Mortgage Monday Newsletter | May 23rd, 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
With recent declines in the stock market, the Nasdaq is already in bear market territory. Once an index is down 10% from its highs, it is considered a “correction”. When it is 20% down from its high, it is considered a “bear” market. The Nasdaq is down 30% and the S&P 500 is down 19% currently. If the S&P 500 enters bear market territory, we often see a bit of acceleration to the downside.
We know that inflation is still the biggest problem we are facing in the US. The Fed has been hiking rates, but we have not seen inflation respond yet. Looking into history, that is pretty normal. It is like taking a prescription from your doctor – you don’t feel better right away, but eventually it starts to have an impact. We think that we will see inflation move lower towards the end of the year and interest rates will respond as well.
Speaking of inflation, jet fuel, which makes up 30% of airline sales total cost, is up sharply from $1.90 to $4.20. As a result, airline prices were up 19% in April and 33% year over year.
*We got a little bump last week in rates, but we are trending back downward as we begin the week. as of 11:00am, we are down 19bps overall and about 9bps since market opening.
Have a great week everybody!
Article to Read
By Venkatesh Rao
Quotes to Ponder
“Quality of life is having the freedom to make choices that are not fear based. Whether it’s the ability to choose the kinds of projects I want to take on and can learn from, or the ability to take a month off to travel. Freedom to choose is the ultimate luxury.”
– Danielle Colding
“One of my guiding principles is don’t do anything that other people are doing. Always do something a little different if you can. The concept is that if you do it a little differently there is a greater potential for reward than if you do the same thing that other people are doing. I think that is kind of the goal for one’s work, having obviously the maximum risk, would have the the maximum reward no matter what thee field may be.”
– Seymour Clay
“There are three things you cannot buy.
Fitness: You have to keep fit, whether you are rich or not.
Diet: You cannot pay someone to be on a diet for you.
Soul: Looking after your soul. No one can possibly treat your soul but yourself.”
– Brullo Cucinelli