Rocket Fuel Newsletter – 10/28/2024
While Halloween thrills may end on October 31, the spooky season lingers for many in the form of "daylight saving scaries." With the end of daylight saving time approaching, around 40% of people are dreading the clock change, according to a recent survey – and the struggle lasts for weeks. The shift to shorter, darker days disrupts sleep patterns, lowers energy levels and even affects productivity and mood. On the bright side, we do get an extra hour of sleep, right?
This week’s edition explores the impact of Hurricanes Milton and Helene, forecasted mortgage rates and upcoming trade show events.
Fuel up! 🚀
Florida’s insurance crisis after back-to-back hurricanes.
Florida homeowners are facing skyrocketing insurance costs after two major hurricanes – Milton and Helene – hit the state within 2 weeks. Residents are worried about losing coverage or seeing even higher premiums as insurers pull back from the state.
Hurricane Milton alone caused insured wind and flood losses estimated at $17 billion – $28 billion, with significant damage in coastal areas like Sarasota. While the state-backed insurer Citizens is taking on more policies, many homeowners worry this may not be enough to address the growing crisis.
Mortgage rates set to cool off.
Fannie Mae’s latest report shows the U.S. economy is holding up better than expected, with growth projected at 2.3% through 2024. Mortgage rates are on track to decline, with the ESR Group forecasting a 6% drop by the end of the year and further easing into 2025.
While home prices are still rising, ongoing affordability efforts and increasing housing inventory could help balance the market. Buyers may find more opportunities as rates dip and housing supply catches up.
Single-family home building on the rise.
U.S. single-family home building reached a 5-month high in September, marking a solid 2.7% increase to a seasonally adjusted annual rate of 1.027 million units.
While overall permits for future construction saw a slight uptick, the trend still reflects a cautious optimism in the market as many prospective buyers are holding out for more favorable mortgage rates.
Free training: Learn to serve those who served us.
Join us on Friday, November 15, at 2:00 p.m. ET for an insightful training session designed to help you better engage and serve veteran clients. Learn how to effectively market to and meet the needs of this unique demographic and discover strategies to grow your business by understanding the voice of the veteran. Sign up today.
A couple of years into the "higher for longer" interest rate environment, home prices have yet to see the decline some analysts predicted. Despite rising living costs, the economy has managed to avoid a recession so far. This situation mirrors the 1980s, when higher interest rates significantly reduced home sales, but home prices stayed stable as inflation pushed up the overall cost of homeownership.
As we enter the fall season, home sales are dipping, but there's optimism for the future. The Mortgage Bankers Association (MBA) forecasts about 300,000 more purchase originations in 2025 compared to 2024.
Refinance volumes have picked up in recent months but slowed again as interest rates rose following another strong month of job data.
Purchase volumes are also rate-sensitive at this point, with the limited supply of affordable homes and restricted ability to finance larger loans.
The market has been eagerly anticipating rate cuts since the Fed swiftly raised rates to curb runaway inflation. However, it has consistently overestimated how quickly or significantly the Federal Open Market Committee (FOMC) would lower rates. Fed Chair Jerome Powell has remained firm, determined not to repeat the mistakes of previous Fed leaders who acted too hastily.
Though Powell has shown patience, rate cuts seem likely on the horizon as the consumer price index falls below 2018 levels and employment begins to soften.
Join us at the California Mortgage Expo – free registration!
Don’t miss this chance to connect with us in person at the California Mortgage Expo on November 5 where you'll hear from keynote speaker Dan Welch, Rocket Pro TPO Divisional Vice President. Use our exclusive code ROCKETFREE to sign up for free and secure your spot today.
Here's our full list of events:
- California Mortgage Expo in Pasadena on November 5, where you’ll hear from keynote speaker Dan Welch, Rocket Pro TPO Divisional Vice President.
- Texas Mortgage Roundup in Houston on November 14.
- OCN Mortgage Holiday Party in Irvine on December 5.
- New England Mortgage Expo in on January 15-17, where you'll hear keynotes from Mike Fawaz, Rocket Pro TPO Executive Vice President and Don Chiesa, Rocket Pro TPO Vice President.
These events are the perfect opportunity to strengthen our partnership. Let’s chat about your business needs, new solutions or market challenges. We’re excited to see you there.
Last chance to offer your clients a $0 Home Equity Loan fee.
Don’t let your clients miss out – until November 3, Rocket is covering the $795 origination fee on Home Equity Loans.
With loans up to $500,000 and automated valuation models on loans up to $400,000, now is the time to take advantage of this opportunity. Register a Home Equity Loan today.
Marketing Hub Materials: Home Equity Loan
There were lots of great times last week! Our winner came in at 16 seconds, and another 10 solvers finished in less than a minute. Let’s keep it going this week!
This week’s puzzle gets 2 Rockets out of 5.
