Where R Rates / MBS Market Update
RATES UP AND DOWN
Over the last week and specifically over the last few days we have had a lot of movement in the MBS markets with some high highs and some low lows depending on the time of day and then settling down close to where we started the day.
For example, yesterday we had a 28 BPS swing between high and low and 31 BPS swing on Tuesday and the end result was anywhere from 0 to 7 BPS change day over day.
This just means to know where you are at a specific time of day as you have seen lenders have repriced mid day for the better and for the worse. Catching the markets at the right time can be a true benefit to your clients.
If you are one of my clients I will be sending a reminder link out to you on our Level Up Your Knowledge Series which Kaz and I do every Wednesday. Next week is knowing how to read an MBS chart and what to look for and how what you see in the charts below relate to what happens on a rate sheet that you receive each day.
Sorry, this is a perk for approved clients only but glad to have you join if you ever decided to make that move to sign up with me.
We did receive jobless claims in this morning. Most of it was close to where we expected although continuing claims were about 40K more than expected. We also have a 10 yr TIPS auction this afternoon and the Fed Balance Sheet is coming out. None are likely to move the markets too much.
Right now we are adjusting based on technical trading as we are right at a ceiling of resistance not allowing us to break through to that next trading window we so desire to go to get better rates.
Stay tuned to see what happens!
| YESTERDAY CONV 5.5% – DOWN 7 CONV 6.0% – DOWN 3 GOVT 6.0% – UP 0 10 YR NOTE – UP 6 to 4.59 DOW JONES – DOWN 22 |
| SO FAR TODAY CONV 5.5% – DOWN 9 CONV 6.0% – DOWN 9 GOVT 5.5% – DOWN 13 GOVT 6.0% – DOWN 3 10 YR NOTE – UP 5 TO 4.64 DOW JONES – UP 0 |
GREEN is GOOD for Rates – RED is BAD for Rates
Product & Guideline Highlights
GIFTS FOR APPROVALS
One of the most overlooked options to receive an approve eligible on Fannie, Freddie and FHA is the ability to use gifts as financial reserves to obtain approve eligible on AUS findings.
We use gifts everyday for down payment and closing costs. Where we miss the boat is on reserves.
What is one of the number one ways to go from a refer to an approve? Reserves!
Of course, keep in mind that the presence of a gift is a negative hit to AUS risk score. That just means the reserves gift must be substantial enough to overcome the risk.
Some people are blessed with wealthy parents or relatives that want to help them in to a home. Some are not. For those that are you have an option to make home ownership a possibility.
Another reminder on conventional loans that domestic partners aka fiance can be eligible donors. You only need to prove they have a history of living together. If they have lived together for the last 12 months and confirm they will continue to live together for the next 12 months and can document that they have had the same address you can use gift funds from these donors.
Of course, FHA allows for close personal friend to donate funds which is a great option when the donor is not an eligible relative.
Give the gift of homeownership by knowing who and what donors can gift funds for.
Jackism of the Day
JUST LIKE IT
We are in a business that I rarely hear the worlds “I LOVE MY JOB!”
It is just not something that you hear all the time. Sure, you hear it in marketing and online posts and if someone is giving a rah rah speech and there is a place for those comments.
But do you really like your job? Do you really like what you do? Or does it pay the bills better than most industries out there and you happen to be good at it?
Here is a truth that is important to not only make a great living, it is a truth that can help you enjoy it while you are at it.
Wilferd Peterson said “Happiness does not come from doing what we like to do but from liking what we have to do.”
Kind of has a twist to it doesn’t it? If I was to do this all over again I am not sure I would go in to the mortgage industry. It is stressful as all get out, the markets go up and down on a minute by minute basis. You are either a clients savior or their absolute worst nightmare that cannot do anything right.
We have no control over the decisions that borrowers make and we have no way to fix what they have done and many times convince them what is in their best interest to do now.
We compete with 120 thousand other people that can be found with a click of the mouse and most of our competitors do not really even tell the truth about what they are actually offering.
If you have to do something in life, then why not like what you do? It truly is a great question.
I was at my kids house the other day working on part of the remodel and a friend was there with me. This friend tends to have outbursts of cussing and a bit of rage against the tools they are using when something is not going right. I am kind of use to it these days so just another day and they do a great job.
Something was not going very well in lining up a cabinet to be installed. It just would not do what it was suppose to do. This generated a substantial amount of cussing, a thrown tool at that bad bad floor and frustration.
…………. ring ring ………… ring ring ……. ring ring ……. They look at their phone, take their finger and hit accept, put the phone to their ear and in the most pleasant tone said “Hey, what’s going on? ………… Doing great, how can I help?
I started laughing out loud. It just cracked me up. It was instantaneous. Moms and dads you know. Your kid is driving you crazy and then a friend calls and you instantly change your tone and go in to a completely different person as pleasant and nice as can be.
Let’s be honest folks. It’s a choice. Some days you like what you do and some days you don’t. It genuinely is a choice. You can choose at any moment on any given day to decide that you are going to like your job.
I do it all the time. My mindset and heart set is everything for me. It is one of the reasons I love to write my Jackism’s. They motivate me to remember why I do what I do as well as to like what I do.
Folks, we are life changing difference makers in one of the most stressful and toughest jobs out there and we can like what we do.
Today, give it a try. Go ahead. Today, like what you do!
It is all in your attitude. It comes from the heart.
As they say, it is not what goes in your mouth that impurifies you. It is what comes out of your mouth that impacts everyone and everything around you.
If you start liking your job then the person next to you may start liking what they do. If both of you like what you do then those you encounter will see that and they will like working with you.
It is a domino effect that starts with you. Today, like what you do : )
