Granted, there was a possibility that today could have been a rally day for the bond market, but as seen in the overnight trading session, that possibility depended on the escalation of war in the Middle East. There aren’t many other reasons for bonds to push back too much on recent weakness. One of the only other reasons would be Friday position squaring and short covering, but that would be just as much of an indication of ongoing bearishness in bonds. In that sense, holding sideways is possibly the best victory we could have hoped for today. The fact that we’ve avoided Tuesday’s high yields through the end of the week could even signal sideways vibes until May, at which point data and the Fed will let us know the direction of the next big move.
09:38 AM
Initially stronger overnight, but giving up gains since then. 10yr down 1.7bps at 4.609. MBS up 1 tick (.03).
10:27 AM
10yr all the way back to unchanged at 4.627. MBS down 2 ticks (.06)
02:02 PM
Broadly sideways and choppy, but currently unchanged in MBS and 10yr.
04:27 PM
Still sideways. MBS up 1 tick (0.03) and 10yr down half a bp at 4.622
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The Fed expected to be able to cut rates 3 times in 2024 as recently as March. Financial markets agreed. But the data that’s come out since then has everyone singing a different tune. This week’s data was more of an afterthought compared to last week’s.
The chart above pertains to Fed rate expectations, and that’s not exactly the same as longer term rates like mortgages and 10yr Treasury yields. The latter saw a bit more volatility this week.
Monday’s Retail Sales data was much stronger than expected and markets reacted immediately. Tuesday’s data was consequential, but it was followed by a speech in which Fed Chair Powell had an opportunity to provide some updated thoughts on the rate outlook. After all, the Fed hadn’t seen the most recent CPI data (and several other strong reports) at the time the last round of rate projections came out in March.
As the market expected, the tone is evolving. While Powell and the Fed repeat that the rate path depends on economic data, it’s no surprise to see recent comments acknowledging a surprising amount of strength in the recent data. Stronger data means fewer rate cuts. Powell went as far as saying there was new uncertainty as to whether the Fed will even be able to cut in 2024.
Two days later, NY Fed President John Williams struck similar tone. Just last week, he had pushed back on the CPI data, saying the Fed wasn’t surprised by setbacks in the inflation data. This week’s comments did more to acknowledge the other side of data dependency. Specifically, Williams said the Fed could hike again if the data called for it.
To be sure, these are not earth-shattering “ifs” and “thens.” But the market hones in on the subtle differences with which the data dependency is communicated. It didn’t help that Thursday morning’s Philly Fed Manufacturing Index moved up to the highest levels in 2 years or that the “prices paid” component of the same report moved up much more than economists expected.
Here’s how the entire week looked in terms of 10yr Treasury yields.
Friday’s reaction to the attacks in Iran is important because it shows us that some geopolitical news is indeed worth a reaction. That was less clear earlier in the week as multiple batches of somewhat similar headlines failed to cause as much movement. The difference on Friday was the uncertainty over the status of Iran’s nuclear sites as well as concern that it would be the catalyst for the outbreak of much more significant fighting. The market calmed down quite quickly once it was clear the nuclear sites were not damaged and that Iran was not retaliating. The correlation between stock prices and bond yields further confirms the “flight to safety” trading pattern commonly seen after such news.
In the bigger picture, the past 2 weeks have gone a long way toward making the end of 2023 look like yet another “false start” toward lower rates. Up until then, we had sort of a sideways fighting chance. While we have labeled late 2023 as the 3rd false start of this cycle, it wouldn’t meet the purest definition until rates rise back above last October’s highs. We’re definitely not there yet and we won’t know if we’ll get there until we see the next round of big ticket economic data in May.
In the meantime, home sales remain constrained.
Next week’s economic data is fairly muted apart from Friday’s PCE price index. This isn’t as much of a market mover as the Consumer Price Index (CPI), but it could certainly cause some volatility if it happens to send a different message.
Getting the most money possible when selling your car isn’t as difficult as it once was. The internet allows you to reach a wider audience and increase your odds of finding a buyer willing to pay more — whether selling to an individual, online-only auto retailer or traditional dealership.
When choosing where to sell your car, the decision comes down to whether your top priority is convenience and speed or getting the highest sales price. If your main objective is getting the most money, expect to spend a little more time in your endeavor.
Here are steps to help you get the most money for your car, from prepping for the sale to selecting the best sales platform.
Preparing to sell your car
Before presenting your car for sale, there are some preliminary steps to take. These can vary depending on where and how you intend to sell it.
Know your car’s fair market value
Regardless of where you sell your car, research what dollar amount you can realistically expect to receive. Online valuation sites like Edmunds or Kelley Blue Book show average prices paid to buy a vehicle like yours from individual sellers or dealerships in your area. Providing your vehicle identification number (VIN) or license plate number, as opposed to just entering the make and model, will give you a more accurate value.
Have a price range that you’ll accept in mind. That way you can be prepared to set your asking price at the high end if you create your own listing. And, you’ll know a realistic bottom line if a potential buyer wants to negotiate or a dealership makes you an offer.
Invest time to present your car in its best light
Clean your car inside and out, and have this done professionally if possible to remove any odors or stains. You may also want to clean the engine bay and make any minor repairs, such as restoring cloudy headlights. Your car’s appearance can be very important in convincing a potential buyer (or dealer) that the vehicle is well-maintained and worth more.
Also, gather maintenance records as proof that your car has been taken care of and is less likely to have mechanical problems.
Create a detailed description of your car
This step is needed only if you plan to list your car on sites that sell to private parties. Write a description that shows and tells potential buyers why your car is worth the price you’re asking. Take quality photos from all angles, and write a description highlighting selling points like low mileage, upgrades or any remaining transferable warranty.
Choosing where to sell your car
A lot has changed since the days of selling your car by putting a “for sale” sign in its window, a flyer in the supermarket or a classified ad in the local newspaper. While those are still options, you have a wide range of other possibilities available, too.
Here we focus on the three main avenues for selling a car — selling to an individual, to an online-only retailer or to a traditional dealership. Some websites enable you to use more than one approach, for example getting both private party and dealer offers for your car.
We’ll start with the option that typically results in car sellers receiving the highest prices.
Sell your car to an individual or private party
Selling your car to an individual, also called a private-party sale, is typically where you can get the most money. However, it can also be more time-consuming and come with added risk.
You can use traditional ways of letting people know your car is available, like word of mouth. But you can reach a bigger audience by listing your car on online private sales sites — like Facebook Marketplace, Craigslist, Autotrader or eBay Motors.
While you can make the most selling your car privately, that amount could be reduced slightly by certain expenses. Some private sale sites let you list a car for free while others charge a fee, so consider what you’ll be paying. For example, Autotrader charges $49 for a listing, but this fee also includes a Kelley Blue Book listing and a free vehicle history report for possible buyers. Remember to take into account whether you could have travel or transport expenses to get your car to someone who doesn’t live near you.
Also, be wary of scams when selling your car to an individual, which could be the difference between receiving the most money for your car or not receiving payment at all. Scammers can fake just about every form of payment — including cash, cashier’s checks and certified checks. If your buyer is local, you could meet at that person’s bank to ensure the cash or check is legitimate.
If the buyer isn’t local, using an escrow company — a third party that holds your car title until payment is confirmed — is a good option. But beware that escrow companies can be fake, too. To avoid escrow fraud, don’t use a company suggested by the buyer. Take time to identify a legitimate escrow service, such as a local bank or attorney, or a well-known online service. AutoTrader offers escrow services when you sell through its site, but expect to pay the greater of $49 or 0.99% of the car’s selling price.
Sell to an online used car retailer
Selling your car directly to an online-only car retailer, like CarMax, Carvana or NerdWallet’s own Automotive Marketplace, provides a middle ground. The nonnegotiable offer you receive is likely to be less than what you could get from an individual buyer. However, it’s typically quite a bit more than you would get from a traditional dealership.
Online auto retailers provide an easy way to submit your vehicle information online, receive an immediate offer and in some cases even have your car picked up. At pick-up, you’ll most likely have a check handed to you, or you may receive payment into your bank account via direct deposit or wire transfer. You won’t have to worry about scammers or a possibly drawn-out process of fielding inquiries from strangers.
Online retailers do have vehicle requirements. For example, Carvana only buys cars that are model year 1992 or newer, have a working odometer and are safe to drive. However, if your vehicle doesn’t meet such requirements, you may have options to sell to companies like Peddle and NerdWallet Automotive Marketplace that accept older and damaged vehicles.
Sell to a traditional car dealership
Selling your car to a nearby used car lot may be convenient, but it’s usually where you’ll get the least amount of money. Brick-and-mortar dealerships have overhead business expenses that individuals and online retailers don’t, so dealer offers are commonly the least competitive.
Occasionally a dealer might beat other offers, especially if you’re selling an in-demand car that the dealer needs in inventory, but that isn’t the norm. And, it’s up to you to provide other, higher offers for the dealer to beat.
One way to do this is to get offers from online-only retailers, then ask the traditional dealership if it can do better. Another option is to get and compare offers from many dealers through companies like Cars.com, CarGurus and TrueCar, where you can request bids from local dealers or a network of dealerships.
