Oh, What A Day…

  • January 10, 2014

whatadaytoonIf you are a mortgage professional, these are the days you live for. Fast-paced, changing, market-moving, exciting. The tone has been set for the better part of a year now. QM is coming. Well today was the day (some might call it doomsday, but not here within the QL walls). The Consumer Financial Protection Bureau established new guidelines all about a client’s ability to repay, which also set new standards to meet to become what is known as a Qualified Mortgage. Lenders have been preparing for the new rules for some time now, but it’s a new world with new statutes aimed at offering consumers more protection. If this new QM journey isn’t enough excitement for one day, today just happened to be the biggest day of the month in terms of economic data.

  • The monthly jobs report was released this morning at 8:30. While the unemployment rate fell to 6.7%, both nonfarm payrolls and U.S. private payrolls completely underwhelmed. This led to a flurry among investors to buy mortgage backed securities, which meant interest rates on mortgages got better today. A lot better.
  • The rally continued throughout the day, at which point many lenders, including us here at Quicken Loans, were able to re-price our rate sheet for the better – meaning pricing improved even more intraday!

By Jeremy VanBuskirk, Quicken Loans Capital Markets Analystwhataday002whataday001whataday003

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