Phil Grossfield's Blog


Aggressive Rates; Processor Available

Processor Available.   I have been contacted by a processor that is looking for employment. If you need a processor please let me know, thanks.

My Schedule:  Available all day….

My Market Watch:   Bonds Flat – Rates Improved – RATES VERY AGGRESSIVE.  I have been saying for some time now our Capital Markets department would get aggressive when the market stabilized…WE’RE BACK!  Rates are aggressive across the board in both Fixed and Arms including DU Refi Plus and High Balance (Agency Jumbo).  The 30-year Fannie Mae bond usually has a direct correlation with rates/pricing. c23Yesterday we saw the bond selling (a good thing) and as a result Capital Markets improved pricing not once but twice. This morning those gains are holding and pricing is looking good so far.

Next week there is a lot of economic reports and Fed talk coming and it could be a swingy week (is swingy a word?). But for now we have some nice gains to take advantage of. If your borrower is happy with the rate and price, lock them in and give them the speech…locking protects them…warn against jumping if pricing improves.

Of particular interest this morning the bond is trading on a ceiling. A ceiling is a moving average that establishes thresholds for traders to watch. If the bond breaks through the ceiling, then traders look for the next ceiling up to determine when they might want to sell. So, we want the bond to break through this ceiling…if it does, we could see another nice bump in pricing. Let me know if you want to discuss….

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_yourselfDistinguish 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….

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