🤓Nerdy Tip
If you’re buying a car from a dealer and trading in your old one, expect the trade-in value to be less than what you could get selling the car yourself. But you may pay less in taxes, since most states charge sales tax on the difference between the trade-in value and new-car price.
Getting more offers can mean more money
Whether you decide to sell your car privately, through an online retailer or at a local dealership — or in some combination of the three — it’s a good idea to cast a wide net. Unless you’re paying to list on a private sale site, it won’t cost you anything to seek offers from multiple sources.
For example, offers from sites like CarMax and Carvana can vary by thousands of dollars, and one doesn’t consistently pay more than the other. So why not get offers from both, along with several other sites? It’s a small investment of time to find the highest offer and make the most possible when selling your car.
Ready to make your money work for you? Before you jump in and start investing, take the time to learn about brokerage accounts first. After all, in most cases, a brokerage account is the best way to actively manage your investments.
To help you make an informed decision and open a brokerage account, we’ve compiled a comprehensive guide covering everything from fees to plan for your investments. So, take a few moments to equip yourself with all the answers to your burning investment questions, and you’ll be on your way to financial freedom!
How does a brokerage account work?
A brokerage account allows you to purchase and sell stocks and funds through a digital platform. You can generally deposit funds with cash or check and pay a pre-defined commission to your broker.
The fee you pay fluctuates according to the service you get and the level of automation provided by your chosen platform. Unlike a savings account where you gain a consistent interest rate on your deposits, a brokerage account earns (or sustains losses) depending on the performance of your chosen investments.
Although there is more risk involved, you are likely to reap higher profits than a low-interest savings account. However, if you have a strong appetite for risk, particularly if you are aiming for long-term investment, then considering a brokerage account as part of your savings portfolio might be viable.
Check Out Our Top Picks for 2024:
Best Online Brokers for Stock Trading
Types of Brokerage Accounts
When it comes to investing, there are a variety of brokerage accounts available to select from, each tailored to suit your individual investment objectives and risk appetite. Some common types of brokerage accounts include:
Individual brokerage account: An individual brokerage account is a standard taxable account that is held in the name of a single investor, allowing them to purchase and sell securities such as stocks, bonds, mutual funds, and ETFs.
Joint brokerage account: For those who wish to invest together, a joint brokerage account is an option, held in the names of two or more individuals, such as married couples or business partners.
Retirement account: Retirement accounts are specifically tailored to helping investors save for retirement, offering certain tax advantages that can help their savings grow in the long term, including traditional IRAs, Roth IRAs, SEP IRAs, and 401(k)s.
Trust account: Trust accounts are also available, set up to hold assets for a third party, like a minor or estate beneficiary. These can be revocable or irrevocable trusts.
Business brokerage account: Business brokerage accounts are set up to buy and sell securities on behalf of a business, such as a small business or startup looking to invest their cash reserves or raise capital.
Custodial account: Custodial accounts are designed for minors, often set up by a parent or guardian to save for a child’s education or other expenses, such as a 529 savings plan.
What can you invest in with a brokerage account?
There are actually a wide variety of options available. You may want to pick one type to start with, or you could choose several to diversify your portfolio. Perhaps the most familiar type of investment is a common stock, in which you essentially purchase shares of a specific company.
If you work for a large public company, you might receive shares as part of your compensation package. Or you can choose from any of the companies listed in the stock market, ranging from behemoths like Facebook to successful small niche companies. On top of common stocks, you can also add the following to your brokerage account:
Preferred stocks
Corporate or sovereign bonds
Real estate investment trusts (REITs)
Stock options
Certificates of deposit (CDs)
Money market accounts (MMAs)
Exchange-traded funds (ETFs)
Mutual funds
Master limited partnerships (MLPs)
What should you consider when picking an online broker?
When opening an online brokerage account, the first thing to consider is whether you want a full-service or discount broker. Full-service brokerage accounts invariably comes with higher fees. But the upside is that you get a financial advisor who is dedicated to your investment account. You can discuss your financial situation and future monetary goals with your financial advisor and build an ongoing relationship.
With a managed brokerage account, financial advisors perform trades for you based on your financial goals and risk appetite. If you have questions or concerns, you can directly communicate with your broker by phone, email, or even an in-person meeting. You’re likely to pay commissions that are higher than those of a discount broker, but you have access to a seasoned professional at all times.
Discount Brokerage Firms
Discount brokerage firms, on the other hand, typically operate solely online. You execute all of your own trades in a truly do-it-yourself fashion. The advantage is that you can save lots of money. The disadvantage is that you have to rely solely on your own market research to develop your portfolio, and can cost yourself money by making mistakes out of sheer inexperience.
Still, if you want to be hands-on with your investments, online discount brokers make the stock market accessible — and affordable — in a way it has never been before. Here are a few other things to think about when choosing your brokerage firm.
Costs
There are typically two types of costs associated with an online brokerage account. The first is a commission fee, which can range anywhere between $5 and $10 for each trade you make. These fees usually apply to stocks and options, and sometimes ETFs, plus transaction fees for mutual funds.
Trading Fees
However, some online brokerage accounts offer fee-free trades for ETFs and mutual funds. If either of those is a large part of your investment strategy, you may benefit from choosing a brokerage that doesn’t charge any fees for those.
Brokerage Account Fees
The second cost you’ll come across is various potential account fees. These can include an annual fee for maintaining your brokerage account, inactivity fees, and research and data fees for information provided by your broker.
Withdrawal & Transfer Fees
You may also incur fees for withdrawing or transferring your funds. Think about how often you plan to trade and what resources you want access to when assessing the value of these fees at different companies. If your annual fee is high, but you’ll save money on lower trading fees, it might be worth it.
Similarly, if you don’t intend to trade very frequently, you might want to find a brokerage firm with low or no inactivity fees. Be sure to do a full review of all costs involved to make sure you get the best value across the board for your specific needs. Otherwise, your trades could end up costing you money over time, rather than earning you money.
Account Balance
Another factor to consider when choosing a brokerage account is how much money you initially plan to invest. Some online brokerages have a minimum amount just to get started, often requiring at least a few thousand dollars. Others don’t have any minimum requirements. In either case, you may notice varying fees depending on how much you invest.
For example, you may receive a discount by meeting a certain deposit threshold. In those cases, it also means you’ll end up paying more if you have a lower account balance. Carefully consider how much you intend to invest and where you receive the best perks for that amount.
Customer Service
In addition to research and data made available online (and often resulting in fees), consider what type of personal service you receive. Would you like an annual check-in with a real financial advisor? Do you prefer 24/7 email or chat support? Or do you need something more hands-on?
Just as the level of service varies between full-service brokers and discount brokers, you’ll see a difference even among different online brokers. Pay attention to your needs, and don’t be afraid to change your brokerage account further down the road if you feel you need more or less attention.
Cash Account vs. Margin Account
Yet another breakdown in types of brokerage accounts is a cash account versus a margin account. So, what’s the difference? A cash account is extremely straightforward: you simply trade with the exact amount of funds currently available in your account. This can be relatively restrictive for a couple of different reasons.
First, cash used to purchase new stocks must be settled in your brokerage account, so if a previous transaction is still pending, you can’t use that money for a new trade. Second, you can’t make any withdrawals from a cash account until the money is fully settled.
Trading on Margin
A margin account essentially allows you to borrow money from your brokerage firm to cover short-term capital needs. The advantage is that it gives you a bit more flexibility in making time-sensitive trades.
One of the disadvantages is that you’ll have to pay a margin rate, which serves as interest on the short-term loan. Additionally, you may need to place a higher account minimum to compensate for the risk of the broker potentially losing money.
You can potentially qualify for a lower margin rate by permitting rehypothecation, which allows brokerage firms to reuse your collateral for their own purposes. Clearly, this brings additional risk to your portfolio.
If you’re a beginning investor, it’s probably wise to stick to straightforward cash trading. As you become more comfortable and active with the trading process, you can begin exploring the intricacies of margin trading with your broker.
How to Open a Brokerage Account
Opening a brokerage account isn’t terribly difficult and just requires a few pieces of personal information and, of course, money. When you’re ready to get started, gather basic materials such as your Social Security number or tax ID number, driver’s license, date of birth, and contact information.
You’ll also need employment and income information, including your employer, annual income (usually submitted using a W9 form), and your net worth. Assuming this information is easy for you to pull together, the process is both quick and easy, especially if you opt to open a brokerage account online.
You’ll also need cash to open a brokerage account. You cannot use a credit card to deposit funds. Instead, you’ll likely need to perform an electronic funds transfer from your bank account.
Keep a paper check on hand to facilitate the transfer. This process can take anywhere between a few days and a week so that the money can be verified. Once the funds hit your brokerage account, you can get started trading!
Should you use a brokerage account for retirement funds?
This is a very personal question which depends upon your retirement savings goals. First, it’s critical to take advantage of any employer-sponsored retirement accounts like a 401(k), especially if you receive a company match for your contributions. Then, consider contributing to a tax-advantaged retirement account like a Roth IRA.
There are limits on how much you can contribute each year, but you do both to enjoy different tax advantages. For example, a traditional IRA is not taxed until you begin withdrawing, making your annual contributions tax-deductible. Roth IRA contributions, on the other hand, are taxed when you make them.
