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One of the major pitfalls of business and organizations today is believing that what they have done in the past will continue to work into the future.

I understand even hearing that may bother you, but it is a fact.

It is human nature to find comfort in what we know, in resisting change because that which is known is safe. While some may call this complacency, I refer to it as legacy thinking. No matter what it pertains to, legacy thinking keeps us firmly planted in the past and incapable of moving forward.

You may want everything to stay the same, but it doesn’t. As you try to cling to what has worked, you tend to forget that the world will continue to change around you. All that really results from legacy thinking is a stress-ridden protect-and-defend mindset. All of your energy and, in many cases, money goes toward desperately protecting the status quo.

If you are a business leader, putting out fires becomes your job as disruptions from the outside hit you hard.

Why Worry About Legacy Thinking?

As I have stated in the past, legacy thinking represents the strategies, thought processes, and actions that are becoming outdated. This can be defined as a mindset not suitable for providing you with the same growth you are used to in the modern market.

Tied closely to legacy thinking in today’s world is legacy technology. This type of technology you employ that no longer operates efficiently, effectively, or safely too often acts as a great reinforcer of a legacy mindset. It works, so why replace it?

The price you pay with legacy thinking and legacy technology can be astronomical — that’s why!

How Legacy Thinking Is Costing the Banking Industry

A legacy mindset connected to legacy technology creates a threat to your internal operations, leading to a large financial loss. How so? Let’s take a look at this recent example regarding financial institutions.

In 2023, the company Zelle faced multiple technological glitches that locked out thousands of clients and stopped the flow of funds. In total, this cost JPMorgan Chase millions of dollars.

Today, banks rely heavily on banking systems that were instituted decades ago. These applications have older programming languages that are rigid and difficult to accommodate for flexibility and scalability. Outages, glitches, and even security risks due to improper IT systems are running rampant with these different types of software.

According to IDC Financial Insights, legacy technology cost global financial institutions $37 billion in 2020, and that number is expected to rise to $57 billion by 2028! That is an incredible amount of loss that is already being predicted. But this is a Soft Trend that can be changed!

Legacy Technology and the Auto Industry

Legacy technology hurts more than just financial institutions. In the wake of the COVID-19 pandemic and natural disasters like the Texas ice storm, the United States faced a shortage of semiconductor chips for automotive vehicles, and we are still not at capacity in 2024.

One automobile can use upward of 3,000 chips. The auto industry is currently researching how to increase chip electrical capability to reduce this number, but we are still years away from a breakthrough. In real time, we are seeing the detrimental effect of the auto industry’s reliance on legacy technology with regard to these semiconductor chips. Trying to find a more efficient technology while behind the curve leaves many companies ripe for disruption that they could have prevented!

It is never enough to protect and defend the status quo. We should be learning from the past in this modern age of digital transformation and technological disruption. Organizations need to move past their old way of thinking and strategically look toward the future.

Change Your Mindset

Always remember: I do not disparage developments from the past. There is so much to be said about the usefulness of what we have implemented in industries thus far. This is why I swear by my Both/And Principle.

Do not completely scrap your old ways of doing things. What you need to consider as a business leader is being Anticipatory in how you address the changing market. Choose to embrace innovative technology to pre-solve disruptions before they disrupt and inhibit your growth.

It is important to take time to conduct an in-depth review of the systems and thought processes you have in place at your business or organization. Do not be afraid as a leader to ask the questions that need to be asked.

•  How long have you had this same system in place?
•  Are there glitches or malfunctions, no matter how minor?
•  Have your costs of maintenance increased throughout the years?
•  Are you keeping up with your need for increased data storage, your customer base, and the higher demand by customers?

Next, I encourage you to take an exponential look at recent innovations in the market. For instance, would cloud computing improve your operations or increase security for your customers? Are there systems in place that would better accommodate 5G speeds? Could the use of AI streamline some of your processes?

Legacy thinking and legacy technology may be comforting, but that comfort will not last. Having a reactionary approach will only inhibit your growth. It is time for business leaders to shift away from a legacy mindset to an Anticipatory one instead, transforming the future into an advantage instead of trying to hide from it.

Posted On Tuesday, 11 June 2024 00:00 Written by

Nothing helps perpetuate success as much as sharing the stories behind the success! People LOVE a great success story. People want to be inspired to try, and nothing is more inspirational than someone seeing a success story about people like themselves accomplishing something they would also like to accomplish!

