Rocket Fuel Newsletter – 10/14/2024

Have you ever wondered what happens to a Spirit Halloween store after Halloween? Introducing Spirit Christmas! The Halloween super chain will be trying their hand at a new holiday – opening 10 Spirit Christmas stores across the Northeast.

This week’s edition has September jobs data, August consumer credit and natural disaster relief strategy.

September employment situation

In September, nonfarm payroll jobs increased by 254,000, driven largely by a significant gain of 69,000 jobs in food services and drinking places. Average hourly wages for all private nonfarm employees increased by 0.4%, reaching $35.36 per hour, while wages for nonsupervisory employees rose by 0.3% to $30.33 per hour.

The unemployment rate remained steady at 4.1%.

Read the full report from the Bureau of Labor Statistics here.

Current state of consumer credit

The Federal Reserve released consumer credit data for August, showing an overall increase in consumer credit at a seasonally adjusted rate of 2.1%. This includes a 1.2% decline in revolving credit and a 3.3% increase in nonrevolving credit. This marks the second drop in revolving credit in three months, indicating a slowdown in credit card spending.

Read the full release from the Federal Reserve here.

Talkin’ TikTok

According to a recent analysis from Pew Research Center, U.S. adults prefer to use TikTok for entertainment and pop culture, rather than news and politics. Adults prefer fewer, smaller accounts while younger audiences tend to follow larger “mega influencers,” and more of them. Unsurprisingly, this suggests that adults have more niche interests.

Accounts that do post about news and politics tend to keep it light. In fact, 43% of these accounts also share content about pop culture and entertainment, while 36% include humor and comedy in their posts.

It looks like younger audiences and adults can agree on one thing – TikTok is not the place for serious political discussion.

Read the full analysis from Pew Research Center here.

Hurricane season is in full swing, and with natural disasters becoming more frequent and severe, state and local governments are increasingly bearing the upfront costs of recovery efforts.

Right now, 73% of counties with unresolved natural disaster claims have at least one reimbursement that has been pending for more than 2 years.

The chart below buckets the average time it takes for counties to be reimbursed by the federal government.

Counties With Pending Reimbursements (Source)

Reimbursement timelines are important because they impact various aspects of local government operations, especially cash flow. For example, as shown in the chart below:

The Fiscal Impacts Of Reimbursements (Source)

Over 20% of the time, “Investment in Public Works” is significantly affected by delays in reimbursement. Public works includes hospitals, schools, sewers, highways, etc.

One way to avoid delayed reimbursements and reduce the financial strain of natural disasters is by investing in climate-resilient infrastructure upfront. This proactive approach would improve a county's ability to withstand major storms and potentially lessen the impact of disasters. However, this strategy has faced resistance due to concerns over increased regulations and higher construction costs.

Overall, the disaster recovery process represents one of the prime examples of the need for strong intergovernmental partnerships.

David Vanderbrug, Sr. Mortgage Loan Officer, Pathway Mortgage

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

New home buyers, young families and people that have been working hard to get where they want to be homeownership wise. I spend a lot of time teaching and making sure the borrowers know what to expect and making sure the borrower is comfortable with all of the process.

And the flexibility is great. Being a single parent and working from home, making my own schedule for the most part and being able to be around when my family needs, but still having the ability to work and make money.

What's one thing you want to tackle this year, personally and professionally?

My biggest goal this year is to build a pipeline and book of realtor referrals so I can have a bit of mental calm. Going from a government job and regular paychecks to commission-based employment has been a bit of a learning curve.

What is one thing you want to learn this year?

Products and guidelines are always changing. The more I know them the more I can find ways to help people that have been told no, or even better products to cut down on their bottom-line costs to get their keys.

How do you want to grow your business?

Relationship building is key. Having a referral group of realtors, insurance agents and title companies is paramount. When you cultivate an actual relationship based on something more than “who can you bring me,” it goes a lot further.

Why Rocket Pro^SM TPO?

First and foremost, my Account Executive, Vera. She singlehandedly makes Rocket what it is for me. She has been nothing but supportive in dealing with me learning the process, teaching me products, to holding my hand and basically coloring me a picture so I understand sometimes.

But the portal, tech and support of the website is second to none. Underwriting, SOS, Frontline support etc. are great. Pricing and products, from ONE+ to HomeReady/Home Possible, to just the daily pricing, are great and really help when selling my services to a realtor.