Where R Rates / MBS Market Update
OIL & ENERGY MOVING MARKETS
GREEN on all fronts this morning and last week
Last week was a great week overall. It was even a good time to check your 401K and investments if you have stocks in them. Last week the stock market was up 1,563 points and mortgage rates got a decent little boost.
We still have a ways to go to get to where we were in early December. We are about 100 BPS worse than we were then so not too bad although a ways to go.
Our best rates we have seen are from Sept of last year and we are about 220 BPS worse from where we were then.
I am sure we are going to see some volatility in the markets with Trump now in office and all of the immediate changes he is implementing that will impact the financial markets.
We have a slow week from a financial reports perspective. No huge indexes coming out this week. We do have jobless claims on Thursday which does not move the markets too much and PMI (Purchasing Managers Index) for global markets which can move the markets although nothing like jobs reports or inflations.
This means that global and domestic news as well as technical trading where the markets work through ceilings and floors of support as investors trade will rule the roost this week.
This morning we are seeing nice gains partially from Trump moves where the markets will be seeing energy and oil come down. As oil comes down mortgage rates usually follow as it is a big indicator of inflation. With us pumping more that means cost of oil can be less which means energy costs can be less which means inflation can be less.
The markets are going to continue to fluctuate depending on what could happen. The markets are always forward thinking.
Let’s enjoy it while we can folks!
| LAST WEEK CONV 5.5% – UP 72 CONV 6.0% – UP 53 GOVT 6.0% – UP 28 10 YR NOTE – DOWN 13 DOW JONES – UP 1,563 |
| SO FAR TODAY CONV 5.5% – UP 31 CONV 6.0% – UP 19 GOVT 5.5% – UP 25 GOVT 6.0% – UP 9 10 YR NOTE – DOWN 5 TO 4.57 DOW JONES – UP 277 |
GREEN is GOOD for Rates – RED is BAD for Rates
Product & Guideline Highlights
FHA S/E CHANGES
Knowing what you can and cannot add back on Schedule C, 1120 and 1120S is important when figuring S/E income on FHA loans.
All products are definitely not the same. FHA made changes that can be effective immediately.
On Schedule C borrowers the old FHA guides did not show that business use of home was eligible as an add-back to net income.
When looking at Schedule C income you can add back depreciation, depletion, business use of home, amortization and casualty losses. Of course, you can add back a % of mileage as well if they wrote off actual miles.
On the 1120 and 1120S front previously the guides stated you could add back depreciation and depletion. In order to align with the IRS guides you can add back depreciation, depletion, amortization and casualty losses.
For the 1120 C Corp it is above but on the casualty losses you can only add back non-recurring casualty losses.
These are not huge changes although they are changes that could make or break a deal that you may not have known about.
Jackism of the Day
IT’S YOUR FAULT
Today is kind of a double truth to get you out of a rut or a mindset that you believe you are not capable of finding a solution or a way out of something you are experiencing in life.
In order to find freedom from something that is holding you captive or the way that you find success in an area of your life is that the first step must be to refuse to be held captive of the environment in which you find yourself in. Whether a predicament or a rut you find yourself in that you want to find a way out or a way to be successful where you currently are not.
I like to listen to people that are having conversations around me. I am always amazed how much whining and complaining people do about their circumstances. How many people have wronged them. The people, events or circumstances that are blocking them from being able to move forward.
I just sit there and listen or just ponder to myself knowing if I said something it would fall on deaf ears or they would find a reason or excuse to discount me or someone else that is trying to help them.
If you have a problem. No matter whose fault, no matter who caused it and no matter what the situation is. If you want to fix it or find success in an area that you are floundering at right now then you have to accept it is 100% your fault.
Yep, if your marriage stinks it’s not even 50/50 your fault and theirs. It is 100% your fault. If your numbers are in the tank it is not your processors, owners, pricing, products, competitions fault. Nope, it is absolutely 100% your fault.
If you are freaking out due to circumstances that you found yourself in and you cannot see a way out then realize that the reason you are in these circumstances is completely your fault.
If you want to stop being held captive to your environment then you must accept that whatever the situation, whatever the reason, whatever the problem that it is absolutely without a doubt 100% your fault. Nobody else is to blame in any way, shape or form. You are the only one to blame.
Ok, Jack, please explain why it is my fault? The answer is very simple.
When it is your fault, then you can fix it.
When it is someone else’s fault you cannot fix it.
Life can be hard at times. There is no doubt about that. If we did not have pain and suffering we would never experience perseverance or determination or experience the joy of completing something you never thought you were capable of.
Problems are the beginning of finding peace in the end.
Look at the things in your life and ask yourself what you believe is not in your control because someone else or something caused it? Now think of ways that you can take control of the situation and act on it. If you are the only person that can fix the situation you are in, then what would you do about it?
No blaming, no excuses, nobody else’s fault. You are the sole person that can fix a situation. What do you do?
It is amazing how easy it is sometimes to release yourself from captivity from your environment when you realize you actually do have the power to do so.
Relationships, circumstances, goals. You’re in control of your destiny. Go do something about it today. You will be amazed at what you can accomplish when you stop blaming the world for your situation.
