Where R Rates / MBS Market Update
GLOBAL NEWS HITS
Check out the 10 Yr Note this morning. Down 10 points to 4.41. That is a very big change. That would typically result in better rates across the board.
As you can see conventional did get better and Govt has not really moved.
The reason is that a big bond auction in UK caused some issues globally which sent quite a bit of funds to enter the U.S. Treasury market which is why our 10 Yr Treasury Note did what it did this morning. We got a lot of demand which caused the lower yield in the 10 Year.
Lower yield just means that because their is a higher demand for our U.S. Treasuries this morning then investors do not get as good of a return because their is high demand.
Right behind the 10 Year Note desirable bond is the Conv MBS and then the Govt. That is why U.S. Bonds sold a lot today then Conv Bonds and then Govt bonds were unchanged thus far this morning.
ADP Payrolls did come in this morning at 183K vs 148K but the markets did not overly react due to the global news.
We have more jobs and hourly earnings as we go through the week.
Mortgage applications week over week showed refinance applications increased by 12% and applications to purchase a home dropped by 4% week over week.
The average 30 year fixed rate week over week went from 7.02% to 6.97%. Woohoo! We are back in the 6’s!
Have a great day!
| YESTERDAY CONV 5.5% – UP 3 CONV 6.0% – UP 6 GOVT 5.5% – UP 6 GOVT 6.0% – UP 12 10 YR NOTE – DOWN 4 TO 4.51 DOW JONES – UP 134 |
| SO FAR TODAY CONV 5.5% – UP 22 CONV 6.0% – UP 13 GOVT 5.5% – UP 0 GOVT 6.0% – DOWN 6 10 YR NOTE – DOWN 10 TO 4.41 DOW JONES – DOWN 121 |
GREEN is GOOD for Rates – RED is BAD for Rates
Product & Guideline Highlights
NOTES RECEIVED INCOME
From time to time we come across folks who receive income from a Promissory Note from another individual to themselves.
Sometimes this is a sale of a business or just a personal Note that someone owes them for a multitude of reasons.
This form of income is eligible to count towards a borrowers total income.
In order to count the income most of the agencies are similar in what they will allow.
Fannie, Freddie and FHA require proof of 12 months receipt of the Note income. This keeps people from just creating a Note to show income that may not actually be there. Proving the consistency, amount and receipt for 12 months covers this. None of the agencies state it must be on the tax returns.
All agencies require 3 year continuance of income after the Note date of the new loan. You will be required to supply the Note itself to document the expected payment matches the amount on the Note.
FHA will allow you to average the Note income received over the last 12 months if the Note amount is different each month. It still must be consistently received and in line with the Note but it is allowed on FHA.
VA does not give a required time of receipt. It gives lender discretion. If I was to guess most lenders will still require 12 months as it gives them discretion.
Lastiy, USDA requires 24 months receipt of the Note income before being able to consider it stable income.
This could be a unique marketing piece of income types you can use that you may not have been aware of type message.
Now you know …
Jackism of the Day
PEACE BE WITH YOU
For many years I have been a student of living a life worth living. Living an abundant life filled with the things that bring joy, peace, love and communion with my creator.
That being said I have many moments of this great peace and I have many moments of the polar opposite and it drives me crazy that as easy as it truly is to live a life of abundant peace and joy I still fail at it on a daily basis.
Is it possible to live a life without anxiety and problems and chaos all around us? Of course it is not possible because all of them exist whether we like it or not. On the other hand it is absolutely possible to live through these things with complete peace and joy as we go through the struggles of life.
We are a live reality show. What we see on tv is just a version of our life at home. Life happens every single day and life does not give you a force field where tough things do not happen to you.
Whether you want to call it evil, karma, bad luck or Murphy’s Law which says anything that could possibly go wrong will go wrong eventually.
Since we cannot get rid of these things in life as everyone has them. The only way to true peace and joy is how we live amongst these things that happen to us.
My favorite answer or solution to that is my favorite book that I read regularly which is Brother Lawrence. A monk from the 1600’s that lived the last 40 years of his life in communion with God. It’s a really amazing short and easy book to read of letters if you want to pick it up or put it on your kindle. Just get a version that you can actually understand the words : )
Whether you believe what I do or not there are pieces of the truths that he lives by that can apply to you.
Yesterday, I really stopped and pondered on one sentence he wrote and it gave me immense freedom from the worries, problems and anxiety that comes our ways from time to time.
He said to live your life gently, humbly and lovingly without giving way to anxiety or problems.
That stuck with me all day yesterday. I found that each task I did yesterday I changed my heartset towards how I was living and approaching life. When I added gentleness to every situation and then kept my humility in check and approached each action in a loving manner towards others and myself. The end result was that anxiety and problems although they still existed. I did not give way to them. I did not see them as a hinderance but instead as a joy and pleasure to go through in a gentle, humble and loving way.
Honestly, it came down to it was not about me. It was about the moment and how I could use it for good. For the good of myself, for the good of mankind, for the good of seeing a tough situation end in a positive experience.
Whether you use these words I give you today or another quote that you use as a life verse or truth. Today, do as King Solomon wrote in his book of Ecclesiastes (my favorite book).
Eat, drink and enjoy your toil Everything else is meaningless.
