Mortgage Monday Newsletter | April 25th, 2022
Welcome to the Mortgage Monday Newsletter! Each week I will give you 1 Industry Insight, 1 Article to Read, and 3 Quotes to Ponder. I hope you enjoy, and if you do, feel free to pass it along to your friends!
Industry Insight
Supply chain issues continue to be a glaring issue to go along with inflation. China has locked down Shanghai, where there is a massive amount of ships in a holding pattern waiting to be offloaded (check out the photo at the bottom of this section). There is now fears that another large area of China, Beijing, might be shutdown.
We still hear a lot in the news about a bubble. However, if we take a look at existing home prices, that claim doesn’t seem to hold a lot of weight.
EXISTING HOME INVENTORY: March 2007 – 3.81 Million March 2012 – 2.32 Million March 2017 – 1.80 Million March 2022 – 950,000
We can see that inventory has become tighter and tighter since the housing crash in 2008. At the same time we have 14 million more households, and higher quality loans being done. Additionally, Freddie Mac came out last week saying that they think we are undersupplied by 3.8 million homes. While demand will be reduced due to the higher interest rates, there is much more demand than supply, which will be supportive of home prices.
*Mortgage bonds are up 48bps today total, and up 25bps since the market opened. A nice little bump in the right direction to start the week, but we will continue to monitor and see if we can start breaking out of this nasty downtrend.
Article to Read
The Curious Case of Sidd Finch
Sports Illustrated
Quotes to Ponder
“You do something all day long, don’t you? Every one does. If you get up at seven o’clock and go to bed at eleven, you have to put in sixteen good hours, and it is certain with most people, that they have been doing something all the time. They have been either walking, or reading, or writing, or thinking. The only trouble is that they do it about a great and many things and I do it about one. If they took the time in question and applied it in one direction, to one object, they would succeed. Success is sure to follow such application. The trouble lies in the fact that people do not have an object, one thing, to which they stick, letting all else go. Success is the product of the severest kind of mental and physical application.”
– Thomas Edison
“There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self.”
– Ernest Hemingway
“Words put pictures in your mind. Pictures in your mind impact how you feel. How you feel impacts what you do. What you habitually do impacts your destiny.”
– Joshua Medcalf