The Stray Cat And The Waiting Game For Fed Rate Cuts
There’s a stray cat that comes by my house every once in a while. A few weeks ago we were eating dinner and saw him outside the window by the front door. I told my wife I was going to give it a little food, to which she replied, “Don’t you dare feed that cat! He’ll be here every day looking for food.” I nodded and left it at that. If my life were a movie it would’ve cut to the next scene where ‘5 minutes later’ would flash onto the screen and the audience would be watching me secretly feeding the cat some leftovers while my wife was safely distracted by one of her bad reality shows. My wife was right though, ever since that night he’s here every day around dinner time. Last night he showed up and I said to my wife, “That cat again? You fed him, didn’t you?!” because as every husband knows – the RDS (* Reverse Distraction Strategy) is the best way to stay out of trouble. (*to the 8,412 people this blog goes to, let’s keep this just between us, okay? No need for Lana to find out.) In the meantime, we’re still waiting for the Fed to feed us any kind of positive breadcrumbs that they’ll be lowering rates soon, and like that cat we’ll be showing up every day…. and waiting….
Cat Quote of the Day: “Women and cats will do as they please, and men and dogs should relax and get used to the idea.” – Robert A. Heinlein
Historical Insights: FDR’s Bank Holiday and White House Pool Trivia
Possible Game Show Answer: The White House Press Briefing Room was built over what used to be an indoor swimming pool, which was installed for Franklin D. Roosevelt in 1933. (*This is from ten years ago but I still think it holds the record: Here’s a house in Utah with the biggest pool on record)
Weekly Economic Outlook
This Week in Economic History: It was on March 5th, 1933 when in his second day in office, FDR declared a bank holiday that would close all the nation’s banks for four days, allowing them to rejuvenate from the frenzy of withdrawals during the Great Depression.
Wuss’up This Week: Every day reports about our economy are released into the wild, and it’s these reports that can sway interest rates in either direction. This week it’s all about jobs, starting with the ADP Employment Report today (expected: 150k new jobs), tomorrow Initial Jobless Claims (expected: 218k), and Friday’s biggie the Employment Numbers for February (expected: 210k new jobs). Also this week we have some Fed Presidents speaking, including Fed Chair Jerome Powell who will testify to Congress about their plan on whether to lower rates or not. Lots of fun stuff!
Current Mortgage Rate Landscape: Conforming, Jumbo, and ARM Rates
Interest Rate Update: Today we find a conforming 30yr fixed rate in the mid-to-upper 6s for a loan of $250k or less, and upper 6s-low-7s for loans $250k-$766k. Jumbo 30yr fixed (*over $766k) can be found… still high! But don’t forget the ARMs as they ate in the mid-6s. As usual rates will vary based on type of home, equity in the home, your credit score, and if you live in one of the 25 happiest cities in America
Additional Read: How Does Refinancing a Home Work?
Special Offer: $450 Fee Waiver on New Loans
Don’t Forget To Remember: Any purchase or refinance loan that closes with me I will waive $450 in lender fees! Grab yourself a cup of instant karma and pass my info along to any friends, family, coworkers, or people who think a cow started the Great Chicago Fire of 1871 that can use this gift.
Cat Quote of the Day 2: “If they could, cats would correct your grammar.” – @bazecraze
Timeout for Trivia: Congrats to those who last week guessed Woody Harrilson!
Guess the Actor Contest: Win an Accountability Banana!
Want to be entered into a drawing to win an Accountability Banana? Simply email me the answer to this week’s Who Am I? question. Good luck: “My film was released on this date in 2015 and it bombed here and probably in Germany too. An anagram for my name is ‘Dance Favor’ but there are Lego characters that can dance better than me. Anyway, screw dancing, I’m an actor! And yeah, my brother is the more famous actor than me, and hell – even my cheesy wife is a more famous actor – and she’s beautiful, men are crazy about her, but let’s bring this back to me. I’ve been in lots of movies – do you remember my 2012 movie that could be retitled Blackjack Leap Road? Or my 2007 and 2014 movies with Seth Rogan? My favorite movies were my 2013 film and the sequel in 2016 – you saw me in those, right?”
My favorite sportswriter, Peter King, retired last week. He ended every article with a haiku about the NFL and what was happening at that time. In his honor I will attempt to end every blog with a haiku as well, not sure how long it will last but here goes…
The Adieu Mortgage Haiku:
Wednesday the Fed speaks!
Give us some good news, Jerome –
It’s time for refis!