The upside is that you don’t pay taxes when you start to withdraw, potentially saving you money during your retirement. If you’ve maxed out an appropriate amount of these account types, you might consider supplementing your retirement savings with a brokerage account.
Before you do, consider a few things. First, the earnings you make on selling investments are taxable, usually as capital gains tax. You’ll also want to review the amount of risk in your portfolio as you approach retirement age. Remember to review your holdings regularly, especially if you’re not a frequent trader.
Getting Started
With so many options available for brokerage accounts today, investing is more accessible — and affordable — than ever before. If you’re just beginning to get your feet wet, start by investing just a small amount of money to help you learn through rookie mistakes. Then you can grow into more sophisticated trading methods as you learn the full potential of your brokerage account.
Alternatively, you can switch to a more service-oriented account to take the day-to-day trading out of your hands. The options are quite limitless when it comes to managing a brokerage account.
Frequently Asked Questions
Are brokerage accounts insured?
The Securities Investor Protection Corporation (SIPC) offers insurance for cash and securities held in a brokerage account should the brokerage fail, though this coverage only extends to the custodial function of the brokerage. Unfortunately, it does not extend to losses resulting from inadequate investment decisions or drops in the value of investments.
In addition, SIPC guarantees up to $500,000 per customer, with a $250,000 cap on cash. However, keep in mind that SIPC insurance does not shield against market losses or other dangers associated with investing.
Which brokerage account is the most suitable for beginners?
When selecting a brokerage account as a novice investor, there are a host of factors to consider, including the kind of investment products you have your eye on, fees and commissions, user-friendliness, and customer service. Here are some of the options you may want to think about:
Robinhood: For those wishing to begin investing without incurring too many costs, Robinhood may be a good choice; it offers commission-free trading for numerous popular stocks and ETFs. However, it should be noted that Robinhood does not provide the same features as more traditional brokerage firms, such as access to research and investment advice.
E*TRADE: E*TRADE is a much-revered brokerage firm that provides a vast selection of investment products, including stocks, ETFs, mutual funds, and options. The platform also provides access to educational materials and investment guidance, as well as a navigable platform with a wide range of tools and resources for rookies. That being said, E*TRADE does impose commissions on some trades and, as such, may not be suitable for those looking to make numerous trades.
Charles Schwab: Charles Schwab is yet another highly regarded brokerage firm that offers various investment products and a user-friendly platform, and it boasts a plethora of resources and tools for novice investors, such as educational materials and investment guidance. Although it does charge commissions for certain trades, Charles Schwab does offer commission-free trading for certain ETFs.
At the end of the day, the best brokerage account for a beginner depends on their individual needs and objectives. Hence, it is advisable to shop around and compare the fees, commissions, and features of different brokerage firms before choosing.
How old do you have to be to open a brokerage account?
In the United States, you must be at least 18 to open a brokerage account in your own name. However, some brokerage firms may require a Social Security number or tax identification number to proceed.
If this applies to you, and you are under 18, it may still be possible to open an account with the help of a parent or guardian. A few brokerage firms offer custodial accounts, which are held in the name of minors, but managed by adults.
How much do you need to open a brokerage account?
The amount of capital required to start a brokerage account differs depending on the broker and type of account. Some brokers may require a minimum of $500 or $1,000 to open a regular account, while others may not have any minimum balance requirement. It all depends on the institution and the account you select.
What is a taxable brokerage account?
A taxable brokerage account is a type of investment account funded with after-tax dollars, meaning the money you put in has already been taxed at your marginal tax rate. Capital gains tax is typically assessed on the profits you make when you sell an asset for more than you paid for it, and is based on how long you hold the asset.
If held for a year or less, short-term capital gains are taxed at your ordinary income tax rate; if held for more than a year, the profits are considered long-term capital gains and are taxed at a lower rate.
Additionally, any dividends or interest earned from your investments in the account are considered taxable income, and must be reported and taxed accordingly. To ensure you make the most informed decisions and minimize your tax liability, consult a financial professional or tax advisor before investing.
Cybersecurity, TPO, Verification Tools; Tech Tracking Whereabouts; Why Rates Are Where They Are
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Cybersecurity, TPO, Verification Tools; Tech Tracking Whereabouts; Why Rates Are Where They Are
By: Rob Chrisman
Fri, Apr 19 2024, 11:33 AM
It is “Take Your Child to Work Day” next Thursday which, if you work from home, is probably like a day off from school for the tyke. (I won’t be bringing my son Robbie to work, who, as I write this, is pedaling from Chicago to New York and bunked down last night in Union Home’s Bill Cosgrove’s humble abode.) I do not track his exact whereabouts, but we all know that, in having a smart phone, one gives up pretty much all of their privacy. For example, a new working paper posted to the National Bureau of Economic Research sought to examine the polling data that indicates 22 percent of Americans reported attending religious services on a weekly basis. They did this by looking at geodata from smartphones of 2 million people in 2019, and found that while 73 percent of people did indeed step into a place of worship on a primary day of worship at least once over the course of the year, just 5 percent of Americans studied in fact did so weekly, significantly smaller than the data people reported to pollsters. (Found here, this week’s podcasts are sponsored by Optimal Blue. OB’s smart solutions automate critical functions like pricing, hedging, trading, and social media. More originators and investors rely upon Optimal Blue’s integrated solutions, data, and connections to support their unique business strategies, no matter how complex. Hear an interview between Robbie and me on a variety of topics in mortgage that are germane to the Daily Commentary.)
Lender and Broker Products, Software, and Services
Operations leaders! You don’t want to miss this event if you care about improving your operations! Join Femi Ayi, EVP Operations at Revolution Mortgage, Brooke Smith, Senior Manager, Loan Sourcing Digital Solutions at Fannie Mae, and Jodi Eberhardt, Strategic Integration Director at Freddie Mac, and Richard Grieser, VP, Marketing at Truv, as they highlight different strategies to provide customers with a more transparent, efficient borrowing experience. Freddie Mac’s Loan Product Advisor® asset and income modeler (AIM) and Fannie Mae’s Desktop Underwriter® (DU®) validation service play a critical role for lenders committed to streamlining origination processes and improving loan quality. However, the key to optimizing borrower verification workflows and ensuring compliance is partnering with the right provider that helps lenders improve loan quality and save hundreds of dollars per loan compared to traditional verification providers. Come join us! “Minimizing Risks with GSE Borrower Verifications”, April 24 2:00 PM ET Use code TRUV100 to participate FOR FREE, even if you are not an MBA member! Register now.
“AFR Wholesale® is thrilled to announce the renewal of our partnership with AIME for 2024, underscoring our commitment to the wholesale channel. As we continue our collaboration, we are committed to providing essential resources, comprehensive training, and robust support to independent mortgage professionals and the wholesale channel. This partnership will allow AFR to set new industry standards, promote best practices, and deliver exceptional services to our clients and partners. We also will look to spearhead innovative initiatives aimed at boosting operational efficiencies and enhancing customer experiences. Reflecting on a history of successful collaborations, we are excited about the potential for even greater achievements. This announcement is just the beginning, as AFR plans to unveil several exciting partnerships and updates in the coming weeks. Join us in driving change in mortgage lending. To get involved, contact us at [email protected], 1-800-375-6071, visit AFR.”
In the wake of frequent breaches within our industry, we are reminded of the precarious position mortgage lenders and their customers’ data are currently in. These repeated security incidents emphasize an undeniable truth: robust cybersecurity defenses are not merely an option; they are imperative. A breach can mean the difference between a thriving business and a devastating collapse. There is a very real risk to mortgage companies right now; you’re not just guarding data, you’re safeguarding trust, livelihoods, and the very integrity of the financial system. It’s a responsibility to take seriously, and it’s time to double down on cybersecurity. Richey May’s cybersecurity team is here to help: Check out the latest post detailing the often-overlooked risks in the industry.
Capital Markets
One can’t ignore the U.S. Federal Reserve’s role in interest rates. (The current STRATMOR blog is titled, “Relying on the Fed: How Did This Happen?”) The “experts” have been predicting multiple rate cuts in 2024. Sure enough, the much-awaited Fed pivot has materialized, but it’s not what investors had been expecting. The Fed change was supposed to signal a reverse of its contractionary monetary policy path, keeping rates high, which has been in place since March 2022.
But that is not the message, especially after three consecutive months of stronger-than-expected inflation readings. Fed Chair Jay Powell said, “The recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence. Last year, rebounding supply supported U.S. growth in spending and also employment, alongside a considerable decline in inflation. The more recent data show solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2 percent inflation goal.”
As always, the Federal Reserve is watching the data as it comes out. But things will be higher for longer. At least the next rate move is still forecast to be a cut. Things could get rocky for lenders and borrowers if that shifts to a hike, which could happen if price pressures resurface and put a so-called soft landing into doubt. And now we have the yield on the benchmark 10-year U.S. Treasury note up at its highest level since November, above 4.6 percent versus a yield of 4.25 percent in the last week or two and starting the year at 3.88 percent, meaning that the 10-year is now nearing a full point rise for 2024!
