3.1.26 “I Don’t Care If The Sun Don’t Shine”
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The Bulls Don’t Care If The Sun Don’t Shine. They get joy in the boring time, with hope in the maybe.
With the 10-year yield slipping below 4.00, mortgage rate sheets can see sub-6%. Why are so many people confused? They miss that geopolitical events matter.
US-Iran negotiations have allowed the world to stock up on Oil. Accordingly, the Dollar and Oil have found solace. The EU and Ukraine leaders foster surreal narratives about the war, yet they know it’s over. So, the maybe-to-resolving these items quietly drops mortgage rates.
When the Bulls hope in MAYBE.
These views are mine. Resolve maybes by signing up at les@parkerandcompany.net.
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Song: I Don’t Care If The Sun Don’t Shine (1950) Patti Page
It was originally written for the Disney animated feature Cinderella.
Though my content stated that the US and Iran are negotiating, killing about forty leaders, including the top boss, led the still-living president to request renewed negotiations. The 10-year yield opened down on Sunday, reaching our near-term objective of 3.94. However, contrary to my TMSpotlight Soundbite, Oil did not stay calm; it opened $8 higher than Friday’s close, reaching 75.33 within minutes. Within two hours, it was below $72. If the 2.50 gap does not get filled by the close of Monday’s trading, then US rates may come under pressure. I would encourage MLOs to LOCK-IN their customers. That said, if Oil begins flowing shortly, expect nervous calmness to return.
BTW, the large Oil inventory buildup before BOMBS AWAY, is why the short-cover spike in Oil found sellers quickly. It also gave the Bond market time to assess the situation. So, rates will wobble while remaining bullish.
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Les Parker, CMB Managing Director, Transformational Mortgage Solutions
Les Parker is the Managing Director at Transformational Mortgage Solutions Advisory Board Member for Ainsworth Advisors; and has served as the Senior Vice President of Industry Relations and Consulting at LoanLogics, a technology and services provider focused on improving mortgage loan quality, performance, and reliability throughout the loan life-cycle. His responsibilities included managing the company’s life of loan analytics and monitoring capabilities, overseeing consulting services, contributing to the strategic planning team, and communicating with industry leaders to develop and maintain positive relationships. He focused on identifying threats and strategic opportunities. Parker has executive mortgage banking experience in capital markets, servicing, operations, production, and financial management. Parker has served as director of the largest private issuer of CMOS. His educational background covers music, religious studies, mortgage banking, mathematics, and business administration. Parker holds a BBA in Finance, and other degrees, and has held numerous securities licenses. Parker is a Master Certified Mortgage Banker, a designation conferred by the Mortgage Bankers Association. Parker writes, speaks, and provides audio content, Since the late 1980s, he publishes a daily newsletter connecting global macroeconomics to the US interest rate movement.