New Jobs Report May Fuel a Federal Rate Cut
When unemployment rises, this may seem like bad news, but sometimes there's a silver lining. Last month's employment data reflected a cooling jobs market, which suggests that we may finally see a rate cut from the Federal Reserve in September.
However, the Fed's decision-making doesn't hinge totally on unemployment numbers, as inflation data is a major driver as well. There are three more inflation reports before September, including one arriving this week.
For some home buyers and sellers, this data raises hopes of lower mortgage rates. However, uncertainty still abounds, as Fed policy may change if new inflation data is unfavorable. In addition, there's a presidential election coming in November.1
In The Mood for Some Multitasking?
Getting a real estate license was your first big step to your current career...but did you know that it can take you further? Here are some other ways you can benefit from your license, whether you're looking for a temporary gig or a major career change.
Real Estate Instructor
Think back to when you were studying to obtain your license. Would you be comfortable leading the class? Instructors generally choose to specialize in either pre-licensing courses or continuing education (CE). You should be comfortable with leading class discussions both online and in person.
Real Estate Writer
If you enjoy writing social media and blog articles, this could be an opportunity for additional income, or a new career. Ideally, you should be prepared to research and write anything from consumer-facing articles to property listing descriptions. A basic understanding of SEO is also valuable.
Property Manager
If you're an excellent problem-solver, this could be an ideal part- or full-time gig. Property managers screen potential tenants, prepare leases, show properties, and collect rent. Arranging repairs quickly and efficiently is another responsibility. Some states require additional certifications like Certified Property Manager, Certified Apartment Leasing Professional, and Master Property Manager.2
Neighbors Split on Shared Tree
We've all seen examples of "revenge houses", built for the purpose of making a hated neighbor, business rival or even relative unhappy. Now a single tree is the star of a battle straight out of the movie Grumpy Old Men.
Tired of constantly cleaning their car because of birds nesting in a neighbor's tree overhanging their driveway, homeowners in Sheffield, England finally called an arborist to remove every limb of the tree overhanging their driveway. This left the tree noticeably bare, and the neighbor who owned the tree extremely upset.
After an unknown visitor sent a photo of the tree to a national news station, others began turning up to view it, even leaving Google reviews for the Half Tree.
If you're wondering if these neighbors have reconciled...the latest news reports say no.3
Door-Knocking Data for 2024
While most agents avoid door-knocking for referrals, the 5.5% who use this as their main business generator are being rewarded for their sore feet. Here are some takeaways from a June 2024 survey that found that homeowners are more receptive to personal visits from agents than you may have realized.
- 73% of surveyed homeowners would be more likely to list a home with an agent who door-knocked on multiple occasions.
- 72% of homeowners prefer door-knocking as a marketing strategy over direct mail or telemarketing.
- Agents who focus on door-knocking report a direct referral rate of up to 11.1%.
- Agents reported that door-knocking leads to an average of one new listing for every 105 doors knocked.
Mortgage Rate Sticker Shock Continues to Fade
However, something you may not see in the news is that a growing number of buyers have accepted the 2023-2024 rate environment. Currently, 24% of homeowners have mortgages with a 5% rate or higher. This is a big change from just two years ago, when 90% of mortgages came in with rates under 5%.
Currently, there are almost six million fewer mortgages with rates under 5% in the market compared to 2022. Sharing this data with reluctant buyers may be helpful, together with a reminder that they're missing out on building equity.
Another intriguing bit of data: there's been a notable spike of 690,000 loans just below 7%. One mortgage analyst described this spike as borrower psychology. "There's clearly something appealing in today's market for a homeowner to see a 6-handle in front of their mortgage rate."5
Sources: 1redfin.com, 2theclose.com, 3independent.co.uk, 4gitnux.org, 5mpamag.com
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