Over the 5 years I've been a member of the team at Province Mortgage Associates, the company has grown considerably. We started with 9 loan officers, and 3 support staff, and have more than doubled in that time.
As of the beginning of April, I've taken on a new responsibility at Province emailing my colleagues a daily interpretation of relevant financial and economic news, along with rate advice. I thought I'd post today's update as a sample of this work, to give you an idea of what I've been doing lately:
A slow day today after slightly lower than expected GDP
Today’s big data point was 1st quarter GDP, and it came in even with estimates at +3.2%. This is an initial estimate, and will be revised twice as further data comes in. +3.2% means that the economy grew at an annualized rate of 3.2%, adjusted seasonally. In reality, then, one quarter of 3.2% growth is about .8% growth over the quarter. It is adjusted seasonally, as we have some imbalance of economic activity between the seasons. The biggest season tends to occur in the 4th quarter with the substantially increased holiday sales taking place.
The GDP report also includes a measure of inflation. Core inflation was .6% for the first quarter, which is low enough it should allow the Federal Reserve to keep rates low. University of Michigan consumer sentiment came out, as well. Overall, consumers appear to be more positive in April, suggesting the economy may stay on track, however, with jobless benefits ending for some of the long-term unemployed, it could falter in May.
Rates started flat this morning, before moving into stronger territory on fears of continued weakness in Greece and continued investigations, now of a criminal nature, of Goldman Sachs. At present, rates are close to the point where we might get a reprice for the better, and, as has happened most Fridays lately with the Greece problem looming over, I expect rates to continue to improve throughout the day.
I feel it is safe to float until Monday. If you are planning to lock today, do it at the end of the day, as that is when you will get the best pricing.
I’d like to personally thank everyone for all your RedBox video rentals. Your purchases have helped my Coinstar stock jump to its highest point ever today.
Thank you! Have a great weekend!
I hope you've found this interesting. I've heard from my colleagues that these emails, which I send by about 11:30 every day, have been quite helpful. If you're a loan originator in southern New England and not getting htis kind of support from your current company, feel free to give me a call to learn more of what Province is all about.
Dan Hartman is a Senior Mortgage Advisor with Province Mortgage Associates, and also serves as an adjunct professor of Finance and Economics at Roger Williams University and the University of New Haven. He can be reached by commenting on this post, or by phone at (401) 263-8655.
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