As we roll into the second week of February, don’t forget Valentine’s Day is just around the corner this Friday! Consider this your friendly reminder to pick up some flowers, chocolates, or whatever keeps your significant other smiling. And now that we’ve got that Public Service Announcement out of the way and (hopefully) keeping you out of the doghouse, let’s get down to business!
In this week’s issue of The Mortgage Minute, we’ll be covering key economic data releases, including Fed Chairman Powell’s testimony to Congress on Tuesday and Wednesday, a Pipeline Save of the Week that reminds us that saving a deal sometimes means leaving no rock unturned, and a special offer from our parent company, MortgageMaker.ai.
Finally, we’re highlighting an uptick in housing market optimism despite current market headwinds, and how one real estate agent exploded their business with this quarter’s most popular social media-related punching bag: TikTok.
It’s important during the slow times to look at every angle your business can take to gain an edge, so you’ll want to make sure to read till the end!
And with that, let’s dive in.
Market Sentiment & Economic Calendar
This week is packed with economic indicators that could stir the pot for mortgage rates. From inflation expectations to Fed Chairman Powell’s Congressional testimony, by week’s end we’ll have a better grasp of what’s to come as we get closer to the spring buying season.
What to Watch:
Monday, February 10:
Consumer Inflation Expectations (January): Last month’s data showed a slight uptick in inflation expectations, and economists are predicting a similar trend for January. For mortgage rates, if the increase is modest (as anticipated), it could signal that inflation pressures are stabilizing – a win for rate stability.
Tuesday, February 11:
Fed Chairman Powell’s Testimony to Congress: Whenever Powell grabs a microphone, markets listen. This week’s testimony to the Senate Banking Committee on Tuesday, and the House Financial Services Committee on Wednesday, will offer insights into the Fed’s current thinking on inflation, employment, and interest rates.
Expectations are that Powell will maintain a cautious tone, emphasizing the Fed’s data-driven approach. Any hint of dovishness (like acknowledging slowing inflation trends) could give mortgage rates some breathing room.
Wednesday, February 12:
Fed Chairman Powell’s Testimony to Congress continues: Testimony continues with the House Financial Services Committee. See Tuesday for additional insights.
Core CPI (Month-over-Month and Year-over-Year): Analysts are predicting a slight Core CPI increase of 0.3% for January, compared to December’s 0.2% figures. Year-over-year numbers are anticipated to cool slightly, from 3.2% to 3.1%. A cooler-than-expected CPI could nudge mortgage rates downward, while a surprise spike might send them climbing.
These data points, coupled with Powell’s remarks Tuesday and Wednesday, are arguably going to be the most critical of the week for rate watchers. This is the day to keep your rate lock trigger finger at the ready.
Thursday, February 13:
Weekly Jobless Claims: The labor market continues to defy expectations with its resilience, but cracks could appear. Jobless claims are expected to remain low, signaling a strong labor market. However, any unexpected rise in claims could suggest economic softening, which historically puts downward pressure on mortgage rates.
With Powell’s testimony and CPI data on deck, volatility could be the name of the game. What does this mean for you? This is your chance to get ahead – reach out to rate-sensitive clients now, stay agile with lock decisions, and be ready to pivot as data rolls in. Now is the time to stay proactive.
www.mortgagemaker.ai
👆"Intuitively show clients their long-term gains with Mortgage Maker AI—simplify data, close deals faster! 🏡📊"
Looking for a shortcut to gaining more clients, closing deals faster, and maximizing profits? Have you tried Mortgage Maker?
Picture this: A new borrower reaches out, eager but undecided. You know this industry. And in this industry, speed matters. The faster you respond, the better your chances.
With MortgageMaker.ai, there’s no scrambling. No spreadsheets. No stress.
Instead of scrambling, you plug in an address.
Boom.
A polished, data-rich report is ready in seconds.
Branded. Beautiful. Borrower-friendly.
The client is impressed. You’re ahead of the competition. And you didn’t even break a sweat!
Ready to work smarter, not harder?
Don’t wait – your next client could be a click away.
Take Mortgage Maker for a FREE 30-day test drive today!
