Where R Rates / MBS Market Update

RATES HIT HARD

Last week was not a good week for mortgage rates. I wish I could say it was an event or headline news or some really bad reports that came in. In reality, it is the pressure put on the technical trading side of the markets. The infamous what goes up must come down.

We sat at a ceiling of resistance after gaining a lot of ground starting on November 25th and we surged ahead until the markets hit a point where they said ok, it is time to sell. And they did. Then they did it some more and we were hoping we would hit a floor of resistance but the markets plowed right through it last Wed, Thu and Fri. 

We still have more room to fall if we were to get back to the Nov 25th range. Hoping we can stop the downfall a bit this week. This week is a big week in the markets.

Today, the markets have hit a bit of resistance which is good. Hoping we can hold our ground although headline news will play a part in the markets this week.

Of course, we have the Fed meeting Tuesday and Wednesday. We pretty much know they are going to cut rates. That is not the big deal. The big deal is what they call the summary of economic projections. 

This is where they give their view on growth, inflation, unemployment and rates. Rates is an important number due to if the define a rate that neither hurts nor helps the markets that will identify where they are headed.

This week we also have GDP, Retail Sales and Manufacturing. Big news week before the world pretty much takes off the following two weeks.

Hang in there folks and let the people know what is happening in the markets.

GREEN is GOOD for Rates – RED is BAD for Rates

Click Here to Understand BPS

Product & Guideline Highlights

HOMEREADY GRANT CHANGES

Last year Fannie Mae put out a $2,500 grant to coincide with VLIP (Very Low Income Purchase) program through the HomeReady product.

The program requirements were that they must have an AMI (Area Median Income) of 50% or less and be eligible for the HomeReady product. These loans are eligible to be delivered up to Feb 28th 2025 that are purchase ready so not likely for closings on that day.

Effective March 1st 2025 they have decided to continue this grant for one more year. There is a caveat to it though.

In order to qualify you need the 50% AMI and HomeReady eligible and now they are adding at least one borrower must be a first time homebuyer. As if the AMI vs 1st time homebuyer products were not confusing enough. They are now adding more rules to the guidelines.

The good news is they are extending the grant for your borrowers.

The $2,500 grant can be used towards closing costs and/or down payment funds. 

The lender (Mr. Cooper) gives the borrower a $2,500 credit and then when we deliver the loan through to the Fannie Mae Guaranty the lender is reimbursed for these funds.

Share this news with your referral partners who work in the lower income market as well as clients that may benefit as they begin to look for a new home in the new year.

Jackism of the Day

MR. ROGERS MOMENTS

Our days are filled with special moments that we can use to set ourselves up to be in the right mindset and right heart set to make life much more rewarding.

I grew up watching Mr. Rogers from time to time. I have always loved how he started his day. I think to this day it is why when it is chilly outside like it is this morning. I start my morning with putting on a cozy pullover and some slippers. It sets the tone as I go in to my quiet time sitting room and begin my day.

If you are not sure who Mr. Rogers is or want a blast from the past. Here is a reminder of how he started every show. It just makes me and probably you smile even if you will never admit it.
https://www.youtube.com/watch?v=FhAJnx5uwUU

There is something sacred about certain times of days. It is sacred because they are moments that it is only you and your decision of how you are going to prepare and use the opportunity to have a reset in case your day started out not so great.

These moments can be your morning ritual as you get out of bed, what you do when you enter your office and sit down at your desk to start your day. How you leave your desk if you depart for lunch or how you return to your desk as you begin the second half of your business day after lunch. It is how you leave your work environment and it is especially sacred how you go from work to home life as you begin your evening or family time. Then of course it is how you prepare as you go to bed so that you are ready to wake up the next morning.

These are all opportunistic times of the day to continue on or to start over if you have gotten off to a bad start.

Mr. Roger’s transitions from his travel clothes to a new ambiance for his time he spent with his neighbors. For him it was a clothing change that set the tone. From a coat to a cardigan and from business shoes to more comfortable and friendly walk around shoes. It was an ambiance change.

I often use these times of days to reset and to re-energize myself. I am a big believer in the truth of “Be Where Your Feet Are”. To be present in the moment and to stay relative to what you are trying to accomplish at any given time of day.

When working, I work hard. When with my wife, I am focused on her and not work. When in my quiet time, it is just me and God and when taking a break to just chill, it is just me, my guitar and music. Each time has it’s own routine that makes me comfortable in my shoes and comfortable in the atmosphere of where I am and what means the most to me at that time.

If you just go from one part of the day to the next without properly prepping or resetting then you lose the opportunity to be present in the moment vs dragging all of the same emotions, stresses, fears, drama from one part of your day to the next. It is like your the engine in a train and you just keep adding cars to the end of you and you begin to get dragged down.

What if for every part of your day you detached yourself (the engine) from the rest of the cars for a moment and were free to get on a new set of tracks. Then begin adding the train cars you need to attach for the next leg of your journey and you leave the rest behind.

How much of a load would be lifted that you normally are hauling around through all parts of your day. if you took the time to detach, reset and then start fresh with your sacred times of day you may find the opportunity to truly enjoy the moments we have been given to experience.

Give it a try. Have a Mr. Rogers kind of day.