Gotham City For A Day. It’s not San Francisco…it’s Gotham City, at least today it is. This is the dream of this little boy who has leukemia, specifically to be Batkid for a day. This morning the San Francisco Police Chief is expected to make an announcement that Batkid is desperately needed…
My Market Watch: Pricing Flat – Bonds Flat – READ ME! The 30-year bond is trading up +8bps on the day. But rates are about the same as yesterday as all gains were previously taken earlier in the week.
New Fed Chair Janet Yellen affirmed QE in her statement yesterday during her confirmation. This is GREAT NEWS if you’re a mortgage broker or banker, so be happy for the love of all things holy!
Quantitative Easing is the government’s monetary policy of spending billions on bonds in order to keep interest rates low and stimulate the economy. As long as bonds are being bought the price of bonds remains high and this has kept our mortgage rates artificially low for a long time. Bernanke maintained this policy of QE for a long time, but he hinted that the Fed would begin to taper QE mid-year. “Tapering” means to back off, reduce, slow down…not eliminate. Nonetheless, the mere mention of tapering threw the bond market into a tailspin. Bernanke’s rationale for tapering QE was a stronger economy that could withstand a reduction in Fed bond purchases.
But just when we thought high rates were here to stay and would go higher yet, the weak economy showed its true colors. Poor economic reports emerged and then the government shut its doors. Despite the government getting back to work, the idea of QE Tapering got buried. But as quick as it can be dismissed, discussions of tapering find their way back to mainstream…it doesn’t take long for economists to start using tapering in their analysis once again….
ENTER NEW FED CHAIR JANET YELLEN. As expected she affirmed QE. Once again we can breathe easy, at least for the remainder of the year.
I HIGHLY ADVISE you take advantage of this window to get in front of as many referral sources as you possibly can. At the same time, get as many loans as you can, but if you fail to take this opportunity to increase your referral sources, you will be SOL when QE finally tapers…and it will eventually happen.
JOIN MY TEAM FOR CANCER RESEARCH! All You Have To Do Is Not Shave!
MOVEMBER. Last year I grew a gnarly mustache. It was so thick you could barely see my face at all. I’m 46 and my Dad had, and beat, prostate cancer. This is why I don’t shave to support Movember…a charity for research aimed at men’s Cancer afflictions. If you’d like to join my team, click here. If you’d like to donate, even $5, click here. Thanks. All you have to do is not shave!