Mortgage Monday Newsletter | April 11th, 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
Last week we received the Fed Minutes from their meeting on March 16th. They showed that the Fed would have most likely hiked rates by 50bps (and not the 25bps they hiked) if it were not for the Russia/Ukraine conflict. Many members of the Fed noted that 50bp rate hikes would be appropriate in future meetings this year with inflation continuing to be so high.
The biggest news from the Minutes was regarding balance sheet runoff. Balance sheet runoff means that the Fed will let Mortgage-Backed Securities simply expire off their balance sheet when loans come to term, refinanced, or sold, instead of reinvesting that money back into new Mortgage-Backed Securities.
In some food news, because of the conflict, Ukraine has planted 20-30% less crops which will add to the pricing pressures across the globe. As if things couldn’t get worse, 23 million chickens had to be put down due to bird flu in the US, which will most likely cause poultry prices to surge in the coming months.
*On the rate side of things, mortgage bonds are down 44bps overall today and just over 9bps as of 11:30am. We are still riding that steep downtrend we have been seeing for a solid month now. As always, let me know if you have any questions!
Article to Read
Quotes to Ponder
“Humility is not thinking less of yourself, it’s thinking of yourself less.”
– C.S. Lewis
“If I win this golf tournament, it will change my life on the golf course. But it won’t change my personal life at home. Winning the golf tournament isn’t going to satisfy my soul or my heart. I know that going in, so I am able to play freely knowing that the rest isn’t really up to me. I am just going to do my best.”
– Scottie Scheffler
“In majority of settings, novices get the most our of positive feedback, and experts benefit from criticism.”
– Po Bronson