In this week’s Pipeline Save, we had a Loan Officer (LO) write in about a purchase client who was, quite literally, out of qualifying money. But this wasn’t discovered on the first call to the borrower. This was on the day escrow opened!
Yep. Not great.
The borrower had just switched jobs, and all that they could provide was an offer letter riddled with contingencies that would take weeks to clear.
You can probably guess what happened next: underwriting took one look at it and promptly issued an all-expenses-paid ticket to loan approval purgatory.
(If you, like us, had a moment a few weeks ago where you heard cackling laughter coming from all angles, but couldn’t quite place it, it was probably that underwriting department issuing that contingency.)
At the moment, the LO felt like all was lost. The excitement of placing a borrower into a new home, turned into the stress of possibly losing that opportunity. The client was devastated, and the LO began scrambling for options. They reviewed every line item in the tax returns, every document, every notation from day one of the file, looking for any lifeline to keep the deal afloat.
The LO dug deep, and found the proverbial needle in the haystack: an IRA account. And as luck – or divine (mortgage-related) intervention – would have it, the borrower had just turned 59 ½ the week before! That crucial milestone meant the borrower could tap into their IRA without early withdrawal penalties.
An additional key factor was that there was enough money in the IRA to meet the 36-month continuance rule. Underwriting gave the green light, and the deal closed on time.
Boom! Crisis averted.
Imagine watching a last-second buzzer-beater, but instead of the ‘swoosh’ of the net, it was getting the keys to the borrower’s new home – pure magic.
But the takeaway here isn’t just about finding the additional money that could be qualified as income. It was about the persistence, creativity, and dogged determinism that this LO had, refusing to give up when the odds seemed stacked against them. The LO’s quick thinking, coupled with a deep knowledge of lender guidelines and an unwavering refusal to accept defeat, saved the day.
Sometimes the solution is hiding in plain sight; sometimes it requires you to dig a little deeper. The key is knowing where to look.
Reminder to send in your Pipeline Saves of the Week to team@mortgageminutenews.com to be featured in future newsletters!
If you’re one who likes to get deeply immersed in the actual data, you may be wondering why this matters. The answer is simple: consumer sentiment often acts as a leading indicator. When people feel more confident about buying homes, it tends to translate into action.
That’s good news for buyers, sellers, and everyone in between – including you!
I Dance, Dance...Real Estate Revolution?
Turns out, TikTok isn’t just for dance trends and threats of government bans anymore. It’s also the place where real estate agents and other industry professionals are turning quick videos into serious business growth, as this HousingWire article discusses.
In it, they highlight Kina Desantis, who went from rookie agent in 2020 to running a boutique brokerage with a whopping $89 million in sales by year four!
And she did it all without cold calls, door-knocking, or hiding in the bushes near “For Sale” signs. Nope, she did it through recording and posting educational videos on TikTok!
But her secret wasn’t getting the most eyeballs possible like many social media influencers strive for. Her secret was in simplicity – a focus on niche content.
By tailoring her channel to first-time and move-up buyers within her own market, Kira was able to scale up by becoming “locally famous.” With that hyper-targeted approach, she didn’t have to field calls halfway across the nation, allowing her to connect with the right audience – local prospective borrowers.
It doesn’t matter if you’re an agent, broker, loan officer, or many of the other industry professionals who rely on new sales to expand your business.
If you’re looking to increase your footprint in your local market, take note. Consistency, authenticity, and a willingness to adapt is key in modern social media marketing.
The takeaway is clear: your next lead might not come from a boring networking event or making a thousand cold calls – it could be by uploading your own TikTok video right now!
And if you still want to record a synchronized dance video every now and then, go right ahead. We won’t judge.
Did You Know?
Mortgage Maker is now on LinkedIn, Facebook, and Instagram! Follow us by clicking on the icons below for more news, information, articles, and commentaries on the mortgage lending industry!
📘Please also consider subscribing to the Mortgage Maker blog as a way to continue learning, engaging, and interacting, and to elevate your mortgage lending expertise. Sign up here.
Thank you for being a part of The Mortgage Minute community. Stay tuned for our next newsletter filled with more mortgage insights and tips!
Mortgage Maker, 27201 Puerta Real Suite 300, Mission Viejo, California 92691, United States, (650) 502-5002
