It's been said that history repeats itself. That seems to be the case as we approach the end of the Fed's big Bond-buying program. Read on to learn why.
|In recent weeks, Stocks have seen a sell-off while Mortgage Bonds have pushed considerably higher. Why has this happened? Concerns about slowing global economic growth have pushed investors into the safe haven of the Bond market, and investors have also secured profits with Stock prices near all-time highs.
But there's another reason that's important to mention. After the first and second rounds of the Fed's Bond-buying program (known as Quantitative Easing) ended, Stocks performed terribly—and that behavior seems to be repeating itself as the Fed's latest version of its Bond-buying program is nearing its end later this month. But that's not all that could impact the markets in coming weeks. If corporate earnings are worse than expected, Stocks could continue to drift lower, meaning Bonds and home loan rates could continue to benefit. This will be a key story to monitor in the weeks ahead.
In housing news, research firm CoreLogic reported that home prices rose by 6.45 percent from August 2013 to August 2014, which is down from the annual figure reported in July. CoreLogic went on to say that home prices are 12.1 percent below the peak seen in April 2006. Looking forward, prices are expected to increase 5.2 percent from August 2014 to August 2015. The takeaway from this is that home price gains have slowed to more normal and sustainable levels, after the large appreciation seen last year.
The bottom line is that home loan rates remain near some of their best levels of the year, and now is a great time to consider a home purchase or refinance. Let me know if I can answer any questions at all for you or your clients.
|Forecast for the Week|
|After Monday's market closure in celebration of Columbus Day, the second half of the week features a busy economic calendar.
When you see these Bond prices moving higher, it means home loan rates are improving—and when they are moving lower, home loan rates are getting worse.
To go one step further—a red "candle" means that MBS worsened during the day, while a green "candle" means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.
As you can see in the chart below, Bonds have improved recently, helping home loan rates remain near their best levels in the last year.
Chart: Fannie Mae 4.0% Mortgage Bond (Friday Ocotber 10, 2014)
|The Mortgage Market Guide View...|
|7 Steps to Creating a Great Customer Experience
Providing a memorable customer experience doesn't require bells and whistles. The bottom line is people want to feel appreciated and valued. Paying attention to the basics below will yield big results.
Make it easy. Map out your customers' experience and analyze it from their perspective. When do they first engage with you? When do they stop? What happens each step of the way? Identify ways to make it easier for them to do business with you.
Smile and greet people. Whether in person or on the phone, smile and be welcoming. Your voice and demeanor will make customers feel valued.
Offer options. It happens. When you're not able to meet a customer's need for a specific product or service, don't just say no. Offer options. These may be alternative products or services, or recommending a different organization. Offering options shows you're listening and you care.
Embrace criticism. Good suggestions aren't always wrapped in the prettiest of packages. Move beyond your customers' approach and listen to the issues they are expressing. Identify opportunities to improve the customer experience.
Preserve the relationship. Satisfied customers are a great source for repeat business and referrals. When you've concluded a transaction or consultation, say, "Please give me a call if I can be of further assistance." Ask for referrals, and make sure you provide contact information.
Always say thank you. You learned this lesson as a toddler. Your customers will feel valued when you say thanks, be it for stopping in, offering feedback, or choosing you to meet their needs.
Send a handwritten note. While emails and texting have made it easier to communicate quickly, nothing beats a handwritten note. These timeless treasures show you made the extra effort to reach out.
As always, please feel free to pass these tips along to your team, colleagues and clients!
Economic Calendar for the Week of October 13 – October 17
|For professional use only. Not intended for consumer distribution.
For information purposes only and is not a commitment to lend. Programs, rates, terms and conditions are subject to change at any time. Availability dependent upon approved credit and documentation, acceptable appraisal, and market conditions. Not all programs available in all areas. Residential Mortgage Services, Inc. is a Maine Corporation headquartered at 24 Christopher Toppi Drive, South Portland, ME 04106. NMLS ID #1760 (www.nmlsconsumeraccess.org); ME Supervised Lender License #SLM2537; CT Mortgage Correspondent Lender License #14352; Licensed by the Delaware State Bank Commissioner to engage in business in Delaware, License #017813; FL Mortgage Lender License #MLD232; MA Mortgage Lender License #MC1760; MA Mortgage Broker License #MC1760; MD License #21114; Licensed by the New Hampshire Banking Department, NH Mortgage Banker License #8816-MB; Licensed NJ first mortgage lender; Ohio MB Exemption MBMB.850210.000; PA Licensed Mortgage Lender #44857; RI Licensed Lender #20092626LL; RI Licensed Loan Broker #20122931LB; Mortgage Lender/Broker, VA Corp. Commission #MC-5816.