Boost Listings with This Simple Strategy

Fall is in the air, and I’m loving it! The weather is finally cooling down, and Pumpkin Spice season is officially here. Now, let’s break down another eventful week in the mortgage and real estate world.

Lets dive in!

Read time: ~4 minutes

Rates ended SLIGHTLY HIGHER compared to last week, and volatility was HIGH. Rates are in the mid-6 range for most loan types without paying discount points. Paying discount points can get you in the low 6’s.

Explain the Recent Rate Increase like a 6th Grader!

Three weeks ago, the Fed cut rates by 0.50%, and it sparked a lot of excitement in the market.

Right after that, we saw a surge of excitement from new buyers and people looking to refinance. The possibility of locking in a lower rate was just what the market needed to pick up some steam! But to everyone’s surprise, mortgage rates have actually increased by 0.50% since the Fed's announcement!

If you are new to my newsletter, it is important to know that mortgage rates are not directly set by the Fed. While the Fed has some influence, the 10-Year Treasury bond is the main driver of mortgage rates. As you can see in the chart below, the two move in close sync.

So why have mortgage rates INCREASED since the Fed cut rates?

The 10-Year Treasury yield has shot up over the last few weeks.

The 10-Year Treasury is driven by investors’ expectations around inflation, jobs, and the overall economy. Since the Fed’s rate cut in mid-September, several key economic indicators—like GDP, wages, retail sales, and company earnings—have been better than expected.

Inflation worries also crept back due to things like port strikes and hurricanes.

The biggest push came from a jobs report that showed 100,000 more jobs added than expected, along with a small drop in the unemployment rate.

More jobs + Strong economic data + Sticky inflation = Higher 10-Year Treasury = Higher mortgage rates.

Buying a Starter Home Cost Less than a Year Ago

Even though interest rates have inched up over the past few weeks, there’s a silver lining—according to Redfin, buying a starter home now costs less than it did a year ago.

The average housing payment for homebuyers is $2,526, which is 5.8% lower than at this time last year.

What does that mean for buyers?

It means that purchasing a starter home is more affordable today than it was a year ago. 😮

While these lower rates and payments are encouraging some buyers to re-enter the market, it’s important to note that purchase mortgage demand is still lagging behind. In fact, it remains lower than even the lowest points we saw during the housing market crash.

One key factor that could help is more inventory. A larger supply of homes can reignite interest from buyers who have been holding off, and it may even help bring down home prices, making it easier for buyers to afford a home. This is where boosting listings becomes essential, and I’ve got a simple strategy to help you do just that. 👇

Boost Listings with This Simple Strategy

Want an easy way to secure more listings? The Zestimate Text Strategy is a proven method for getting the conversation started with past clients.

We all know Zestimates can be a headache—often inaccurate and confusing for buyers and sellers—but this quarter, we can turn that around and use them to your advantage.

Zestimates have a 3.2% margin of error for listed homes and a 7.5% margin for off-market properties. By sending a quick text (detailed in the playbook below) to past clients with their home’s Zestimate, you can open up conversations that lead to new listings. People love discussing their home’s value, and this simple text gets them thinking about real numbers.

Curious about how it works? Click below for the complete guide to help you use this strategy and boost your listings.

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