Good Friday AM, from your Hometown Lender,

There is not much economic news being released today.

In an hour or so, we will get an updated Consumer Sentiment Index, and if I were a betting person, I would wager it hasn’t gone up… Anyone want to place a bet?

How about this for an eye opener (courtesy of Dr. Elliott Eisenberg).

Forty-three million Americans have federal student loan debt. The average balance, $37,000. Conservatively assuming 20% or eight million, are 30 days late at least once this year, their FICO will fall roughly 85 points. That leads to a credit card interest rate rise of roughly eight points. With late payments now being reported to credit bureaus, and wages being garnished from defaulters (25% of borrowers), this will crimp spending.

Rates this morning are continuing to improve as bonds start the day with gains bringing us back to pricing similar to March 26th or 27th.

Volatility remains high as markets react (and overreact) to every new social post and headline. Day-to-day forecasts for rates are a total crapshoot, there is no clear path forward as we go into each new day. However, loans with time can ride out the extreme day-to-day swings and reprices for now as bonds continue to bounce back and sell off but ultimately find themselves around the same level without seeing rates trend higher or lower.

President Trump told interviewers at Time magazine that he is expecting to wrap up some trade deals with countries looking for lower tariffs “over the next three to four weeks.” Trump later told reporters at the White House that he is “getting along very well with Japan” and an agreement is “very close”. There is also reported movement from China, who is considering suspending its 125% tariff on some US imports. All of this has helped mortgage pricing improve yesterday and today.

Stay safe, enjoy the weekend and first, make today great!!!