The Double Comma Club

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Guides for You to Help Your Clients Design a Strategy to Maintain and Hold On

March 20, 2020

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What's the state of the market? If you think about where people's heads are, where their fear is right now, they're trying to control anything. Anything. If I can control the milk that I have in the refrigerator and the toilet paper that I have in the closet, I feel like I've got some of my control back. Toilet paper and milk are fundamental. It goes back to being a youth. This wasn't a matter of a run specifically on toilet paper.

There's too much going on to leave it to chance. Customers still want that zero rate. It doesn't work like that. As the Fed rate in the chart below, the blue line is the federal funds rate and the red line is our 30-year fixed mortgage rate. 

Please note specifically the area from December 2008 to December 2012. That Fed rate was zero. It was on the bottom, which is where we just went, and that mortgage rate never went below three. In fact, that rate was between 3.3 and 5.5 for those entire seven years. Never two. Never 2.7 or even three. It was 3.3 was the lowest. Anybody that can get a three and a quarter, they better run and get that. We're watching the rates right now and Freddie Mac is always a week behind, so this will pop up even further when it comes out. But we're watching what those rates are and I'm watching them every single day. I'm calling the people that I can and we're getting them locked when we can and it makes sense.

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Please note specifically the area from December 2008 to December 2012. That Fed rate was zero. It was on the bottom, which is where we just went, and that mortgage rate never went below three. In fact, that rate was between 3.3 and 5.5 for those entire seven years. Never two. Never 2.7 or even three. It was 3.3 was the lowest. Anybody that can get a three and a quarter, they better run and get that. We're watching the rates right now and Freddie Mac is always a week behind, so this will pop up even further when it comes out. But we're watching what those rates are and I'm watching them every single day. I'm calling the people that I can and we're getting them locked when we can and it makes sense.

We can't get all wrapped up in the fear of it any more than we can the coronavirus. I don't want one more email telling me about COVID-19 update, right? I know it's going on. Ask yourself these questions:

  • How am I relating to my clients?
  • How am I the rock to them?
  • How am I expressing positivity and looking for the silver lining?

It's about talking about housing because housing is where it's at. Housing is going to be the thing. It came in strong and it's going to leave strong and it's going to be the thing that continues to grow well. Help your clients not lose their house. Help your clients design a strategy to maintain, hold on, this is not going to last that long. This recession was going to happen regardless.

Listen to the full episode for valuable insights and information you can share with your clients.

This show is produced and sponsored by The Rueth Team, with your host, Nicole Rueth.

Your home purchase has a long term impact on your ability to build financial wealth. We at the Rueth Team will continue to be alongside you well beyond the closing table. Whether helping to refinance a loan, transitioning to your next home, or building multigenerational wealth through investments, we are committed to finding YOU solutions other lenders can’t… or simply won’t.

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