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The Early Bird Gets the Refi: Outmaneuvering Competition in a Changing Market

The Rate Cut Buzz

The recent consumer price index report has sparked excitement about potential rate cuts. However, before we get too carried away, it’s important to remember that the day a rate cut happens, mortgage interest rates often increase. This is because the federal funds rate isn’t directly tied to mortgage rates. That said, a rate cut does mean your clients’ revolving and installment payments may decrease – provided they curb their credit card usage.

The Rate Forecast

Let’s cut to the chase: rates are going down, and all indications suggest a more favorable rate environment in the future. You don’t need to take our word for it – this news is everywhere, even making headlines on mainstream media like the Today Show.

What This Means for You

When mortgage rates become a topic on morning shows, two things happen:

Your past clients become aware of falling rates and start thinking about their options.
Your competition begins reaching out to these clients, or clients start responding to ads they see between segments on rates and weather.

The question is: are you going to be proactive and contact your clients first, or will you wait until it’s convenient for you?

The Importance of Marketing

As the great Vince Lombardi might have said if he were in our industry, “Marketing isn’t everything, it’s the only thing.” Waiting for the perfect time to market is like the sign in the Iron Door Saloon (the oldest in California, by the way) that promises “Free Beer Tomorrow.” That perfect time never comes.

California Wildfire Assistance Program

On a different note, we want to highlight an important opportunity. Through the REcover CA program, the state of California is offering up to $350,000 per affected family from the devastating wildfires. This applies to homeowners, renters, and even those who know someone who lost a home. Funds are limited, so if you or someone you know has been affected, reach out to us immediately.

Weekend Strategy: Open House Visits

As we approach the weekend, consider taking a couple of hours to visit local open houses. It might seem old-fashioned, but the ROI can be fantastic. Here’s why:

If you have a listing, you’re doing business where it matters.
If it’s not your listing, you’re networking with hungry agents.
In a slower market, your presence can energize a potentially quiet open house.
It’s an opportunity to discuss unique programs that other agents might not know about.
This strategy helps you stand out in a crowd that’s largely abandoned this practice.

Looking Ahead

With rates projected to decrease, you’ll likely see an uptick in refinancing business. But why stop there? Lower interest rates also mean potential buyers, renters, and sellers are thinking about getting back into the market. By being proactive now, you’re positioning yourself to capitalize on these opportunities.

Remember, as Albert Einstein said, “Timing is everything.” Don’t wait for the perfect moment – create it.