"Real Estate Revolution: NAR and SoFi Team Up for Unprecedented Financial Wellness Boost!"

Trivia Question❓

In the 1990 film "Home Alone," Kevin McCallister outsmarts burglars by setting up booby traps in his family's large suburban home. What is the estimated current value of the McCallister house, located in Winnetka, Illinois?

Answer at the bottom of the newsletter

Let's Talk About Rates

I usually show the 3 month chart but I'm realizing just how bad my eyes are getting so let's zoom in to 1 month and push back father time a smidge.

Hop in your Deloreans, folks. We're going back in time!

No Fed Rate Cut Last Week...

And Maybe None This Year?

How did I have the same headline to this section last week?

The easy answer would be that I forgot to change it. lol Sorry. Not this time.

This time it's because it's the same talk in the mortgage interest rates Fed circles.

My consensus is the consensus is contemptible.

(or full of it if you prefer!)

Oh Jason. Whatever do you mean?

I mean the idea that CPI numbers could be higher by 0.1 and send the entire market...stocks, bonds, mortgage backed securities, etc... into a tailspin is laughable.

I'm not saying it was a welcome diversion from what everyone expected but the fact that the "estimates" weren't higher and the "what do we do if the numbers suck?" was apparently left out of the trading behavior leading up to Wednesday's CPI report.

The Saving Grace of Rates

As we look over the past week (start at the right side of the chart and count backwards through 6 days/candles) we see the 10 Year Bond Yield was at 4.375 at the close last Friday.

Are we back there? No. No we're not.

But Monday opened up higher at a smidge over 4.45 and Tuesday dropped and closed even lower at a bit under 4.375.

Wednesday (CPI report day) bond yields opened lower at under 4.35 and then cruised up to 4.6ish. That's a big ugly move, ain't it?

Yesterday we popped up higher and basically closed at the same higher opening number after going a little above and a bunch below. Good thing that candle is a doji.

And now today... here we are at 4.487 as I'm writing this at 2:30pm. We opened below yeseterday's low of the day and we're lower still.

If CPI was soooo bad to cause Wednesday dumpster fire, how can we be improving so much today?

Take note, if Wednesday didn't happen and the rest of the week made the same moves anyway, the yield would be down below 4.325 towards 4.30!

I looked back on our VA rates over the past week. From Friday to Friday... here's the unvarnished truth.

The cost per rate is roughly 1% higher. Cost to the borrower, not add on to the rate. Big difference.

Friday we had a standard VA purchase at a rate of 6.25% with roughly 0.5pt cost. Today, the same 6.25% rate costs a little under 1.5pts... or the same 1/2 point cost will get you 6.5%.

So we're off by 0.25 on rate or about 1% on cost. It's certainly worse but not astronomically as the whole "the sky is falling" crowd would like you to think.

Last thought here. A doji (see link above) is a reversal indicator, especially after a big long run up as we've seen on the 10 year bond yields. It formed and today we reversed course. Surprised? Me neither. It's what it's supposed to do.

Outside of more tomfoolery with next week's economic data, I see no reason for the reversal not to continue and who knows, a few more down days and the entire chart might indicate a bearish trend.

Maybe I'm just optimsitic and don't know what I'm talking about. But I'm cynical by nature, so I doubt it's just hope. 😉

And don't forget... you can always spot check rates without giving out your social, your email, your phone number or even your name at:

https://themortgage.app/rates

Just The Tip

Tip of The Day

When creating content as a real estate agent, remember to showcase the unique features and personality of each property.

Tell a story through your listings by highlighting what makes each home special and inviting potential buyers to envision themselves living there.

This personal touch can make all the difference in attracting interested clients and setting yourself apart in a competitive market.

Need help putting content together and finding a story telling angle? Use my CustomGPT I've affectionately named "Marketing Monkey"

Happy Content Creating!

PS: I've put together a class called "ChatGPT for Real Estate Agents" that I think (or hope) you will love. Text me at 919-646-6869 or email me at jason@themortgage.app and let's set up a time for me to put on a class in your office.

Current Specials

Let's Help WCPSS Teachers & Staff

and Relocating Families

What's New at NAR?

"NAR and SoFi Partnership Enhances Financial Wellness for Real Estate Professionals"

Editorial Commentary:
Ain't that just the sweetest thing you could do after making it more difficult to earn a living!

The National Association of Realtors recently announced a partnership with SoFi, aiming to provide financial wellness resources to real estate professionals.

This collaboration will offer NAR members access to SoFi's financial tools and educational content, empowering them to make informed decisions regarding their finances.