As today’s podcast interview alluded, it’s been pretty quiet out there in terms of market-moving news. Weekly jobless claims showed no change from last week’s level and there was a better-than-expected Philadelphia Fed survey for April yesterday, which prompted some selling. Investors bought plenty of Treasuries to close 2023 and open 2024, betting on several rate cuts this year from the Fed. However, Fed speakers hammering home patient rhetoric on interest rates (several more Fed speakers reiterated yesterday that they do not feel urgency to cut rates at this time) due to a reluctance of the U.S. economy to cool, has forced investors to abandon bets on a rally, giving way to a wave of selling.
Accordingly, mortgage rates surged in the latest Primary Mortgage Market Survey from Freddie Mac, with the 30-year rate above 7 percent for the first time this year. For the week ending April 18, the 30-year and 15-year mortgage rates jumped 22 basis points and 23 basis points versus the prior week to 7.10 percent and 6.39 percent, respectively. Those rates are 71 basis points and 63 basis points higher than this time last year.
Inflation is back below 3 percent, but hotter-than-expected readings for the rental category of housing in the first few months of the year are a big reason the Fed has held back on the rate cuts that Wall Street has been hoping for. Markets seeing the biggest rent declines are the ones where there’s been the most construction. The Northeast and Midwest have experienced lingering high inflation, while the West and South have seen it moderate rapidly.
Existing-home sales fell 4.3 percent in March to a seasonally adjusted annual rate of 4.19 million, a widely expected decline given the recent slip in purchase mortgage applications and solid gains registered in the first two months of 2024 from increased supply and a temporary dip in mortgage rates. Sales were down 3.7 percent from the previous year. The median existing-home sales price rose 4.8 percent from a year ago to $393,500, the ninth consecutive month of year-over-year price gains and the highest price ever for the month of March. The inventory of unsold existing homes grew 4.7 percent from one month ago to the equivalent of 3.2 months’ supply at the current monthly sales pace.
There is no data of note on today’s economic calendar, though there is one Fed speaker, Chicago President Goolsbee. For capital markets folks, today is Class D 48-hours. We begin the day with Agency MBS prices better by .125-.250, the 10-year yielding 4.59 after closing yesterday at 4.65 percent, and the 2-year is at 4.96.
Employment
“At Evergreen Home Loans, our mission is simple: equip our clients with affordable strategies to not only buy a home but to make a winning offer. Our unique approach helps families secure their futures and build generational wealth. As we navigate a fluctuating housing market, Evergreen Home Loans remains committed to innovation and client success. Our tailored solutions emphasize stability and long-term prosperity, ensuring that homeownership is a reality for first-time buyers and seasoned investors alike. By fostering a supportive environment and providing strategic financial guidance, we empower our clients to turn their dreams of homeownership into tangible assets that benefit generations. We’re expanding our team and invite skilled loan officers and branch managers to explore the career opportunities we offer. Join us in making a difference and shaping the future of homeownership. To view all openings visit: Careers.”
Synergy One Lending continues to reemerge as one of the industry success stories in 2024. The addition of 12 new branches and the successful expansion of the company’s footprint into several new markets has provided an even stronger foundation of profitable growth as it prepares for even more ahead. A vision with a P&L structure built to grow market share, relentless execution and adoption of leading-edge technology and a culture that is focused on their 3 core values (delighted customers, inspired employees and a pristine reputation) are leading indicators of the company’s trajectory. Be part of it and Make Your Mark by reaching out to Aaron Nemec at (208) 794-7786 or Eric Kulbe at (303) 717-0293.
Geneva Financial, operating in 48 states, announced that Jessie Ermel has joined its leadership team as Chief Compliance Officer where Jessie will drive quality control and compliance for the company’s mortgage operations.
Our industry lost another veteran recently with the death of Alabama’s John Johnson. John was CEO and co-founder of MortgageAmerica, Inc. from 1978 to 2012. But John’s mortgage career began in 1966 at Colonial Mortgage Company and then Molton-Allen & Williams. He served as the Mortgage Bankers Association of Alabama President in 1980-1981 and chaired the organization’s Convention in 1982. John was awarded the Certified Mortgage Banker designation in 1982. was a member of the Board of Directors of the Mortgage Bankers Association of America from 1999-2003, served as Chairman of the Residential Board of Governors in 2001-2002, and was Chairman of the Board of Directors for MERS in 2006. Guys like this helped make our industry what it is today, and he’ll be missed.
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Editor’s Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.
Forex options, also called currency options, are contracts that give the purchaser the option to buy foreign currency from the exchange at a specific price on or before a specific date.
Like stock options, there are two different types of forex options: A call option gives the holder the right to buy currency at a specified price (the strike price), while the holder of a put option has the right to sell a currency at a predetermined price.
Those investing in foreign countries may use forex options as a way to hedge against unfavorable fluctuations of foreign currencies or to speculate on volatility.
What Is Forex Options Trading?
Like options in the stock market, currency options are a derivative instrument. In this case, the underlying asset is a foreign currency pair. Currencies (also known as FX or forex) are generally traded in pairs. One major currency pair, for example, is EUR/USD, which indicates the value of the euro against the U.S. dollar.
Foreign currency options are a way to invest in foreign currency markets without trading in the actual currencies themselves. 💡 Quick Tip: Before opening an investment account, know your investment objectives, time horizon, and risk tolerance. These fundamentals will help keep your strategy on track and with the aim of meeting your goals.
How Forex Options Trading Works
If you understand how to trade options in the stock market, currency options work in a similar manner. Buying a currency call option gives you the right (but not the obligation) to purchase a particular foreign currency at a specified price (the strike price) at any time before its expiration date.
A currency put option works in a similar way, except that the buyer has the right (but not the obligation) to sell a currency at a given price before the expiration of the option.
You can also purchase combinations of both put and call options at different strike prices and/or different expiration dates, depending on how you think the market will move. You can always close out your position before the options expire. Owning options gives you exposure to movements in the exchange rate without having to actually purchase the currency.
Types of Forex Options Available
The most basic currency options come in two types: so-called ‘vanilla’ calls and puts.
Vanilla Call and Put Options
A forex call option gives the holder the right (but not the obligation) to purchase a given currency at a specific price, any time on or before the option’s expiration date. You would generally buy a forex call option if you have a bullish outlook on a particular currency.
A forex put option works in the opposite manner. If you hold a put option, you have the right (but not the obligation) to sell a specific currency at a particular price before the options expire.
Purchasing a put option is something that you would do if you have a bearish outlook on the underlying currency.
SPOT Options
Another type of currency option is single payment options trading (SPOT). With a SPOT option, an investor and broker can set more detailed conditions for the option to pay out. These conditions are either met, or not. Because there are only two possible outcomes upon the option expiring, these options are sometimes called binary currency options.
Example of Trading Forex Options
If an investor expects the value of a currency will fall, they may choose to buy a put option to earn the right (but not the obligation) to sell the currency in question at a predetermined price during a set timeframe.
For example, if a U.S. investor expects the euro will fall in value against the U.S. dollar, they may buy a EUR/USD put option. Essentially, the option can help the option holder protect themselves against depreciation of a given currency. 💡 Quick Tip: Options can be a cost-efficient way to place certain trades, because you typically purchase options contracts, not the underlying security. That said, options trading can be risky, and best done by those who are not entirely new to investing.
Benefits and Risks of Forex Options Trading
Here are some of the pros and cons of trading forex options:
Benefits
Using forex options can be a cost effective way to potentially help hedge an investors’ portfolio against currency risk. For example, an investor who owns foreign stocks may consider investing in local currencies via options to reduce currency risk. Investors may want to weigh the option’s premium, as well as risk against possible outcomes.
Risks
Like any investment, trading currency options comes with a set of risks. Options are complex, high-risk instruments that require investors to understand how they work.
Currency values may fluctuate based on macroeconomic events, economic data, or political events. This means that FX options investors must bear in mind the risk profile of particular countries, as well as that of their own portfolio. Because currencies react to interest rates, trading currency options also bears interest rate risk. Traders who use leverage to potentially earn higher profits with less money, also risk losing more than their initial investment.
Benefits
Risks
Using forex options is a low-cost way to potentially hedge against adverse currency moves.
The price of currencies can be extremely volatile.
Using leverage, there is the potential for higher profits with less money invested.
Political risk as currency markets react to local governments’ policies.
You have many different ways to trade depending on your market outlook.
Options may be less liquid than the currencies themselves.
The Takeaway
Trading forex options can be a way for you to invest in the foreign currency market without actually owning the currency itself. You can use call options, put options, or a combination based on how you think the market will perform.
Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.
Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.
For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.
FAQ
What are some types of forex options?
The two kinds of forex options are call options and put options. A call option allows the holder to buy the specified currency at a given strike price, while a put option allows the holder to sell a given currency at a particular price. There are also SPOT, or binary currency options.
What is a forex call option?
A forex call option allows the holder to buy a specific currency at a specific price, on or before the expiration date.
How are forex options settled?
If you hold a currency option that is in the money at expiration, there are two possibilities for settlement. You can settle the option with cash or by a physical delivery of currency. If you are short an in-the-money option at expiration, you may need to deposit cash into your account to settle your account.
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Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
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Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. Disclaimer: The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.
