Jack's Morning Update

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day CALCULATING INFLATION MANUALLY This is day 3 of 3 to understanding how inflation is calculated.See last Wed and Thu for days 1 and 2. First thing you need to go to is this link for aHISTORICAL CONSUMER…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day MBS UPDATE Over the last 2 days we have lost almost 100 bps due to the fear of inflation. They do think this is a temporary reaction but there are no guarantees. We have blown through 3…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day INFLATION AND DEFLATION EXPLAINED Over the next few days I am going to explain how inflation is calculated and how you can calculate it manually. You can go back as far as 1913 and track the exact…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day MBS UPDATE Below is the last 30 days MBS graph.  The purple line that the MBS bumped up against which allowed us to lose ground yesterday was the 100 day moving average.  The line we are heading…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day HOW DO BONDS ACTUALLY WORK? One of my goals for this daily update is to educate piece by piece by simplifying how the market works so you can grow your business by being more knowledgeable to those…

WHAT IS CINCO DE MAYO?It is the annual celebration to commemorate the Mexican Army’s victory over the French Empire at the Battle of Puebla on May 5, 1862 and a great way to boost revenue for Mexican Restaurants across the country : ) THIS MORNINGS QUICK LOOK MBS Pricing, Market…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day LOOK AT THE INDICATORS What a beautiful chart to look at to understand why it is important to watch the MBS.  Reminder the higher the green and red candlesticks the better your rates. You want them going…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day SIMPLIFYING APR TO BORROWERS APR is the effective interest rate when you borrow funds in the loan.Note rate is the interest rate for the full loan amount. APR uses amount financed vs gross loan amount to calculate…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day THE FED SPEAKS Well it was good news yesterday when the Fed spoke. Basicly, they said we are going to keep Fed Fund Rate near or at 0 and will continue the asset purchase program.  That means…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day WHAT IS HEDGING When a lender like Flagstar Bank or any large lender who does bulk business which means they originate, underwrite, close and lock the loan post closing then sell to lenders like Flagstar via a spreadsheet…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day UPDATE ON MBS PRICING I have not updated lately on the actual MBS. Last Tuesday we broke through the 50 day moving average which means pricing is better now than it has been on an average in…

THIS MORNINGS QUICK LOOK MBS Pricing, Market Conditions/Information Learning Something New Every Day WHY SERVICERS DISLIKE EARLY PAYOFFS You have likely heard the term servicing values which at a basic level means if I buy the servicing rights for a pool of loans then what rate of return will I…