Mortgage Monday Newsletter | March 21st, 2022
Welcome to the Mortgage Monday Newsletter! Each week I will give you 1 Industry Insight, 1 Article to Read, and 3 Quotes to Ponder. I hope you enjoy, and if you do feel free to pass it along to your friends!
Industry Insight
We will have a busy week of economic news and reports coming out, highlighted by New Home Sales and Pending Home Sales. Both of these reports will give us data on the month of February which will give us a better pulse on the current market landscape. Both of these are expected to come in lower, but this is likely due to record low levels of inventory, not demand for housing.
Late last week there were news articles (I will link one below for the weekly article) that received a lot of media coverage about the affordability of home ownership. Now there was some good stuff in there, but the data they used was just downright misleading so I wanted to address some of the points in the article. I will most likely be making a video on this topic later in the week as well.
The article says that monthly mortgage payments are up 28% year-over-year. If you calculate your principal and interest payments on their own, yes, the increase in payments is 28%. HOWEVER, the stats they use don’t calculate wage increases and your principal & interest ratio (the ratio lenders use to calculate your affordability) in this article at all which is a better gauge of real affordability when buying a home.
*Mortgage Bonds are down 78bps today overall and 38bps as of 11:30am this morning. Most likely still a response from last weeks Fed meeting.
Article to Read
Quotes to Ponder
“I read once that a true mark of a pro – at anything – is that he understands, loves, and is good at even the drudgery of his profession.”
– Paul Halmos
“There is no formula for success – you just begin and then you continue. I’m often asked how to have a career in stand-up and the answer is confoundingly simple: Do the work. Over and over again, just do the work. After you build the courage to get on stage the first time, it’s all about repetition.”
– Cameron Esposito
“Learn from fields very different than your own. They each have ways of thinking that can be useful at surprising times. Just learning to think like an anthropologist, a psychologist, and a philosopher will beneficially stretch your mind.”
_ David Chapman