Mortgage Monday Newsletter | “DATE”
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 the Consumer Price Index, which is the Fed’s favorite measure of inflation came in at an increase of 1.3% month over month. Which is higher than the anticipated 1.1%. That brings our year over year total to 9.1%.
There were a lot of people in the media that believed we had hit peak inflation; however, we have had inflations readings from just under a year ago (that were showing low levels of inflation) that haven’t quite yet come off the year-over-year totals.
This record high inflation number will most certainly pressure the Fed to hike rates another 75bps at their next meeting. This is also causing the yield curve to flatten, with the spread between the 10-year and 2-year now at 17bps, and the 10-year and 1-year now inverted as well. These are very proven and reliable inflationary keys.
*With all that news coming out late last week, we are seeing bonds down 14bps total on the day since opening bell, but rallied a little towards the end of the day as you can see on the chart.
Let me know if you have any questions and I hope you have a great week!
Article to Read
Consider the Lobster by David Foster Wallace
Quotes to Ponder
We treat the body rigorously so that it will not be disobedient to the mind.”
– Seneca
“Knowledge is making the right choice with all the information. Wisdom is making the right choice without having all the information.”
– James Clear
“When people say to me how do you get through every day, it’s the same thing. To me, there are three things we should all do every day. We should do this every day of our lives. Number one is laugh. You should laugh every day. Number two is think. You should spend some time in thought. Number three is you should have your emotions moved to tears, could be happiness or joy. But think about it. If you laugh, you think, and you cry, that’s a full day. That’s a heck of a day. You do that seven days a week, you’re going to have something special.”
– Jim Valvano