Rocket Fuel Newsletter – 08/26/2024

In this edition: The Fed has their yearly meeting in Jackson Hole, more signs that a rate cut is coming and one extremely lucky way to pay off your new mortgage.

How did Benny from North Carolina pay off his nearly $500,000 mortgage the day after it closed?

Fuel Up! 🚀

Jobs Number Revised Down

The Bureau of Labor Statistics revised the payroll number from April 2023 to March 2024 down by over 800,000. This adds to the growing concerns that the economy may not be as strong as most thought.

Simply put, this revision means the average monthly job gain over the period is closer to 175,000 per month instead of the original 242,000.

Initial Jobless Claims Come In As Expected

Initial jobless claims for the week ending August 17 rose to 232,000, which was in line with expectations. This data suggests that the labor market is cooling gradually but is still steady.

Continuing claims rose slightly to 1.86 million, which is an indication that when someone leaves or loses their job, they are having a slightly harder time finding a new one.

Home Prices Continue Rising

The median price of a home in the U.S. climbed 4.2% in July and reached $422,000. This is the 13^th straight month of annual price increases and is being driven by the limited inventory.

To that end, the inventory of unsold existing homes increased slightly by 0.8% to 1.33 million homes at the end of July. This is equal to 4 months of supply at the current pace of sales, below the 6 months needed for the market to begin balancing out.

Tell us about some of the biggest lessons you’ve learned in your tenure.

One of the biggest lessons we've learned is the importance of clear and open communication with our clients. Keeping them informed [and providing] simple answers to their questions at every step of the process helps build trust and ensures a smoother transaction. Additionally, we've learned the value of staying adaptable and open to new technologies and market trends.

What is one thing you wish you knew when you got started?

We wish we had known just how important it is to build a strong network of industry partners. From real estate agents to financial advisors, having a solid network can significantly enhance the services we provide and lead to more successful outcomes for our clients.

What’s your favorite thing about being in this industry?

Our favorite thing about being in the mortgage industry is helping people achieve their dream of homeownership. There's nothing more rewarding than seeing the joy on our clients' faces when they close on their new home. It's a privilege to be a part of such a significant milestone in their lives.

What is something you are incredibly proud of within your business?

We are incredibly proud of the strong relationships we've built with our clients. Many of our clients come back to us for their mortgage needs time and again, and they frequently refer friends and family to us. This loyalty is a testament to the high level of service and trust we strive to maintain.

What are you most excited about for the future?

We are most excited about the advancements in technology that are making the mortgage process faster and more efficient. Embracing these innovations will allow us to provide an even better experience for our clients, making homeownership more accessible and streamlined.

What is your “why”?

Our "why" is simple: to help people achieve their dreams of homeownership and financial stability. We believe that owning a home is a cornerstone of the American dream, and we are dedicated to making that dream a reality for as many people as possible.

Over the weekend, the financial world was up in the mountains as the Kansas City Federal Reserve’s annual invite-only summit in Jackson Hole, Wyoming, took place. Everyone is dialed into the sentiment and word choices of Fed governors, particularly those of Chairman Jerome Powell, as we navigate the reversal in interest rates and the Fed begins to shift its focus from preventing runaway inflation to focusing on the other part of its dual mandate – full employment.

Many have been talking about the unemployment jump last month to 4.3%, but compared to the long-term trend and rules of thumb, that unemployment figure still represents “full employment” (which is typically thought of as 5% due to structural unemployment as people naturally move and switch jobs).

Additionally, much chatter has also been made over the last week since the Bureau of Labor Statistics, who are responsible for publishing the monthly Non-Farm Payrolls report (THE jobs report). As covered above in Biz Buzz, the BLS revised the total number of jobs added over the last year down over 800k!

At this point, a September rate cut seems to be a forgone conclusion – the only uncertainty remains to be how much the Fed will cut, 25 or 50 bps?

We love All Access week! Once again, Rocket Pro TPO had the immense privilege of welcoming an elite class of loan officers, processors and real estate agents to our home in Detroit to learn who we are, see all that we offer the broker community, and share a fireside chat with Fawaz and Chief Revenue Officer Austin Niemiec. We can’t wait to do it again in November!

We had a fantastic turnout at Originator Connect in Las Vegas! Thank you to everyone who either engaged with us in our booth, took in Fawaz’s keynote address or both!

Couldn’t make it to Vegas? We’re also the title sponsor of the Texas Mortgage Roundup on Thursday, September 5, in Dallas, and our own Chris Behrns will be delivering the keynote address. Use promo code ROCKETFREE to get your free ticket!

Bryan and Mike C FLEW through last week’s puzzle! Bryan’s time of 12 seconds beat Mike’s 19, but both of them were in a league of their own; 11 others completed it in a minute or less, but no one faster than 44 seconds. Great work!

This week’s puzzle gets 5 Rockets out of 5.

Click here to solve!