Sharing success stories about HOW your clients succeeded in getting into the house of their dreams, how they overcame the challenges by following a specific plan and not giving up enabled them to cross the finish line a WINNER!

It doesn’t matter how ordinary or complicated. It doesn’t matter if they had closed in fifteen days or in fifteen months, the story behind each closed loan is an opportunity to share in the success of those around you. And it’s not just about the client; it’s about the referral partners, the agents, your team, and all the support services that may have played a role in helping that client WIN! 

My clients have been using YouTube®, LinkedIn®, Facebook Live®, and other social media platforms to share the real journey of each closing. Sometimes they use a video of the actual client and have them share their story, or they talk to the agent involved to help create the picture. In cases where people don’t wish to be recorded, the loan officer can simply share the generic story of the situation and how things came together to close the deal. It all depends on the comfort level of those involved. The important part is, to be sure you relate the story and how anyone can become a homeowner if they are prepared to do the work, execute the plan, and not give up on their dream, because as I have shared before, the journey only ends if you quit, or you WIN!

Economic news this week will be important to follow. ADP numbers were a bit weaker than expected. Today we get weekly jobless and continuing claims; and Friday we will see the May jobs report. We have been on a pretty good run the last week and if this data is weaker than expected or as expected, we could see continuing improvement in the rate markets. As always, know what is happening and when information has a chance to impact the rate market. Also, don’t gamble with rates, make sure your client has all the information and that THEY are making an informed choice. Questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Monday, 10 June 2024 00:00 Written by
Posted On Thursday, 06 June 2024 09:09 Written by

Nationwide, price drops are at their highest level since November 2022, suggesting more metros may soon see sale prices decline

Home-sale prices are declining year over year in four major U.S. metros, three of them in Texas: Austin (-2.9%), San Antonio (-1.2%), Fort Worth (-1.2%) and Portland, OR (-0.9%). The last time prices fell in four or more metros was in January, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Nationwide, prices rose 4.4% from a year earlier to an all-time high during the four weeks ending June 2. But there are early indicators that national price growth could soften soon: 6.4% of U.S. home sellers cut their asking price, on average, the highest share since November 2022. And the typical active listing has been on the market for 46 days, up 2.3% year over year–the biggest increase in nine months, suggesting home listings are growing stale faster than they were a year ago.

Some listings are growing stale because high mortgage rates and housing costs are causing would-be buyers to back off. The weekly average mortgage rate rose back above 7% last week, pushing the median U.S. monthly housing payment to a near-record-high of $2,838. (It’s worth noting that daily average rates are declining this week after U.S. job openings fell to their lowest level in more than three years.) Pending home sales fell 3.8% year over year, the biggest decline in three months, and mortgage-purchase applications declined 4% week over week. Inventory is losing momentum, too, which is another reason sales are falling. New listings posted one of their smallest year-over-year increases (6.9%) since February, with high mortgage rates discouraging homeowners from selling because it would mean giving up their low rate and trying to offload their home in a relatively slow market.

“There’s no getting around the fact that it’s expensive to buy a home right now, but some people are having luck negotiating with sellers,” said Bonnie Phillips, a Redfin Premier agent in Cleveland. “I've seen buyers get a home under asking price when it has been on the market for a few weeks. That's especially true when their agent presents market data that supports a lower market value, like comps of similar homes nearby that have sold for less, or fewer than usual online views or tours. Other buyers are finding creative ways to afford a home, like buying a duplex, living in one unit and renting out the other.”

For Redfin economists’ takes on the housing market, including more on how current financial events are impacting mortgage rates, please visit Redfin’s “From Our Economists” page.

Leading indicators

Indicators of homebuying demand and activity

 

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

7.03% (June 5)

Up slightly from 6.99% 2 weeks earlier, but down from a 5-month high of 7.52% 5 weeks earlier

Up from 6.95%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

7.03% (week ending May 30)

Up from 6.94% a week earlier, but down from 5-month high of 7.22% a month earlier

Up from 6.79%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

 

Declined 4% from a week earlier (as of week ending May 31)

Down 13%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

 

Essentially unchanged from a month earlier (as of week ending June 2)

Down 13%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Touring activity

 

Up 23% from the start of the year (as of June 2)

At this time last year, it was up 10% from the start of 2023

ShowingTime, a home touring technology company

Google searches for “home for sale”

 

Unchanged from a month earlier (as of June 3)

