Phil Grossfield's Blog

ON WISCONSIN!  My Facebook blew up this weekend!   I got my undergrad at the University of Madison-Wisconsin…I’M A BADGER!  When I went to school in 1986 our basketball team was mediocre.

In fact, all our teams were mediocre, except our hockey team which kicked some serious, well, you know what.  But basketball?  No way.  And I’m a huge basketball fan.  I played high school ball but I wasn’t big enough nor good enough to play college ball.  I don’t play anymore…too dangerous which is why I also gave up motorcycles.  But let’s focus on what’s real important right now…my boys are playing for the national championship tonight!  My Facebook has gone bizerko with my college friends!  I’m so stoked!  I even sent my wife a meeting request in Outlook to make absolute certain she knows where my priorities are at 6p tonight.  GO BADGERS!

My Market Watch – April 6, 2015

The Fannie Mae 30-year bond is down -26bps since Friday’s close.  Generally a lender’s pricing worsens when the bond is being bought.

The Jobs Report on Friday came in significantly less by 100,000 fewer new jobs than expected and traders jumped all over it by investing in safe bonds.  But the true impact was softened because of the holiday.  With the stock market being closed on Friday traders didn’t have a chance to sell off.  And now this morning, after the weekend’s news, traders feel just fine putting money in stocks.  That is hurting bonds and consequently our pricing.

I’d say we got robbed.  We should have seen a bigger impact in the markets in favor of bonds and our rates should be significant improved.  But alas, it wasn’t meant to be.  This morning the stock market has improved and it’s sucking the gains from Friday.  At least our rates came out relatively late in the morning so pricing should have the trend already factored in.  But traditionally PMAC has been trigger happy to issue reprices for the worse in a flailing bond market.  Therefore, if you intended on locking today, I advise you do it now before a potential reprice for the worse.  Let me know if you’d like to discuss…