Rates
Rates came of there high of the week, to settle just slightly worse than last week, most won’t notice the worsening too much, but we are definitely better than where we were on Monday.
Monday we say rate rise on comments from one of the Federal Reserve board members, pretty much saying they are going to raise rates in September, but was this really worthy news.
Most traders are hedging their bets on a Federal Funds rate increase in September, and then from there we will have to see how long it will take the Federal Reserve to get the FF rate back to 2%, right now it is pretty much ZERO.
For the next 60 days this will be the dominant story that will affect mortgage rates, we might get some ticks up or down from economic numbers, or Greece or China, but all eyes are now going to be on the Federal Reserve.
But let’s still go over some economic numbers:
-Personal Income 0.4% vs est. 0.3%
-ISM manufacturing 52.7 vs est. 53.7 a miss, but not enough to worry people, yet.
-Factory orders 1.8% vs est. 1.8%, positive.
-ADP private payroll, 185,000 added vs est. of 220,000, big miss, but still positive.
-Weekly Jobless Claims 270,000 vs est. of 272,000, Still lower than the 70’s, very positive.
And the big one for the week, Non-Farm Payroll, 215,000 new jobs on an estimate of 220,000, so miss, but not by much, last 2 months were revised by a net of 14,000. Unemployment rate is still 5.3% and average hourly wage only increased by 0.2%.
Pretty close to what the market expected and I feel gives the Fed more ammo to raise rates in September.
These next 60 day, rates are going to be even more crazy than they have been in the last year. Looks like the Fed will meet September 16-17, with the policy statement on the 17th.
Too much risk, gamble on a float for the next 2 weeks, but after that lock it. IF the Fed raises rates on the 17th, and by the expected .25, we will see a sell off and higher rates. If the Fed doesn’t increase rates, we could see a nice rally, depending upon what the Fed says in the statement.
Appraisal Reconsideration
Don’t forget, if you get an appraisal that comes in undervalue, it is NOT the end of the world, take a look at the web site I set up, it has been reviewed by numerous appraisers and they like it.
http://www.375loan.com/resources/appraisal_reconsideration/
Lead Generator
Listing:
Typically a Realtor will get a listing, take pictures, get ListingBooster going, input into MLS, sign, flyers. But is that all…??
Do you go to the neighbors, introduce yourself, tell them the house is listed and to watch out for it, especially if it is vacant. Maybe give the neighbor a card and a flyer?
This is the bare minimum, but what would happen if you handed the neighbor of your listing a:
-Flyer
-Your Business Card
-A CMA of their home, which they didn’t ask for, but you went out of your way to create it, and hand it to them for their knowledge!!!
Oh, but you come to find out that they are just renting the home..BOOM..ask them why they are not buying that home?
Plus it is easy to do CMA of the neighbors, because you already did a CMA for your listing, you just need to make some small adjustments and update pictures.