The overnight session began with a very clear flight to safety in stocks (sell) and bonds (buy) on headlines regarding increased hostilities between Iran and Israel. There have been plenty of “increased hostility” headlines this week that have not had much impact. These were different because the initial newswires played up the risk to Iran’s nuclear sites. Shortly thereafter, the IAEA said there was no damage to nuclear sites and Iran said there were no plans for retaliation, despite previous warnings to the opposite effect. With that, stocks and bonds began grinding back in the other direction–an effort that continues into early domestic trading.
MSR Execution, VOI, Post-Closing Audit, Client Acquisition Tools; May Training and Events
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MSR Execution, VOI, Post-Closing Audit, Client Acquisition Tools; May Training and Events
By: Rob Chrisman
Thu, Apr 18 2024, 11:12 AM
What loan officer hasn’t had a memorable co-signing experience? Some more so than others. Along those lines, if you head to Disneyland or Disneyworld, and find bone chips or ashes on the floor of your favorite ride, it is probably not an accident. Nor is eking out a gain, or at least breaking even, in residential lending an accident. At the Great River Conference in Memphis, much of the information being presented is about how to do things more efficiently. And for good reason, as the MBA’s calculations for IMBs and mortgage subsidiaries of chartered banks last showed that total loan production expenses (commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations) increased to $12,485 per loan in the fourth quarter. On the income side of things, borrowers who obtained adjustable-rate mortgage loans (ARMs, for lack of a better acronym) 3 or 5 or 7 years ago have popped up on LO screens for refinances, and you can bet that the companies who own that servicing are all over those borrowers “like hounds on a meat wagon.” (Found here, this week’s podcasts are sponsored by Optimal Blue. OB’s smart solutions automate critical functions like pricing, hedging, trading, and social media. More originators and investors rely upon Optimal Blue’s integrated solutions, data, and connections to support their unique business strategies, no matter how complex. Hear an interview with Optimal Blue’s Mike Vough on refining margin management to improve loan profitability and reduce risk.)
Lender and Broker Products, Software, and Services
For many non-QM lenders, real estate investors make up nearly half of their pipeline. Despite stubbornly high interest rates and low inventory, these borrowers continue to transact in this market, opening up an opportunity for lenders to capture this business. However, capturing this business with traditional marketing and sales efforts is not easy. Unless you have Privy. With Privy, you can now automate real estate investor and borrower acquisition and retention. With just a click of a button, borrowers are able to engage with you at any stage of the transaction process, from just browsing to ready to transact. Let effective technology help drive your DSCR, asset depletion, and fix and flip loan volume. Contact Brad Bieber (803-730-5032) to learn more about Privy’s Enterprise Solutions.
A 30-minute meeting with Planet Home Lending’s Correspondent sales team at the MBA Secondary & Capital Markets Conference could be the catalyst for a year-round boost in your business. Join us in the Gotham III Ballroom at the InterContinental New York Times Square. Don’t wait: secure your spot now before they’re all booked! Get in touch with your Regional Sales Manager or SVP Correspondent Sales, Jim Loving (414-270-0027) to explore our continually refined product lineup spanning vanilla to niche products all tailored to your unique needs: Best effort, mandatory AOT, delegated, or non-delegated.
“Regional Credit Union Attributes Successful Audit Process to QC Ally Partnership! In a world where integrity is everything, QC Ally prides itself on building a foundation of trust with each client partner. Recently, we sat down with Bill James, Chief Risk Officer at Marine Credit Union, to discuss how QC Ally helped them achieve a formalized, unbiased pre-fund and post-close audit process with custom loan sampling. As Bill put it, ‘We’ve been very happy with QC Ally. We stacked QC Ally up against very strong competition, and they really won hands down. The service levels you provide and your own staff with very deep, rich experience are unmatched.’ Learn more here.”
As certain wines age, their tannins bind together in a process called polymerization, creating a smoother, rounder flavor that’s more desirable, and, often, more valuable, than when first vinted. Are your mortgage technology partners improving like fine wine? That’s been the experience of Lake Michigan Credit Union, which just shared new success metrics regarding its use of income and employment verification from Argyle. It’s been about a year since LMCU switched to Argyle for VOIE, and the credit union can now quantify its time and cost savings at a whopping 3 weeks and $100 per closed loan. Read the updated case study findings here.
Mortgage Capital Trading, the de facto leader in innovative mortgage capital markets technology, introduces a game-changing best execution technology for MSR retain and release decisions all in one platform. With this groundbreaking development, MCT’s Enhanced Best Execution (EBX) solution emerges as a real-time bridge between MCTlive! (live whole loan/SRP execution) and MSRlive! (loan level MSR valuation), revolutionizing the landscape of best execution strategies in the mortgage industry. MCT clients now have accurate insight into how loans are trading and what investors are paying along with the intrinsic servicing value to enhance the retained vs. released decisioning process. What was once a manual, time-consuming exercise is now completely automated with EBX, making all of the essential execution data elements accessible with the click of a button. Read the latest press release or join MCT’s upcoming webinar to learn more about their latest innovation.
Events and Training
A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future. Yes, there’s plenty ahead in April, but I thought for travel planning purposes it would be to glance ahead to May as vendors and lenders take a critical look at travel & entertainment budgets.
National MI University’s May Webinars: Leading With Style with Andrew Oxley – May 7th at 2pm ET. Income Analysis for Conventional Loans with Marianne Collins – May 9th at 1pm ET.
How to Make Accountability Cool and KPIs Fun Again with Dr. Bruce Lund – May 14th at 2pm ET. Screen Savvy: Mastering Virtual Influence for Lenders with Julie Hansen – May 15th at 2pm ET. Understanding the Personalities of Your Clients and Partners with Rebecca Lorenz – May 16th at 1pm ET. Your Event Playbook to Network and Form Referral Partnerships with Kendra Lee – May 21st at 1pm ET.
Great things are happening around the 2024 Fair Lending Forum, April 29 – May 1 in Charlotte, NC! Asurity is thrilled to announce that Josh Stein, North Carolina Attorney General, will be joining us! He will share his perspectives on fair lending during a fireside chat with our Founder and CEO, Andy Sandler titled The Role of State Attorney Generals in Fair Lending Enforcement. Other prominent speakers are Bob Broeksmit, President and CEO of MBA; Lindsey Johnson, President and CEO of CBA: Grovetta Gardineer, Sr. Deputy Comptroller for Bank Supervision Policy, OCC; Ben Olson, Senior Associate Director for Consumer Protection & Supervision, FRB; Varda Hussain, Principal Deputy Chief for Fair Lending in the Civil Rights Division, Housing and Civil Enforcement Section, DOJ; and Frank Vespa-Papaleo, Principal Deputy Director of Fair Lending, CFPB. Register at www.fairlendingforum.com.
If you’re in Minnesota on May 1st, 10:00am – 12:00pm and a Loan Originator, are you interested in creating and building strong realtor relationships? If so, register and attend the “Mastering the Realtor Referral Relationship” presented by Steven Ross, Author of Doors Open When You Knock.
Join Northern Michigan Luncheon, Tuesday, May 2, 11:30 AM – 1:00 PM at Silver Spruce Brewing Company, to hear from a panel of VA Loan Experts and they dive into the specifics of this loan type, any changes that are coming on VA loans and much more. They’ll also be discussing the pending NAR settlement, and what changes that brings to VA loans, sales, and associated realtor fees.
Don’t miss this opportunity to connect with industry peers, gain valuable insights, and elevate your mortgage business. Attend the MMBBA Annual Conference on Thursday, May 2, 10 a.m. to 4 p.m. in Queenstown.
The Maryland Mortgage Bankers and Brokers Association Annual Conference is scheduled for Thursday, May 2, 10 a.m. to 4 p.m. in the picturesque setting of Queenstown, MD. Featuring speaker, Edward Seiler, PhD, Executive Director of the Research Institute for Housing America and Associate VP of Housing Economics at the Mortgage Bankers Association. Edward will provide invaluable insights into the housing market and economic trends.
This year’s OMBA Annual Convention will delve deep into the dynamics of the mortgage industry and explore the current market trends. Whether you’re a seasoned professional or just stepping into the mortgage world, this event on Monday, May 6 – Tuesday, May 7 promises valuable insights to navigate the industry’s landscape.
The AEI Housing Center will host five convenings in the week of May 6 in Denver, Colorado; San Francisco, California; Los Angeles, California; Orange County, California; and San Diego, California. These convenings will share insights on using light-touch density (LTD), also known as middle housing, to craft solutions to America’s growing housing supply crisis. Registration is free. Los Angeles is the only location that will offer a livestream.
Register for NALHFA Annual Conference 2024, May 1-4 in Las Vegas. Experience education and connection at NALHFA 2024 with an Affordable Housing Bus Tour, Women in Finance Luncheon & Roundtable, Speaker Sessions, and Networking Opportunities.
Register for the Maryland Mortgage Bankers and Brokers Association Annual Conference, scheduled for Thursday, May 2nd, 10 a.m. to 4 p.m. in the picturesque setting of Queenstown. This year’s conference will delve deep into the dynamics of the mortgage industry and explore the current market trends. Whether you’re a seasoned professional or just stepping into the mortgage world, this event promises valuable insights to navigate the industry’s landscape.
