The Fed's Plan to Cut Interest Rates Three Times Will Transform the Mortgage Market - 8/11/25 Monday Market Update

The Fed has announced plans to cut interest rates at least three times over the next three Fed meetings, which is great news for the mortgage market even though rates aren't directly tied to Fed rates. As we approach mid-August, it's crucial to review your goals, understand your business metrics, and begin planning for 2026 since real estate operates on a 10-month business cycle.

Listen now and be sure to tune in next Monday for a deep dive!

Reach out if you need any goal-setting or business planning materials. Until next week, go sell something!

Chapters

• 1:12 Monday Market Update
• 2:28 Fed Rate Cut News
• 3:17 Mid-August Goal Check-In
• 4:57 Know Your Numbers
• 6:16 Planning for 2026
• 8:26 Client Outreach and Events

Transcript

Speaker 1: 0:37

it's Monday, August 11th, and this is your Monday market update. With Nikki still out and about, I'll go ahead and share my screen and we'll get this going.

Speaker 2: 0:52

Good morning everyone, happy Monday. I am on week three of my road trip up and down the west coast of the US and enjoying everything thatI can about the national parks and hiking and doing a lot of fun stuff. So I thought I would send another market update via video. However, next week I will be live and in person as we finish up our road trip this week.

Speaker 2: 1:13

The big news this week is coming out of the Fed, so they are finally seeing the need to start cutting those interest rates. So there's been a lot of pressure, like I had talked about, about cutting interest rates by the end of the year. Now they're putting more pressure and more pressure on the Fed and the Fed is saying, okay, we not only need to cut the interest rates once this year, but not twice, but at least three times over the next three Fed meetings. So that could be great news for the mortgage market. As a reminder, the Fed rate does not determine the mortgage interest rate. However, it does affect the 10-year treasury bond, which is tied to mortgage interest rates. So as we see the Fed interest rate go down, we generally see mortgage interest rates go down as well. Other than that, everything is pretty status quo, from an application standpoint and from an interest rate standpoint. We are sitting in the mid-sixes and everything is looking great. We'll see you guys next week.

Speaker 1: 2:05

All right. Well, that is some great news. I know everyone's been waiting agents and buyers and sellers. So good news coming. And I definitely encourage you to tune in next week because I know Nikki will do be doing more of a deep dive into what's coming potentially timeline on the first, second and potential third interest rate cut. So that's fantastic.

Speaker 1: 2:33

And what I was preparing for today and wanted to talk about is, even though we're still in summer, you know it's almost mid-August. Hear that again, it's almost mid-August. So, first and foremost, where are you at on your goals? I always love to do a mid-month check-in, which is coming up on the 15th, so put it on your calendar and give yourself 10 minutes, 20 minutes, a half hour just to review the first part of the year and the first part of August in particular. And with that said, I know a lot of people travel or do different things to wrap up the summer before school starts or just jumping into fall, and I encourage you to look at your business and work on it, whether you're traveling. You can also do some business planning and if you need business planning materials, reach out to me. I'm happy to get you a few different versions of a goal-setting workshop that I do every fall, late fall, early winter, just to get you prepared for next year.

Speaker 1: 3:41

But look at and know your numbers. I saw another agent who's a high producer in our area here in the Minneapolis Minnesota area, and he talked about knowing your numbers and I couldn't agree more and I, when I was at the height of my production, I mean I knew how many people I was dialing, how many people answered that I dialed and of the ones that answered, how many appointments I set. And of the appointments I set, how many I held. And of the appointments I held, how many I signed. And of the people I signed, how many I sold and got to the finish line. The more you know, the better you can plan.

Speaker 1: 4:22

I know a lot of agents aren't that particular or go that deep, but even just looking back at the beginning and the first part of the year, where are you at on goal? Where does your business come from? If you're not to goal, or where you want to be to meet or exceed your goals, what are you doing in order to double down and get there? There's so many different ways that you can do this business and you can find people to help and the bottom line is it's a relationship, business and conversations equal currency. So where are you having conversations with who I know I've talked about before and it's a chapter in my ebook fall in love with sales. Do not be a secret salesperson. Do not sit back and wait for your phone to ring. You'll want to get out there and have authentic conversations. It doesn't have to be icky, salesy heavy and you do want to go out and help people, because if there is someone out there that needs an agent, why shouldn't it be you?

Speaker 1: 5:24

So, as you're traveling and wrapping up your summer or just looking at the fall and starting to plan for 2026, look at your business where it's come from, know your numbers and start your goal setting now. Start looking ahead and foreshadowing and forecasting to 2026. Because an agent, a real estate agent's business, is really a 12 or, excuse me, a 10 month business, not a 12 month. By the end of October, which is right around the corner, if you think about it, that's not too far away. About two and a half months away, your 2025 will pretty much be wrapping up, unless you have a active buyer you're working with and you can put under contract and close yet this year, or you get a cash buyer, which has happened more than once, and you want to look at what's actually in the pipeline. So starting to think about 2026 is not all that far off if you think about it, because, especially by the end of October into November, your 2025 numbers are wrapped up and that's it. So then you're going to start planning and things are going to start closing in 2026.

Speaker 1: 6:45

So what does that look like for you? Think about that and, of course, if you need any materials, if you need any help, think about your three pillars. I know I have the GPS, where you have two to three different ways and places that you get your business from, or at least your focus is going to come from. Is that social media? Is it open houses? Is it networking, running a B&I group, volunteering? I mean, there's so many different ways that people do this. Some people just have events.

Speaker 1: 7:17

So if you're having, as I mentioned last week, a fall or winter event, either a holiday party or a pumpkin patch or Thanksgiving or some type of client appreciation party, have you started booking on that? Is that one of your pillars? Because that, from here on out, you can be doing all of your marketing and your reach outs, to check in with all of your past clients, all of your sphere of influence, five to 10 people a day, and you could be wrapped up by the end of September. If you think about that, if you have 250 to 500 people in your database, you could be calling, texting, emailing, facebooking, messaging, whatever it is, but you'll want to be reaching out to those people. It's a great reason because you're coming with something of value. You want to invite them to an event. You want to appreciate them and show them how much they mean to you and invite them to these events. That can start today and that can be your whole marketing for the next couple months. You have the event and then you have another month of wrap up, thanking people for coming.

Speaker 1: 8:29

If you miss them I missed you at the event let's connect soon. I would love to you know, hear about how you're doing. I mean, this can go on and on and on. We complicate it, we make it way too hard. It's not that hard. It's just going and having conversations, building relationships, coming from contribution, being heart-centered and in it for the right reason, finding out how you can serve and help others, and the more you do that, the more your business will flourish, I promise you so. Look, nikki and I are up if you need anything at all. Sorry, I don't know why I can't talk today. I'll do better next week, but until then, go sell something and, of course, let us know how we can be helping Make it a good one.