Hey everybody, hope you are doing well. I’m just gonna move myself here slightly and then I want to share some stuff with you.
I, yeah, so this is quite the day. As I’m shooting this, we’re finishing the day on Wednesday. Uh, what is it?
The 9th, um, like three days in these tariffs. And, um, I just wanted to show this with you cause it’s never seen anything like it.
This is obviously not normal, but today’s the day that, um, uh, our president announced the 90 day, uh, hold on tariffs and the Dow Jones has come back almost 8% in a day.
The NASDAQ back almost 12% in a day. The S and P 500 almost 10% a day. 4.34. It was 3.92 just a couple of days ago.
The point is, is markets don’t move in this way. This is not normal stuff. The bond market, I’m going to show you this real quick, and this is how interest rates work.
This is a six. Month chart of kind of opening and closing of the, uh, the Fannie Mae five and a half percent coupon, which is kind of what drives your normal 30 year fixed rate mortgage.
As these lines go up, these candlesticks go up, that’s the. Price is getting better and interest rates getting lower, which is a good thing.
These are kind of inversely related. So as you can see right here, we’ve seen this monster monster drop. That’s actually when the tariffs kicked in, um, when interest rates were getting better.
Up until like thursday of last week. So this is not even a week This is like four days of the market moving, right? And um This was here. It was on friday, april 4th where we kind of um The real carnage sort of began and the news got out when when everything started to drop.
So in that time between last friday, monday, tuesday, and now today, wednesday We’ve seen as much, you know, drop in the pricing, which means the rates, again, they’re inversely proportional So rates have gone up.
We’ve seen as much movement in 4 days as we’ve seen, like, over a 6 month period. Which is unprecedented. So, these are just crazy times.
The way that affects all of us when there’s high volatility, Uh, and I know it’s hard, but just, you know, you don’t want to lose your mind, you don’t want to sell all your stuff, you know, keep your stocks, don’t look at your 401k, it’s gonna be ugly, uhm, but this too shall pass.
And so, with respect to, uh, interest rates and things like that, you know, the news of last week of things getting better and cheaper, that was all thrown out the window and it’s fallen off a cliff with things going up just huge just in these last few days.
I suspect that this will not last either and things will come clawing back, hopefully pretty quickly, now that we have this 90-day moratorium announced on the, the territory.
The bottom line is, is markets do not like uncertainty and, we have lots of volatility uncertainty right now. And so with that expectations of inflation, everything else, that’s why you’re seeing things just sort of go nutso.
And, and in effect. Uh, mortgage interest rates as well. I hope this helps. If you want to call me and talk about any of the. Anything that you got going on with respect to this, I’m happy to chat. Otherwise, just, uh, know that this is going to kind of calm down, I think. In time. And if you have any questions, as always, please reach out. I’m never too busy. Uh, have a great week.
We’ll talk to you soon.