In Birmingham, the MBA of Alabama will host its 38th Annual Convention on May 7 & 8.
Registration is open for ACUMA’s FOCALpoint workshops – Join ACUMA in Nashville May 9-10 or Denver June 11-12! Same amazing topics and content in each location – just pick the best city for you! The two-day subject-intensive workshops take deep dives into critical issues affecting the credit union mortgage lending industry. Sign up today! Register here for ACUMA workshops.
The MBA Georgia (MBAG) Conference is coming on May 12-15 at the One Ocean Resort, 1 Ocean Blvd, Atlantic Beach, Florida! For registration visit here.
The Single-Family Housing Guaranteed Loan Program (SFHGLP) Servicing Office in St. Louis, MO announced free, in-person training to lending partners, May 13-17 at the Charles F. Prevedel Federal Building. The training will offer multiple sessions to provide technical training on Loss Claims, Loss Mitigation, and Lender Reporting. USDA will not charge a registration fee. Attendees are responsible for all travel costs. USDA will not be blocking hotel rooms. Attendees may search for hotel accommodations near the training facility located at 9700 Page Ave, St. Louis MO 63132.
Capital Markets
A day after Fed Chair Powell threw cold water on expectations for rate cuts this year by admitting progress against inflation has stalled, Treasury and mortgage security prices rallied yesterday, dropping rates some, aided by excellent demand at a $13 billion 20-year Treasury bond reopening. Remember, even “a dead cat bounces.” There is some chatter out there that Fed Chair Powell’s tonal pivot last year is partly to blame for the lack of recent progress against inflation. Futures are now pricing in a maximum of two 25-basis point rate hikes in 2024, a far cry from the nearly 150-basis points of easing that fed fund futures had anticipated at the beginning of the year.
There was no top-tier data of note yesterday, but the Fed did release its April Beige Book, which noted that the economy has expanded at a slight pace since February. “Price increases were modest, on average,” it said. 10 of the 12 Federal Reserve Districts reported slight or modest growth while two reported no change. Consumer spending edged up slightly, though discretionary spending was pressured in some Districts. Tourism increased modestly but varied widely across the 12 Districts. Residential construction grew a little while nonresidential construction was flat. Employment rose at a slight pace while prices grew modestly, maintaining the pace seen in the last report.
We also learned that single-family home prices increased 7.4 percent from Q1 2023 to Q1 2024, up from the previous quarter’s revised annual growth rate of 6.6 percent, according to Fannie Mae’s latest Home Price Index reading. The national repeat-transaction home price index measures the average, quarterly price change for all single-family properties in the U.S., excluding condos. On a quarterly basis, home prices rose a seasonally adjusted 1.7 percent in Q1 2024, essentially the same as the growth in Q4 2023. On a non-seasonally adjusted basis, home prices also increased by 1.7 percent in Q1 2024.
Today’s economic calendar began with weekly jobless claims (212k, +1k from the prior week, continuing claims 1.812 million, so the labor market continues to do just fine) and Philadelphia Fed manufacturing (15.5, way up!). I did see an interesting report in Bloomberg yesterday that indicated cracks in a U.S. labor market that has been near historic strength for much of the past two years are forming. In five states (CA, CT, NV, NJ, WA), the ratio of jobless people per opening is one or more. Meanwhile Arizona and New York are nearing parity with a rate of 0.9, according to February data from the U.S. Bureau of Labor Statistics.
Later today brings March existing home sales and leading indicators, Freddie Mac’s Primary Mortgage Market Survey, and (once again) remarks from multiple Fed speakers. It’s also a busy day for the Treasury, which will both announce month-end supply consisting of $69 billion 2-year, $70 billion 5-year, $44 billion 7-year notes, and $32 billion 2-year FRNs and auction $23 billion 5-year TIPS. After the initial jobless claim’s news, we begin the day with Agency MBS prices marginally worse than Wednesday evening, the 10-year yielding 4.61 after closing yesterday at 4.59 percent, and the 2-year is at 4.95.
Employment
“TAYGO INC. presents an enticing new opportunity for a SaaS Sales Representative! This pivotal role is instrumental in propelling the success of TAYGOTM through selling our SaaS solutions to prospective clients. The key focus is comprehending the requirements and challenges of mortgage lenders (as well as mortgage brokers) and adeptly showcasing how our products, WEB-GOTM and RIN-GOTM, can optimize their operations and business performance. You must have a strong understanding of CRM products, their features, and the mortgage industry. You must effectively engage with prospects to understand their needs. You must also carefully monitor existing clients’ activities to identify upsell opportunities. You must have exceptional communication skills for online demos and meetings, cold or warm calls and emails. Your expertise, patience, and ability to build and maintain strong customer relationships will be vital in achieving our sales goals and ensuring customer satisfaction. Please send your resume to us.”
“Citizens has a proven track record of successfully navigating challenging market conditions while our capital, liquidity and funding positions remain strong. Retail loan officers need a diverse product mix, reliable operations, and seasoned leadership to rely on to be able to win. With great pay and generous benefits, along with strong digital tools to help you get the job done, Citizens is looking for talented loan officers in the Northeast, MidAtlantic, Midwest and Florida. Our deep product mix allows loan officers to serve many different customer needs, from affordable loan programs such as HomeReady to a best-in-class one-time close construction-to-permanent product, we have what you need to succeed. Citizens’ recent launch of Freddie Mac’s LPA enhances our vast product journey, driving a more personalized and customer-centric experience. Our specialty programs such as condo/co-op financing, along with an amazing Private Wealth discount value proposition for high net worth banking clients, ensure you have all the tools to win. We know a positive customer experience begins with loan origination but doesn’t end there. Recently the Citizens Mortgage Servicing Team received the prestigious ICE Innovation Award for Best Use of Data to Drive Automation, resulting in a 10 percent increase in our customer satisfaction scores. To learn more about how to join our team contact Carl Minott or visit here.”
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Alternative investments, or alts, are assets like cryptocurrency, options, private equity, real estate and art. Alternative investments are typically defined as investments aside from stocks, bonds, mutual funds and other investments that traditionally make up the core of a portfolio.
While the “alternative investments” classification encompasses lots of very different types of investments, most share a few characteristics: Many alternative investments are less regulated by the U.S. Securities and Exchange Commission (SEC) than traditional investments, they tend to be more difficult to sell, and they may not have a high correlation with the stock market. That means if the overall market is down, it doesn’t make it more likely for your alternative assets to be down too.
Another commonality is that they tend to carry more risk than traditional investments. All investments should be approached with scrutiny, but alts deserve an extra degree of caution. One guideline is to invest no more than 10% of your overall investment portfolio into higher-risk investments.
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How to buy alternative investments
There are a handful of ways to invest in the alternative investments covered here, but buying alts typically boils down to one of three options: Buying the asset itself, investing in a company that invests in the asset or is involved in its production, or investing in a fund that holds lots of those companies. For example, you can buy raw gold, stock in companies related to gold, or a gold ETF.
If you want to buy alts themselves, it may be trickier than buying traditional assets. While some alts can also be purchased from a brokerage, others, like futures and forex, typically require a special account. Crypto can be found on crypto exchanges, real estate crowdfunding can be accessed through individual platforms, and collectibles are often purchased at auctions or private sales.
If you want to gain exposure to an alt through a stock or fund, you need to have a brokerage account to do so.
7 alternative investments to consider
Here are seven alternative investments that are worth exploring.
1. Derivatives
Derivatives are investments that are linked to an underlying asset, commodity or index. There are several types of derivatives, including futures and forex.
Investing in derivatives can often involve complex strategies. If you’d like to try out some advanced trading strategies, you can practice with paper trading before you risk your real money.
Futures
Futures are derivative contracts that outline an agreement to buy or sell a particular asset at a set date in the future for a particular price. Futures contracts may obligate the buyer to take physical delivery of the asset at the set date, so to avoid having a truck of corn show up on your doorstep, you may have to sell at a significant loss.
Forex
Forex trading is a speculative investment through which you buy and sell different currencies. For instance, if you believe the U.S. dollar will rise and the euro will fall, you could exchange euros for U.S. dollars. Most traditional brokerages don’t offer access to forex, so you’ll need to look into a forex broker if you want to start trading international currencies.
2. Digital assets
Digital assets, such as cryptocurrencies and nonfungible tokens (NFTs), are supported by blockchain technology.
Cryptocurrency
Cryptocurrency is a form of digital currency. There are many different crypto coins, such as Bitcoin or Ethereum. You can use crypto to pay for things, like you would with a regular currency, or you can use it as an investment by buying it in the hope that it will increase in value over time (like pretty much any other investment).
If you’re looking to purchase crypto directly, there are a few ways you can do it. Some online brokerages allow you to purchase crypto through them.
Some people may opt to store their crypto in a more secure fashion than an online exchange: a crypto wallet. Storing your crypto yourself makes you less vulnerable to security breaches, but comes with some risks. Learn more about how to buy cryptocurrency.
If you’re looking to get exposure to the crypto market without directly investing in crypto itself, you can consider crypto stocks. These stocks don’t include actual crypto, but rather companies that are involved in the wider crypto market, such as those that create equipment used to mine cryptocurrencies or operate crypto exchanges.