By joining forces with SoFi, NAR seeks to support real estate professionals in achieving financial stability and success, highlighting the importance of financial literacy within the industry.

This partnership represents a significant step towards equipping agents with the resources needed to navigate the complexities of the real estate market while prioritizing their financial well-being.

In Better News... Much Much Better News

FHA weighed in on the whole NAR Settlement and instead of giving you my two cents, I'll just copy and paste. (my fingers hurt and it's getting to be kinda late in the day)

From https://answers.hud.gov...

Question

Is the Federal Housing Administration (FHA) issuing any new guidance to address the impacts of the proposed new rules from the National Association of Realtors (NAR) settlement related to the payment of real estate commissions?

Answer

Under existing Federal Housing Administration (FHA) policy, if sellers continue to pay buyer-side real estate agent commissions and fees as a matter of state or local law or local custom, and if the commissions and fees are reasonable in amount, existing policy would not treat those payments as interested party contributions provided all other agency requirements are met.

FHA plans to continue to carefully monitor the real estate marketplace for any new practices resulting from the settlement that could require changes to policies. FHA will review these changes in the marketplace to how these practices might be accommodated within existing authorities.

For additional information see Handbook 4000.1 II.A.4.d.i(B)(2)(i); II.A.4.d.iii(G)-(H); II.A.5.c.i(B)(2)(i); and II.A.5.c.iii(G)-(H) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

Do You Use HomeIQ?

It's easily one of my favorite tools and you can get it for free! Everyone loves free. 😉

Click Here To Get HomeIQ For FREE

Interesting Facts

90210... or something like that

Interesting Facts

Did you know that one of the most expensive zip codes in Wake County, NC is 27523, where the median home price is $1.2 million? There's a story about a family who found their dream home in this zip code and negotiated a great deal, showcasing the level of luxury living in the area.

In zip code 27614, you'll find homes with stunning lake views and spacious estates, with a median price of $900,

A couple looking to downsize actually found their perfect retirement home here, highlighting the diverse range of properties available.

Zip code 27587 boasts luxury properties with sprawling gardens and private amenities, with a median price of $850,

A young entrepreneur invested in a property in this zip code, starting a successful home-based business and embracing the upscale lifestyle offered in the area.

The Return of the Tip

Secret Little Hack

One secret hack for marketing to your database is to personalize your communications.

Instead of sending generic messages to your entire list, segment your database based on interests, past interactions, or demographics.

By tailoring your marketing efforts to specific groups within your database, you can create more targeted and compelling content that resonates with individual preferences.

This personalized approach can lead to higher engagement rates and conversions, ultimately maximizing the effectiveness of your marketing campaigns.

Remember, the key is to make each contact feel valued and understood, fostering a stronger connection and loyalty to your brand.

Real Estate CRMs for Lead Nurturing and Client Loyalty

To nurture leads and transform them into loyal clients, a high-functioning CRM tool with robust features, integrations, and automation is key.

As a real estate professional, ensuring efficient communication with an expanding client base is vital for success.

The best real estate CRM solutions cater to the unique needs of solo agents, teams, and brokerages, offering features like task automation, pipeline management, and integration with commonly used tools.

Whether you're a newly licensed agent or leading a large-scale operation, leveraging these CRMs can turn everyday challenges into opportunities for growth and success in the competitive real estate landscape.

To make an informed choice, consider your specific business requirements and desired CRM functionalities. Explore industry-specific CRM solutions like Real Geeks, LionDesk, Follow Up Boss, Wise Agent, and REsimpli to elevate your real estate operations and drive sustainable growth.

Lots of great options... so how do you choose?

You can test, and retest, find something you think you like, get shiny object syndrome and look at something else and basically spin your wheels for months (I've certainly done that).

Or... Hit me up and get access to an all in one CRM platform built out specifically for Realtors for a whopping...

... drum roll...

$25 per month or $500 per year. Whatever you prefer.

And yes, you can reach out just to ask questions about it. I'm happy to help take a tech piece off your plate.

Quote of the Day

Quote Of The Day

People buy YOU before they buy from you!

That's it for the Friday Rate edition. If there's anything I can do for you, don't hesitate to reach out.

If you're working, I'm working. Have an amazing weekend.

Until next time!

Jason Iacovelli
Sr. Loan Officer
NMLS #3370
TheMortgage.App at Canopy Mortgage
Ph: 919.646.6869

Email: jason@themortgage.app

💡 Answer to Trivia Question:

The estimated current value of the McCallister house from "Home Alone" is around $2.5 million according to Redfin.