Good Monday Morning from your Hometown Lender,

It is tax day today.

Don’t forget to file your return or your extension.

Bonds are taking a beating yet again.

This time on the news that retail sales jumped .7% last month. That is super strong. When pulling out autos / transportation, the number was even stronger at 1.1%. The consumer is very much alive and spending. Expectations for a Fed rate cut are now being pushed out to September (First March, then May, then June, now September).

The 10-yr is back to 4.63% and mortgage bonds are off 40bps.

We have been in a freefall since last Wednesday. Hopefully, we will catch a bid in here soon to find a bottom. Pricing is not looking good. Iran attacked Israel over the weekend. Not much damage was inflicted but the concern is of course over escalating tensions and economically, what happens to oil prices. If oil prices jump higher, that will filter into higher inflation readings which will give the Fed even more reason to stay put.

Today, this more than anything else, is an opportunity to buy.

Rates are not yet improving to where buyers are flooding the market although demand still outweighs supply. When rates do make a real move lower, there will be a corresponding increase in price. Higher rates are less problematic for buyers than higher home prices.

Stay safe and make today great!!!