You can also look into Bitcoin ETFs. These ETFs track the price of Bitcoin by holding a large amount of the currency itself.
NFTs
Nonfungible tokens, or NFTs, let you have a record as being the owner of an original digital file. That file can be a piece of digital art or an item from a video game, and each NFT is unique. NFTs have largely declined in value since 2021 when they were making headlines.
» Learn more about NFTs
3. Precious metals
Unlike many of the investments in this list, precious metals, such as gold and silver, have been considered valuable since humanity’s early days. That’s particularly helpful because it provides a long track record to assess their values. Precious metals can also sometimes function as a hedge against inflation in a well-diversified portfolio.
There are several ways to invest in precious metals. You can buy the metal itself, typically in the form of bullion (think bars or coins) or jewelry. Bullion may be tempting — who doesn’t want a bunch of gold bars or necklaces lying around? But it’s difficult to store and sell. You can also invest in gold stocks or other precious metal stocks, or gold ETFs.
4. Collectibles
Investing in collectibles, such as wine or fine art, comes with many of the difficulties of investing in bullion: It can be difficult to secure and store, and it can be difficult to sell. Unless you’re well-connected in a particular collector’s industry, finding a buyer for your antique sculpture or vintage muscle car when you’re ready to cash in may be challenging.
5. Commodities
Commodities are raw, physical products such as oil, wheat, gold or corn. Investing in commodities may have some overlap with a few of the other categories listed here. For instance, you can invest in commodity futures, or you can purchase precious metals, which are technically commodities. You can also buy commodity stocks or commodity ETFs.
6. Real estate
There are several ways to invest in real estate, including REITs, or real estate investment trusts, utilizing a real estate investing platform or purchasing actual property.
REITs
REITs are similar to mutual funds in that they are companies, but they specifically own, operate or finance income-producing properties, such as apartment complexes that generate rent. REITs must pay out at least 90% of their taxable income to shareholders in the form of dividends, creating a potential revenue stream for investors. As with stocks, you can purchase publicly traded REITs through a brokerage account.
Real estate investing platforms
Real estate crowdfunding investment platforms have made investing in real estate far more accessible for the everyday investor. These platforms combine your money with other investors’ money so you can access private REITs and private property investments that historically have only been available to accredited investors (though some of these platforms are also only open to accredited-investors).
Actual property
If you have the capital, you can invest in actual real estate properties. This option may be attractive to those who can afford the startup costs (such as a down payment and any upgrades) and prefer to invest in something physical. The downsides include the risk of putting so much capital into one property, having to pay someone to manage and maintain the property, or having to do it yourself.
7. Private equity
Private equity is exactly what it sounds like — equity that comes from private investors. Typically, the only way to access private equity is through a private equity firm, and the investments are often only open to accredited investors who can meet a very high minimum investment.
Benefits and risks of alternative investments
Alternative investment pros
Diversification. Diversification helps spread your risk out across different industries, sectors and geographies. If the tech sector is up and the oil industry is down, and you’re invested in both, you can smooth out the highs and lows of each. Alternative investments provide investment diversification, especially because they may have lower correlation to traditional investments.
Potential reward. This is obviously one of the most attractive parts of alternative investments: They have the potential to bring in big financial gains. But in order to realize those large gains, you have to pick the right investment at the right time. And people, even investing professionals, often get it wrong and lose money.
Access. Until recently, alternative investments were only available to accredited investors or those with a high net worth. Now, there are more ways than ever for everyday investors to get access to some of these investments.
Markets, demystified
Register with NerdWallet or sign in to read our monthly stock market outlook, and keep up with the terminology, news and events investors should know about.
Alternative investment cons
High Risk. Alternative investments almost always carry more risk than traditional investments such as stocks or bonds.
Illiquid. With many types of alternative investments, you may not be able to get your money out right away.
Less regulation. Many alternative investments are less regulated by the SEC than traditional assets.
Storage. Some alternative investments, such as precious metals, crypto, and collectibles, come with the added difficulty of storing them.
Best alternative investment to stocks
The best alternative investment for you will depend on your existing portfolio. For most people, a well-diversified stock-based portfolio can help you build wealth over time. If your portfolio is already in good shape, and you’re looking for something more exciting to supplement with a small percentage, you can start to look at alternative investments’ historical returns in comparison to the standard market.
For example, the average stock market return, as measured by the S&P 500 index, is about 10% per year for the last 30 years. Some years are higher and some years are lower, but over time, S&P 500 index funds have returned about 10%, not accounting for inflation.
Knowing that, you can start to compare that to the performance of alternative investments. Since 1972, on average, the FTSE NAREIT All Equity REITs index has returned an 11.3% total annual return. That’s not to say that REITs always outperform the S&P 500, but it does show over fifty years of strong performance. If you were to add a REIT to your investment portfolio, it would also help diversify your holdings.
Since 1969, gold has had a median average closing price of about $384 per ounce, and in 2024, gold’s average closing price has topped $2,000 per ounce. That sounds great, but gold’s average annual return from the last 30 years was 6.7% — significantly less than either the S&P 500 or REITs. Gold can, however, serve as a hedge against inflation. Every investment has pros and cons. That’s why it’s so important to consider potential alternative investments against your existing portfolio.
The bottom line
Alternative investments can be exciting, and they can help diversify your portfolio, but they also come with particular challenges and risks. If you’re curious about alternative investments, it’s worth doing your homework to see how they might complement your existing investment portfolio. If you don’t already have an investment portfolio composed of more traditional assets, it may be better to focus on building that first.
No one is getting any younger, not even Clint Eastwood. Time marches on, as does, apparently, the cost of mailing a letter. The post office wants to jack the price of a stamp to 73 cents from 68 cents which took effect in January. But everything is politics these days, and out comes, “The Trump donor whom Biden can’t fire is running the U.S. Postal Service directly into the ground, just what everyone warned about when he was confirmed during the pandemic. The latest price hikes at USPS are just another sign of the unfavorable leadership of Postmaster General Louis DeJoy.” We have nearly seven months more of election cr-p. How about some good ol’ legal stuff? Neither side in the recent UWM lawsuit is likely to care to hear Brian Levy’s perspectives about the legal theories and people involved in the case, but I suspect many of you will. Levy’s most recent Mortgage Musings is chock full of sideways glances in footnotes, Don Corleone’s ethics, and of course, RESPA, among other stuff. (Found here after 8:30AM ET, this week’s podcasts are sponsored by Optimal Blue. OB’s smart solutions automate critical functions like pricing, hedging, trading, and social media. More originators and investors rely upon Optimal Blue’s integrated solutions, data, and connections to support their unique business strategies, no matter how complex. Hear an interview with Canopy’s Josh Neumarker on current pain points for originators and communication between management and sales staffs.)
Lender and Broker Products, Software, and Services
A&D Mortgage introduces AIM – Artificial Intelligence in Mortgage, revolutionizing the mortgage industry with a platform that streamlines the lending process for brokers and borrowers alike. AIM enhances A&D’s existing portal with AI, advanced technology, a user-friendly interface, and stringent compliance protocols to set a new benchmark in loan originations. This innovative platform is designed to simplify mortgage processing, offering features like an intuitive interface for reduced processing times, comprehensive support for Non-QM and Conventional loans, direct Point of Sale integration for swift applications, and top-tier security and compliance measures safeguarding client data. AIM represents A&D Mortgage’s dedication to innovation and excellence, facilitating a smoother, more efficient lending experience from application to closure. As the industry shifts towards a tech-driven future, AIM leads with a solution that enhances both broker efficiency and client satisfaction. Explore AIM’s transformative impact on mortgage lending here. Step into the future of efficient, secure, and user-friendly mortgage processes.
“Take3tech.com is excited to announce our integration between TheRuleTool and Polly PPE. TheRuleTool supports thousands of Loan Officers who can now access agency/investor/bond/jumbo guidelines in Polly to ensure you are on target with guidelines. Are you a lender focused on building relationships with borrowers? Take3Tech has created LoanMAPS, a POS/LOS/CRM that includes upfront underwriting, digital validation and workflow that incorporates D1C, AIM, Collateral Underwriting, and portfolio guidelines. Easy for borrowers to use and empowers loan officers with knowledge that you use to impress! Easy to install and gives you the power of one database that hosts all your POS/LOS/CRM data. Training entry-level employees? Not a problem with our intuitive step-by-step instructions. You will have new employees processing and closing in a week! Learn more by visiting our website or registering today for an upcoming webinar with our CEO and Fannie Mae.”
In today’s fast-changing market, one thing has remained consistent: home price growth. With the rising prices, demand for HELOCs and home equity loans has also increased. Do you have the right tools in place to capitalize on today’s home equity lending opportunities? In this short video, Margie Ambrosio, SVP Information Systems Manager at George Mason Mortgage, shares her unique perspective on why home equity lending should be a “no-brainer” for today’s lenders and how Encompass® by ICE Mortgage Technology® makes it easy. Click here to watch the full video.
