Before President Biden quit his reelection bid, markets had been pricing in a “Trump Trade.” This meant investors placing bets on a steeper yield curve and placing money into stock sectors that were most likely to benefit from a Trump Presidency. That certainly has slowed in the last 48 hours, though I would caution against jumping to conclusions about the path ahead, especially when it comes to the mortgage sector. The FOMC is still expected to cut the federal funds rate by 25 basis points at its September meeting followed by another 25 basis points rate cut in December, with more cuts to come in 2025, but that doesn’t necessarily mean that mortgage rates will decline. It’s already been priced in, so only the disappointment of investors’ hopes for easy money being dashed would hurt markets most. VP Harris sealed her status as the presumptive nominee yesterday after securing the support from more than enough delegates and raising a record-breaking haul of donations during her first day as a candidate. Speaking of Californians that no longer reside there, today, I am back in California. Oh wait, that’s something Rob would say when he writes these opening paragraphs. Over the past couple of weeks with him on vacation (odd for him to not share his travel plans with you), I (Robbie, writing to you from the top of Mosquito Pass today via the wonders of modern technology) have had the pleasure of writing the daily commentary in its entirety. Much more work than the capital markets section that I have been writing for the past 15+ years. Some minor changes you may have noticed are a preview of what is to come. We have some big plans for media expansion here that I’m looking forward to sharing with you in the coming days and weeks. Stay tuned! (Today’s podcast is found here and is sponsored by LoanCare, known for delivering superior customer experience as a mortgage subservicer through personalization and convenience, supporting MSR investors with a focus on customer engagement, liquidity, and credit risk. Today’s episode features an interview with LoanCare’s David Vida on servicing beyond expectations.)