bad things that happened in life seems to be a bigger deal than it was prior to. Bottom line there is typically very little gratitude in a divorce situation.
I would never ever wish anything bad like divorce on someone that is close to me. What I can do is to learn from what they are experiencing. How we can use tough circumstances in others lives to help us grow and appreciate our own.
For many years I did a lot of marriage enrichment. I was and am not good enough to counsel people in an almost divorce situation but I truly enjoyed helping couples go from a good marriage to a great marriage. That is the enrichment part of counseling.
One of the things I always said to my wife after a meeting was, well honey, I love doing this because it always helps me appreciate you all the more. At least we are not going through what they are going through.
Now, I would never reveal anything about my meetings, I always used them to better understand my wife and to love her in ways that I forgot were as important as they truly are based on what we see happening in others lives.
This does not mean you take misfortune of others and say we are better than them so we are a-ok. That is just rude, immature, selfish and not cool.
What you can do is use others misfortunes to be grateful for what you do have and to realize the importance of working on areas that you may need a little improvement.
Think about someone that you know right now going through a very rough time. Don’t compare yourself to them. Just appreciate what you have in that area that others may not have.
When I begin to think of all the things I am thankful about my wife my heart begins to beat a little faster. My mind begins to ponder things that we enjoy doing together. I think of all the fun times we have together. And of course this brings up the male thoughts which is never a bad thing to think about when picturing a bride at their finest : )
Being grateful for my wife not only puts me on my knees to pray over her needs but also to lift her up and pray over her amazing attributes and it allows the Lord to show me the great gift that He gave me in introducing her to me many years ago.
She was the exact opposite of the person I thought I would marry and yet the perfect person for me in all areas of our life. It was not until I became grateful for the little things she does each day did I begin to forget about the little things I was not so grateful for.
The good things far outweigh any bad trait that she may have.
Today, look around you and see all that is happening that is not good. Then make sure you go home and realize the great things that you do have and appreciate how important it is to stay focused on the true things that matter.
