Mortgage Mystery

Splits and Caps Daily: Action for Agents

January 16, 2025

📈 Market Move:

Rogue Rates

If you’ve been watching the Fed cut rates and expecting mortgage rates to follow, you’re not alone — and probably a little frustrated. Here’s the deal: mortgage rates are playing by a different set of rules right now.

Even though the Fed dropped its benchmark rate in December, 30-year mortgage rates have been climbing, recently hitting their highest levels since July. Why? It all comes down to long-term factors like inflation, bond yields, and market vibes (yep, vibes matter).

The Fed may have eased up on short-term borrowing costs, but their statements hinted at inflation sticking around and fewer rate cuts in 2025. Add in a strong job market with low unemployment, and investors are bracing for higher long-term inflation. That’s pushing up yields on bonds and mortgage-backed securities, which translates to higher mortgage rates for buyers.

Bottom line: Watch the economy, not just the Fed. Inflation reports, labor market data, and bond yields will drive the direction of mortgage rates. And while rates might ease slightly later this year, don’t hold your breath for anything under 6%.

For real estate pros, staying ahead means tracking these trends and helping buyers navigate the new normal.

🌟Quote of the Day:

"Success is nothing more than a few simple disciplines, practiced every day." — Jim Rohn

⚡ Quick Win:

Ask for a Referral (The Soft Way): Text your happiest clients and say, “Hey, I’m looking to take on a couple of new clients like you. Know anyone looking to buy or sell?” Gentle, effective, and non-pushy.

🎉 Fun Fact of the Day: 

Gold Rush to Green Rush: Homes near legal cannabis dispensaries have seen property values increase by up to 8%. Looks like green is the new gold for real estate investments.

📚 Book Recommendation:

"The Power of Now" by Eckhart Tolle —Llet’s talk about one of the most mind-bending yet surprisingly practical books you’ll ever read: The Power of Now. This isn’t your typical “grind harder, hustle more” advice. Nope. Eckhart Tolle is here to hit you with a truth bomb: the only thing that exists is... now.

Sounds woo-woo, right? But stick with me. Tolle breaks it down like this: Most of your stress, anxiety, and overthinking come from obsessing over stuff that already happened or worrying about things that might happen. The fix? Focus on what’s happening right now — and I mean this second.

This book is like a cheat code for cutting through mental clutter and leveling up your clarity. It’s deep but not preachy, with plenty of “Whoa, why didn’t I think of that?” moments. Whether you’re trying to close more deals, stay chill in high-pressure situations, or just stop your brain from running in circles, The Power of Now will get you there.

Pro tip: Don’t just read it — apply it. Start catching yourself when your brain drifts into the past or future, and pull it back to the present. Trust me, it’s a game-changer.

Greatness isn’t given; it’s earned one bold action at a time.

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