Besides a reminder that it is Teacher Appreciation Week, how about some loan officer humor to lead off Monday? “We’re closing on our house next week. Sorry we didn’t use you.” “Oh, that’s okay. You should really go buy a new car this week to celebrate.” LOs have a lot going on, including dusting off their adjustable rate mortgage playbooks: ARMs are making a comeback. Rate talk dominates. Unfortunately, the pricing isn’t quite there yet to their complete liking. And despite the uptick we’ve seen in ARM locks (around 8 percent industry-wide), the yield curve is extremely flat, so there is limited incentive to move into a 15-year loan or an ARM at this point. And regarding the yield curve, the two-day Federal Reserve meeting will conclude with a rate announcement this week on May 4. The market has fully priced in a 50 basis points hike for May and at least another five to six 25-point hikes are expected before the end of year. Chairman Jerome Powell is likely to keep a cautiously hawkish posture during the press conference without any solid macro reason for a policy change. (Today’s podcast is available here and this week’s is sponsored by MCT’s BAM Marketplace, the world’s first truly open loan exchange, where buyers can bid regardless of approval status, and sellers receive automated live pricing from every buyer on the platform. Today’s has an interview with John Sayre Vice President of Client Success for Curinos, on recent rate lock trends and the emerging ARM market.)

Published On: May 2, 2022 / Categories: Mortgage News /