Phil Grossfield's Blog

Weekend Developments:

Fair Food. Lemonade, Corn-On-The-Cob, Funnel Cake With Strawberries and Whipped Cream, Chicken Strip, Bacon Doughnut, Fried Zucchini, Gatorade, And a Chicken Taco.  As far as fair food goes, this was the tamest I’ve ever been. The bacon doughnut was pretty good!

Butt-Head. At one point this weekend my 5-year old son laughingly called me a “butt-head.” This was promptly posted on Facebook.

Daughter Compliments. At one point this weekend my 8-year old daughter out of nowhere complimented me and my wife on our parenting skills. This was also promptly posted on Facebook.

Survival of Monster’s University. We took the kids to see Monster’s University for some needed out-of-the-sun downtime. My 5-year old son was uncomfortable the whole time and eventually begged me to take him out of the movie…just too scary for him. I figured the kids would be up all night with nightmares but it was okay…we survived!

My Schedule:  Available all day….

My Market Watch: Bonds Up Big After Friday’s Bashing.  Bonds are way up +69bps after falling -206bps on Friday after the Jobs Report.  On Friday the Jobs Report came in even on unemployment but much better on new jobs created. As a result, traders dumped bonds and bought stocks. When I say traders dumped bonds I mean they sold them off big-time…bonds dropped over -200bps in one day…a bond blood bath.

This morning we’ve gotten back some of those losses – almost +70bps. Wednesday the minutes to the big Fed meeting last month are revealed.  This is freaking me out because I anticipate more downside to this report than otherwise. And with job creation being strong, there is nothing to butt-heads with his new stance on tapering QE. I got a bad feeling about it….

Perspective.  30-Year Fixed Average Rates:

• Past 40 years:  8.15%
• Past 30 years:  7.45%
• Past 20 years:  6.52%
• Past 10 years:  5.72%

A word on locks.  Even though turn-times are fast, I advise longer term locks or at least a pricing cushion to account for possible lock extensions. Flexibility in getting additional days is not as elastic. I advise 45 day Locks. If you must lock 30 days then be sure to build in additional rebate in case you need to pay for an extension.  This is good smart business.

Distinguish Yourself. In order to succeed in this business and in this market, you must find a way to distinguish yourself from other LOs. That is, if you are going to get more reliable referral sources, you must be able to clearly convey several compelling reasons why they should use you….My calendar is getting full – I am scheduling presentations to discuss (1) How to Be Successful In The Future Market, (2) Where to Look For Additional Referral Sources, and (3) How To Distinguish Yourself From Other LOs.  Let me know if you’re interested in a presentation….