News and Nonsense!

Written by Posted On Monday, 09 May 2022 00:00

The Fed raised interest rates on Thursday by 50 basis points and signaled a reduction in the Fed balance sheet. While it was a good start in heading where they need to go, it’s about a year late! As expected, the bond market is happy with the announcement and while there may be some continued volatility with the unemployment data and Friday’s jobs report, I think this is a sign that the bond market will see how things progress before running up any higher.

Purchase applications are off a little more than 10% year over year, but stronger than they were last week. Even refinances went up a little week over week but are just about a third of what they were last year. So that was the news.

Here is the nonsense. Layoffs continue throughout the industry as those lenders who were pounding refinances last year are having to cut deeply as those losses will never be made up. The fact that some of these lenders AND so called “industry experts” are saying the reason for the layoffs is the slowing of the housing markets. That is complete and total NONSENSE! While purchase business isn’t as robust as it was last year, purchase business is still strong. You don’t layoff 30% - 40% -50% or more of your employees because purchase business is off 10%; you do so because your company hired people and pounded refinances, and now that business has gone back to a much more “normal” level.

There are still more buyers than sellers in this market. Prices are going to ease, but all the talk of a “Housing Bubble” is once again, NONSENSE! Prices may not rise as fast as they were, but until we have more sellers and less buyers, prices are not coming down. Especially given how HOT the rental markets are! You want to identify a potential slowing of the housing market? Watch for RENTS to start coming down. Until then, do the work and keep your clients in the best possible position to win their deal!

Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Rate this item
(0 votes)
Michael White

After 18 years working in all phases of mortgage originations, Mike left day to day originations to start his consulting and coaching company. Now, more than 18+ years later, Mike is working with clients across the country in all markets, big and small, that have generated more than three billion dollars in loan originations within a year.

Mike teaches a system that is focused on time management, action planning, marketing a message, and creating value for both clients and referral sources alike. Quite simply, providing more value leads to more opportunities, more income, less time, and a systematic approach that begs to be duplicated.

 

By breaking down individual aspects of the mortgage business and providing a step by step approach to creating a consistent flow of opportunities that can lead to a highly successful mortgage practice. That is why people who incorporate these strategies out produce the national averages by almost 3 to 1!

Fundamentals and simple strategies provide day to day activities that help provide a “scheduled success” philosophy. It’s all about identifying, targeting, and establishing profitable referral relationships using exceptional value to keep you in the center of your own referral triangle. 

 

https://www.imtcoaching.com/

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.