In this week’s episode of Optimal Insights, Jim Glennon, Jeff McCarty, Alex Hebner, and Kevin Foley discuss the renewed trade tensions between China and the U.S., the ongoing government shutdown, and their combined impact on the mortgage and financial markets. They share their expert opinions and insight into how these factors are shaping the industry and the broader economic landscape. Key Points Discussed: Trade Tensions: Renewed trade negotiations and policy disputes between the U.S. and China, particularly around rare earth exports and tariffs, are causing significant market volatility. The team highlights the connection between AI, semiconductor stocks, and rare earth minerals, emphasizing how these factors drive equity market movements.Mortgage-Backed Securities (MBS) 101: The hosts provide a primer on MBS, explaining their origins, unique features in the U.S. market, and their role in setting mortgage rates. They discuss the importance of market conformity, liquidity, and the impact of government policies on rates.Rate Breakdown: The episode details how mortgage rates are built from the risk-free rate, risk premiums, guarantee fees, servicing costs, and origination fees, illustrating why rates vary and what influences them. Notable Insights/Advice: Watch for policy-driven changes at the GSEs and government bond markets, as these could significantly impact mortgage rates and affordability.Stay informed about macroeconomic indicators like CPI and employment reports, which influence market sentiment and rates. Tune in to gain valuable insights to help you stay ahead and maximize your results in the ever-evolving mortgage landscape. Optimal Insights Team: Jim Glennon, Vice President of Hedging and Trading Client ServicesJeff McCarty, Vice President of Hedging and Trading Product, Optimal BlueAlex Hebner, Hedge Account Manager, Optimal BlueKevin Foley, Director of Product Management, Optimal Blue Optimal Blue Production Team: Executive Producer: Sara HoltzProducers: Matt Gilhooly & Hailey Røise Commentary included in the podcast shall not be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice. Mentioned in this episode: Capture for Originators Reengage Past Clients Without the Spreadsheet Headache Tired of manually hunting for refinance opportunities? Capture for Originators does the heavy lifting for you. It automatically scans your closed loan portfolio and flags recapture opportunities – no spreadsheets, no manual work. Just actionable recapture opportunities delivered straight to you. Learn more: https://www2.optimalblue.com/product-and-pricing-for-mortgage-lenders or reach out to your Optimal Blue Client service representative for more information. Capture for Originators Optimal Blue Summit 2026 | February 23-25 | Scottsdale, Arizona In case you missed it – Optimal Blue has announced the dates for its 2026 Summit! Join us February 23 – 25 at Talking Stick Resort and Conference Center in Scottsdale, Arizona, for a client-exclusive event packed with strategic insight and innovation. Attendees will gain early access to Optimal Blue’s latest generative AI and automation tools, dive into expert-led sessions on pricing, compliance and more, and experience hands-on demos of new capabilities. Plus, it’s a chance to connect with capital markets pros, integration partners, and mortgage insiders—all while gaining actionable strategies to maximize profitability and sharpen your competitive edge. The Optimal Blue Summit:
