Search This Blog

Monday, December 21, 2015

Mortgage Bond Market Analysis - Twas the Monday Before Christmas...

Twas the Monday before Christmas, only four days to go, 
My loan was submitted but I didn't know.
Should I lock or float?  What will rates do?
The anxiety is unnerving...if only I knew.

I looked high and low to see what I could find,
Nothing but sales pitches and fluff and things of that kind.
I asked friends and family about what they thought,
Some said to lock, some said I should not.

I turned to my Realtor to see if he could provide a clue,
But he said that's not his job, that's for loan officer to do.
So I called my loan guy who didn't hesitate.
He said "Lock right now; rates are great."

He talked about mortgage bonds and the charts he used,
He sounded like he knew, but I was sure confused.
So I asked him more questions and got great answers galore,
He gave me all the information I was seeking, and then gave some more.

I'm so happy I used him, he got me the perfect loan.
He helped me understand my choices to best afford my home.
He taught me financial concepts and strategies no loan officer ever had.
He even taught me more than my dear old dad.

He referred great professionals to help me in my quest,
To make sure my financial future would be the absolute best.
Now when people ask what mortgage guy is most prominent in my head,
I tell them only one name comes to mind - that name is Jed.

That's my little marketing poem - I hope you got a chuckle out of it along with the message that I will go above and beyond the typical loan stuff.  As I've mentioned before, I always try to add value to my referral partners and my clients.  My financial background as a Series 7 Licensed Representative when I was with Fidelity Investments helps me provide a financial perspective to clients that adds significant value to their transaction.  Helping them to lock at the right time gives them a better chance to get the best rate as opposed to those who claim to have the best rates - anyone can make that claim.  It takes an understanding of the mortgage bond market to deliver the best rates more often than not.

Referring financial professionals like CPAs, financial planners and estate planning attorney's is another way I add value to clients and referral partners and it helps complete the process for my clients.  Whether it's teaching clients the best strategies for real estate investing or the financial concepts behind the optimized down payment amount, I provide my clients with the expertise they need to give them the best chance at success while helping generate more business for my referral partners.

The bond market now and this week:  As I mentioned in the poem, now is a good time to lock.  After a 27 basis point increase to the FNMA benchmark bond on Thursday, the market provided some follow through on Friday with a +13 day and it is currently up another 9 basis points.  I expect the week to be quiet with many traders taking an early holiday.  As I said before, lighter trading can mean more volatility so a bad apple can spoil it for the bunch.  Floating isn't a bad thing at this point since the Fed has made its decision and the GDP numbers we'll see tomorrow aren't likely to be a big mover at this point.  As always, if you do float, make sure you keep a close eye on the market so that you can move quickly to lock if traders start selling.

Make it a great day and contact me if I can help with anything - 801-853-8720 or 702-812-1214.

No comments: