Rocket Fuel Newsletter – 11/04/2024
Finally, no more texts and calls from “won’t stop texting, won’t stop calling” as election season comes to a close!
This week’s edition has economic data surprises, housing affordability and more ways to grow your business with Rocket.
Fuel up! 🚀
Home Sales Jump In September
Pending home sales in September saw a significant surge, rising 7.4% compared to the median forecast of just 0.7%. Buyers benefited from a drop in interest rates leading up to the Fed’s 50 bps rate cut. However, they've since lost that advantage as rates have climbed again due to a strong employment outlook and reduced expectations for further Fed cuts.
Consumer Confidence Rises Heading Into Holiday Season
Consumer confidence soared in October, with survey respondents noting optimism about the strong labor market. Confidence in purchasing big-ticket items like cars increased, but interest in housing remained low as high rates continue to keep potential buyers on the sidelines.
Big News Drop: 24 bps credit
Today we launched 24 Takeoff – a 24 bps credit on purchases and refis for conventional, VA and FHA loans through November 17. Some exclusions apply. Check out the full details here.
New Pro Performance Sales Training: Learn to serve those who served us
Tune in to this month’s Pro Performance Sales Training as we honor veterans by gaining important VA lending insights with Nathan Kyle, veteran and Divisional Vice President at Rocket Pro℠ TPO. Watch now to learn how you can better serve those who have served us.
The 2024 presidential election is here. As America casts its vote, the country eagerly awaits the outcome (and the end to all of the political text messages). One of the hot topics of this election cycle has been housing affordability – but how much does the president impact the housing market? Historically speaking, it might not be as much as you think.
Two of the biggest influences on housing affordability are interest rates and home prices.
Interest Rates
Within the context of the government, the Federal Reserve has the largest impact on mortgage rates. While the Fed does not directly set mortgage rates, its policies heavily influence the interest rate environment – which includes mortgage rates. One of the responsibilities of the president is to nominate the Fed Chairman. Some would argue that this means they play a key role in setting interest rates, but the nomination is roughly where the president’s influence stops. First, the nominee needs to be confirmed by the Senate. Additionally, the Fed is intentionally set up to be an independent body that is apolitical, focusing solely on their dual mandate of maximizing employment and maintaining stable prices.
Jerome Powell, current Chairman of the Fed, was nominated by Donald Trump in 2017 and again for a second term by Joe Biden in 2022 – spanning both sides of the aisle.
Housing Prices
During each of the last five administrations, the median sales price of a home has increased by over 12% from inauguration to departure. This steady upward trend has remained consistent regardless of who was in office, driven by a persistent housing shortage that continues to fuel an imbalance between supply and demand.
Over the past three decades, policies from five administrations have led to little change in the U.S. homeownership rate. Since Clinton took office in 1993, the rate has remained steady, fluctuating between 63% and 69%. During the last two administrations, it has varied by only a few percentage points.
With housing affordability at the forefront of this election, both presidential candidates vow to address housing affordability in a meaningful way. Kamala Harris has emphasized the need to increase the housing supply, while Donald Trump has his eyes set on reducing regulatory constraints. Despite their differences in policy, their goal is the same – to make housing more affordable. Achieving meaningful change, however, will require bipartisan cooperation, as there is no quick fix for the complex challenges facing the housing market.
What’s Next: California Mortgage Expo And OCN Mortgage Holiday Party
We had an amazing time at NAMB National, reconnecting with partners and meeting new faces in the mortgage world. The energy and conversations were fantastic, and we’re excited to keep that momentum going.
Next up is the California Mortgage Expo on November 5, and there’s still time to snag your free spot with code ROCKETFREE. We’ll also be at the OCN Mortgage Holiday Party on December 5. Don’t miss these opportunities to connect, collaborate and celebrate.
Sign up today with ROCKETFREE and we’ll see you there.
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.
Expanded options for Self-Employed Assist in Pathfinder
Exciting updates have been made to our Self-Employed Assist product to better serve your clients. Rural property eligibility now includes second homes, and the maximum number of business bank accounts for income verification has been expanded – making it easier for clients who split deposits across accounts to qualify for higher income.
Click the updates button on the Pathfinder Self-Employed Assist Product Overview page to learn more.
Self-Employed Assist Product Matrix
Self-Employed Assist Manual Income Calculator
Six solvers conquered last week’s puzzle in less than a minute, and only one did so in under 30 seconds. Congrats to our winner, whose time of 18 seconds was nearly half the time as second place’s 31 seconds.
This week’s puzzle gets 1 Rocket out of 5.
1 Client will receive 24 bps credit on all eligible loans locked through the Rocket Pro TPO portal during the promotional period. Offer valid from November 4, 2024, 10:00 am ET through November 17, 2014, 11:59 pm ET. Offer is not valid on Jumbo, Home Equity, or Bank Statement loans. This offer cannot be retroactively applied to previously closed or locked loans. Rocket Mortgage reserves the right to cancel/modify this offer at any time. Offer is nontransferable. Offer is not valid with any other discounts or promotions including ONE+ and Welcome Home RateBreak. Additional restrictions/conditions may apply. This is not a commitment to lend.
2 To qualify for this product, self-employed borrowers must provide up to 24 months of consecutive bank statements in addition to proof of ownership percentage and business documentation, which require the following: a business license, letter from tax preparer, Secretary of State filing and proof of ownership percentage (your mortgage expert will explain what documents are required for ownership percentage proof). Client must provide business purpose, goods or services, number of employees, location and business existence verification. Offer valid from December 16, 2022. Offer not valid on Texas 50(a)6 loans. Rocket Mortgage reserves the right to make any final lending decisions based on these factors or others. Additional conditions/restrictions may apply. This is not a commitment to lend. This product is not eligible for the Fast 15 promotion.