Let's talk about Interest Rates 

"What do you think rates are going to do?" This is a common question Loan Officers must frequently answer.

Loan officers should respectfully and directly answer this key client question to ensure maximum customer satisfaction. Why? As we all know, you never get a second chance to make an excellent first impression. The confidence, manner, content, and concise nature in which this question is answered is critical to gaining a customer's "buy in".

I learned the ‘PEG’ model from Xinnix, The Mortgage Academy.  It is an acronym for:

-       Present (Present Market Conditions)

-       Expectations (Expected Forecast)

-       Guidance (Client Specific advice)

Present Market Conditions

Attributed to Sean Becketti, Chief Economist - Freddie Mac:

"Investors flocked to the safety of government bonds causing the 10-year Treasury yield to continue its descent following the FOMC's decision to leave rates unchanged. The 30-year fixed-rate mortgage responded by dropping 6 basis points before landing at 3.42 percent -- a ten-week low. The course of the economy is uncertain, yet consumers continue to be a bright spot. The September consumer confidence index is up 3 percent to 104.1, exceeding forecasts and reaching a new cycle high."

Expectations

The most important data for this week is the monthly Employment report being published on Friday. This data reporting the number of jobs, Unemployment Rate, and wage inflation is always some of the most highly anticipated economic data of the month. Prior to that, ISM national manufacturing index along with Construction Spending will be out on Monday. ISM national services index, Factory Orders and the ADP Employment change data will follow on Wednesday.

Guidance

Mortgage rates should continue to show little movement and still hold near their lowest point for the year. It is a perfect time to meet with your mortgage professional to take advantage of the lowest interest rates in 3 years!

By: Mason Fowler at Movement Mortgage. Get pre-approved HERE