Down 18%

Google Trends

Key housing-market data

U.S. highlights: Four weeks ending June 2, 2024

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

 

Four weeks ending June 2, 2024

Year-over-year change

Notes

Median sale price

$392,200

4.4%

All-time high

Median asking price

$417,274

5.9%

 

Median monthly mortgage payment

$2,836 at a 7.03% mortgage rate

8.7%

$26 below all-time high set during the 4 weeks ending April 28

Pending sales

86,464

-3.8%

Biggest decline in over 3 months

New listings

98,467

6.9%

Smallest increase in over 4 months (with the exception of the 4 weeks ending May 5)

Active listings

923,747

15.8%

 

Months of supply

3.2

+0.6 pts.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions.

Share of homes off market in two weeks

43.4%

Down from 48%

 

Median days on market

32

+3 days

 

Share of homes sold above list price

32%

Down from 34%

 

Share of homes with a price drop

6.4%

+2 pts.

Highest level since Nov. 2022

Average sale-to-list price ratio

99.6%

-0.2 pts.

 

Metro-level highlights: Four weeks ending June 2, 2024

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

 

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Anaheim, CA (17.3%)

Nassau County, NY (15.8%)

Newark, NJ (13.9%)

Cleveland, OH (13.9%)

Oakland, CA (13.8%)

Austin, TX (-2.9%)

San Antonio (-1.2%)

Fort Worth, TX (-1.2%)

Portland, OR (-0.9%)

Decreased in 4 metros

Pending sales

San Jose, CA (10.5%)

Anaheim, CA (7.1%)

Columbus, OH (7%)

San Diego (6.7%)

San Francisco (4.1%)

Houston (-15.5%)

West Palm Beach, FL (-14.6%)

Atlanta (-13.9%)

Fort Lauderdale, FL (-12%)

Virginia Beach, VA (-11.3%)

Increased in 14 metros

New listings

San Jose, CA (39.8%)

Phoenix (22.4%)

San Diego (21.2%)

Denver (18.4%)

Las Vegas (18%)

Atlanta (-9.3%)

Chicago (-5.5%)

Minneapolis (-3.6%)

Newark, NJ (-3.2%)

Portland, OR (-2.7%)

Decreased in 10 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-decline-austin

Posted On Thursday, 06 June 2024 06:48 Written by
Posted On Wednesday, 05 June 2024 16:28
Posted On Thursday, 06 June 2024 00:00 Written by
Posted On Wednesday, 05 June 2024 13:11
Posted On Wednesday, 05 June 2024 11:29
Posted On Wednesday, 05 June 2024 11:15
Posted On Wednesday, 05 June 2024 11:01
Posted On Wednesday, 05 June 2024 10:29

Though steep mortgage rates have made homebuying considerably more expensive than a few years ago, shopping around for a mortgage and comparing offers from different lenders could still help borrowers save a significant amount of money.

To show just how much money those who shop around could save, we analyzed data from 34,000 users of LendingTree's online loan marketplace who received two or more offers from mortgage lenders in 2024. Using this data, we determined how much borrowers in each of the nation’s 50 states could save if they chose the lowest APR offered instead of the highest. Here's what we found. 

  • Borrowers across the nation’s 50 states could save an average of $76,410 over the lifetime of their loans by shopping around for a mortgage. That breaks down to an average savings of $212 a month and $2,547 a year.
  • Three states with expensive home prices, California, New Jersey and Hawaii, are where shopping around could save borrowers the most money. Respectively, borrowers in these states could save $131,190, $127,125 and $115,947 over the lifetime of their loans by shopping around.
  • Even in the state where potential savings are lowest, South Dakota, borrowers could still save more than $35,000 over their loan’s lifetime by shopping around for a mortgage.
  • Nationwide, the spread between the average highest and lowest APRs offered to borrowers who shopped around for a mortgage and received offers from two or more lenders is 92 basis points. This spread varies from as high as 146 basis points in Minnesota to as low as 58 in Alaska.

You can check out our full report here: https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/

LendingTree's Senior Economist and report author, Jacob Channel, had this to say:


"Different lenders have different standards and criteria that they look at when deciding who to lend to. It’s for that reason that different lenders can offer such drastically different rates to the exact same people. And, by extension, it’s also why shopping around for a lender can help homebuyers save so much money."

Posted On Wednesday, 05 June 2024 07:05 Written by
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