The transition from one month to the next means a great deal in our industry. We all have seen how closings always tend to migrate toward the end of the month as everyone wants to complete business at the close of the month and look to start the new month with solid momentum. However, in the mortgage industry, we get all kinds of challenges when the end of one month and the beginning of the next month fall in the middle of the week. The potential issues surrounding the closing, moving one or two days, can change a multitude of calculations and financial requirements, like pre-paid interest, etc., can put pressure on even the best of people! While many outside the industry are unaware of how these things could severely jeopardize the quality of the customer experience or even blow up the entire transaction! This is where your communication skills are tested!
The other challenges with the change of month in the middle of the week are financial and government agency reporting numbers! Numbers that can move the market dramatically in an instant! Reports about inflation, consumer prices, producer pricing, unemployment week after week, and the all-important JOBS REPORT on Friday morning! Any or all of these could send the bond market moving wildly in one direction or another, or not at all! You just must be aware and PREPARE yourself, your team, and your clients for this information to potentially impact their deal from many different angles!
The first big number already in was CPI, and it showed inflation DROPPING from 2.8% to 2.4%, which wasn’t expected. So, the bond market is liking this news, and hopefully it will like the numbers today and tomorrow as well! Either way, you have to prepare for the numbers and how they may or may not impact your business!
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