Do you know how much wallet share you hold in your agent referral partnerships? With MMI’s data intelligence platform, you can not only see who you’re working with but also how much of their business you’re getting. For a limited time, click here to request your complimentary agent wallet share report and get X-ray insight into where else your top RE agent or office partner is sending their deals. Armed with this competitive intelligence, you can pinpoint potential areas for growth and opportunity like this MMI user: “As a dedicated professional constantly seeking innovative solutions to enhance my business, discovering MMI was a game-changer. MMI has allowed me to proactively identify prospective new agents and immediately reach out to discuss something of value for their new listing. MMI provides the essential data backbone, delivering new listing information to my inbox for existing agent relationships, as well as the agents on my prospect list.”
Winning Agent Business: The lender’s guide to building a strong referral network, updated for 2024. In the aftermath of the NAR ruling, agents are more incentivized than ever to show their clients value. That means they’re actively looking to partner with top-tier lenders in their market. Want to take advantage and grow your referral business? Maxwell just updated its Winning Agent Business eBook with new tips straight from agents to help you better network to create a strong funnel of referral leads. Download your free copy to learn qualities agents value in their lending partners, networking dos and don’ts, ways to become a go-to lender, and more.
If Amazon were in the mortgage business, what would their online application look like? Would it look like yours? They wouldn’t tolerate borrowers getting frustrated with a bad mobile experience and neither should you. Check out LiteSpeed by LenderLogix and see why mortgage bankers are making the switch.
Originators continue to find a way to get ahead of the competition with 48-hour appraisals! Tired of slow appraisals costing you deals? Class Valuation is transforming the industry with its 48-hour purchase appraisal program. This groundbreaking solution is designed to cut appraisal turnaround times significantly, helping loan originators close faster and win more business. Class Valuation’s innovative technology and streamlined process has proven over and over to cut turn times dramatically with no loss in appraisal quality. Get the edge you need in today’s market. Learn more about the 48-hour appraisals.
STRATMOR, Customer Experience, and ICE
Did you know that STRATMOR Group’s Customer Experience Strategy program, MortgageCX, is now integrated with Encompass and available through ICE Marketplace? MortgageCX personalizes CX feedback and coaching tips for every LO, processor, and manager, leveraging STRATMOR’s industry expertise, peer benchmarking data, and the lender’s own customer feedback. Participating lenders are transforming their customer experience and igniting their revenue growth. Contact STRATMOR for more on the MortgageCX program and join those lenders already benefiting from this integration.
Upcoming Webinars and Training
You may-as-well learn something while waiting for business to pick up! A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.)
Looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT join Robbie Chrisman and Justin Demola for a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements.
When are Things Going to Get Better Already!?! Spokane Association for Mortgage Professionals invites you to join us as we have a conversation with RE Source on Wednesday, April 17th from 4:30pm-6:30pm at the Spokane Club 1002 W Riverside Ave, Spokane, WA. Topics will include Market Insights, Content Creation, Social Media and Winning in 24′. Click here to register. (Be sure to check out the RE Source latest videos: https://theresource.tv/.)
Thursday April 18th Rich Swerbinsky returns to the airwaves at 3PM ET, interviewing the CFPB’s Mark McArdle on what the big misconceptions about the CFPB are, and where its focus is currently.
FHA Appraisal Policies for Manufactured Homes in Greensboro, April 18th, 1:00 PM – 3:00 PM (Eastern). This free, in-person training will provide an overview of FHA appraisal/appraiser requirements for manufactured homes as outlined in FHA’s Single Family Housing Policy Handbook 4000.1. This training will cover several topics including property acceptability criteria, minimum property standards/minimum property requirements (MPR/MPS), defective conditions, policy updates, inspections, well and septic requirements, underwriting the appraisal, and program types such as a new construction.
Join Angel Oak on Thursday, April 18th for a Non-QM Webinar on Short Term Rentals & DSCLR Loans. Discussion will include AirDNA, short term rentals and DSCR Loan program details. Plus, the top questions heard from their brokers.
IMLA is hosting a Builder Panel at its April Luncheon, Thursday, April 18 · 11:30am – 1pm MDT at the Riverside Hotel Aspen Room. Treasure Valley Builders Bobbie Jordan, Preside of Jordan Homes, Bud Compher, Jr., CEO of Neighborworks Boise, Cody Weight, President of Solitude Homes and Jenna England, President of Berkeley will share their perspectives on building trends, affordable housing, and how they are adapting to the everchanging market.
AmeriCatalyst explores the operational impact of climate change and its profound industry-wide implications for the US housing and finance market. AmeriCatalyst’s GOING TO EXTREMES: The Climate, Housing and Finance Summit is being held at the Gaylord National Harbor (in the Washington DC area) on April 18 and 19. Contact Toni Moss (512-461-6340) with questions.
Friday the 19th is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”.
Join co-hosts, the National Association of Appraisers and Appraiser eLearning, at the 6th annual Appraiser’s Conference and Trade Show (ACTS). The next ACTS conference will be held April 20-23 at the DoubleTree in Colorado Springs hosted by the Colorado Real Estate Appraisers Association.
Interested in learning how retain/release MSR decisions can be included in your best execution strategy? Join MCT for a webinar on April 24th at 11:00 AM PT titled Complete Best Execution – Now Including Fully Integrated Retain/Release MSR Decisioning. In this webinar, MCT will review the current state of the MSR market and discuss more comprehensive retain vs. release strategies, in addition to our recently introduced fully integrated Enhanced Best Execution (EBX) solution. MCT’s Paul Yarbrough will then provide insights from a trader’s perspective regarding MSR best execution strategies at time of loan sale. He will also highlight MCT’s Rapid Commit technology and assignment of trade processes. This session will include a live demo of the EBX (MCTlive! and MSRlive!) integration, showcasing how EBX can effectively optimize your flow MSR trading process and decisions. Register for the webinar to join the session.
Join CoreLogic for an exclusive webinar on Wednesday, April 24, noon CT tailored for lenders to delve into the Valuation Modernization Initiative. Dive into the innovative redesign of forms and the cutting-edge UAD (Uniform Appraisal Dataset) initiative, poised to revolutionize the sector. Explore the significant effects that this initiative is exerting on the broader industry, encompassing alterations in Loan Origination Systems (LOS), effective management of appraisal fees, performance SLAs, and other aspects.
The Single-Family Housing Guaranteed Loan Program (SFHGLP) is offering free, in-person training to its lending partners. The training will offer one and half days of loan origination training and one day of loan servicing training, April 24th, 9:00 am – 4:00 pm in Glenn Allen, VA. The servicing agenda will focus on the methodology and processes of handling troubled loans in your USDA portfolio. USDA will cover the entire waterfall of loss mitigation options and the specific rules and processes of administration and provide an update on USDA programs portfolio review. It will be held at the Virgina Housing Center, 4224 Cox Rd., Glenn Allen, VA. This is an in-person event only and will not be streamed live.
“A never-before-seen economic environment calls for new ways to create stronger business growth. Register now for a MAXEX roundtable discussion Thursday, April 25 at 2 p.m. Eastern where we’ll breakdown how unyielding inflation, stubborn mortgage rates, an unpredictable Federal Reserve and a nearly two-year long yield curve inversion are affecting the mortgage world. The roundtable will feature MAXEX and special guests. Don’t miss this opportunity to hear directly from industry leaders about how they’re attacking the road ahead and where you can find growth while working against industry headwinds.”
Join MBA’s webinar, April 25th, 2:00 PM – 3:30 PM ET, as they delve into the fundamentals and complexities of mortgage accounting. Anyone who desires to increase their knowledge of mortgage loan accounting will benefit from this session that is designed for business owners, executive management, accountants, and non-CPA accounting managers. Complete the full series, and you’ll have the information necessary to master mortgage accounting.
FHA New Applicants are invited to join a free virtual webinar, April 25, 2:00 PM – 3:30 PM (Eastern) conducted by FHA’s Office of Lender Activities and Program Compliance, will focus on the Lender Electronic Assessment Portal (LEAP) as outlined in the Single Family Housing Policy Handbook 4000.1. Content includes a detailed overview of the FHA lender approval application process, eligibility requirements, and required documentation for the various types of mortgagees (lenders). Common application deficiencies will also be addressed and tips for submitting a successful application will be provided.
Capital Markets
The latest consumer price data drove last week’s market movement as traders attempt to predict when the Fed will begin to ease monetary policy. The Consumer Price Index increased 0.4 percent in March at both the headline and core levels, which was hotter than market expectations and led to an immediate sell-off in bonds. The question remains as to whether this is a bump in the road to 2 percent inflation or an inflection point signaling a reversal of course.
Meanwhile, farther up the food chain, producer prices rose 0.2 percent in March, their slowest pace over the last three months. The Fed’s preferred measure of inflation, the core PCE deflator, will not be released until April 26. Despite the belief that inflation will trend lower throughout the year, Fed officials clearly do not have confidence it is on a sustained path towards two percent at this time. As a result, the market has pushed the likelihood of the first rate cut from June to September.
This week’s economic calendar kicked off with a bang today with March retail sales (+.7 percent, the consumer is strong!) and April Empire State manufacturing. Later today brings the NAHB Housing Market Index for April, February business inventories, and remarks from a couple of Fed speakers. We begin the week with Agency MBS prices worse .250-.375, the 10-year yielding 4.61 after closing Friday at 4.50 percent, and the 2-year up at 4.96.
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