Everyone knows the first rule of Fight Club, but it’s the 2nd rule – ‘Don’t talk about interest rates’ – that I will talk about below. And spoiler alert: It’s not pretty, Mortgage Fans.
Work Quote of the Day: “Work hard, be kind, and amazing things will happen.” – Conan O’Brien
Today in Economic History: It was on this date in 1995 when Cadbury Schweppes bought Dr. Pepper/7-Up Company for $1.7 billion, making them third in the US soda market. In researching this I thought Cadbury was just a chocolate company but they also make A&W root beer (my all-time favorite beer) and Country Time Lemonade. You know what else they make? Cadbury eggs, which are the most disgusting chocolate concoction ever invented. It’s messy, the chocolate cracks too easily, and the goo that comes out is pure toxic waste. It was invented specifically for Easter but in my mind there is only one Easter candy you should ever buy.
Wuss’up This Week: The Fed’s two-day meeting ends today, and they are expected to leave rates unchanged while they are still tapering. Three things the Fed will decide at this meeting which can impact interest rates: 1. When to start hiking rates (prediction: this summer) which will fight inflation and actually cause rates to go down, 2. When to reduce their balance sheet (prediction: fall 2022) which will be bad for rates because that means the Fed isn’t reinvesting in bonds every month, and 3. What to order for lunch for the meeting (prediction: if ordering in I think a traditional pizza, if going out I think it will be a chain like Panera, possibly Olive Garden if they’ve allowed for a long lunch). One thing is for sure, rates ain’t as pretty as they were a few months ago.
Interest Rate Update: We are just inches away from 4.0% on a 30yr fixed – that’s a number double my high school GPA, and a number we haven’t seen since 2017 – a year when Warren Beatty and Faye Dunaway announced the wrong winner for Best Picture at the Oscars. I think things will get better but not anytime soon. So today a conforming 30yr fixed (*that’s any loan at $647k or less) can be found in the high-3s, and jumbo (*over $647k) loans in the low-to-mid-to-upper 3s. Important to note that I do have long term ARMs in the mid-3s (specifically 10yr and 15yr) which helps. As usual rates will vary based on if it’s a purchase or refinance, type of home, equity in the home, your credit score, and if you’ve ever rescued a dog by securing a sausage to a drone.
Don’t Forget to Remember: Any purchase or refinance loan that closes with me I will waive $575 in lender fees! Grab yourself a cup of instant karma and pass my info along to any friends, family, coworkers, or people that like interesting movie facts that can use this gift!
Work Quote of the Day 2: “Not sure if this Adderall is working but I just made a pros and cons list about pros and cons lists.” – @KevinFarzad
Timeout for Trivia: Congrats to those who last week guessed Geena Davis. Want to be entered into a drawing to win a University of Kansas Jayhawks T-shirt (*my alma mater – best 7 years of my life! Just kidding, Mortgage Fans – only took 4 ½ years). Simply email me the answer to this week’s Who Am I? question. Good luck: “It was on this day in 2003 I was airlifted to a hospital after smashing my Mercedes S500 into a tree. I’m just glad my car didn’t go up in flames because people would blame me for starting it. Friends and family had been pleading with me to get my drinking under control, but it’s my life, I’ll do what I want. And when I go to court for driving under the influence I will not plead guilty because I’m a man who is innocent – it’s the beer’s fault. Okay, a little denial – but when you’re a big rock star things like this are going to happen. Wait, you thought I was a history teacher? No I’m not, but forty thousand copies of my song were sent to schools across the US in hopes it would assist students in understanding history. Last hint: My last name could also be a first name, just like the guy who I used to do face-to-face tours with.”
