Exploring Economic Data | Chris Maloney on Potential Election Impact: Key Insights from Optimal Insights Podcast Episode 5
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As the election looms, the housing market braces for impact. What should mortgage professionals be focusing on this week?
In the latest episode of Optimal Insights, hosted by Jim Glennon , vice president of hedging and trading client services, we are joined by Optimal Blue experts Jeff McCarty and Alexander Hebner , plus special guest Christopher Maloney from Bank of Oklahoma. This episode is packed with valuable insights and trends that every professional in the mortgage and housing industry needs to know.
Here’s what you need to know this week.
Key Insights and Trends
Election Impact on Rates and Housing Supply
? Rates Reaction: The market is highly sensitive to the election outcome, with significant swings expected based on polling results.
? Housing Supply Concerns: Existing home sales are significantly below the long-term average, highlighting ongoing supply issues.
Alex Hebner points out, “We are only about 75% of the average, which shows the dragging effects of the affordability crisis."
Key Market Indicators to Watch
? GDP and Jobs Data: Key economic indicators like GDP and non-farm payrolls are crucial this week.
Jeff McCarty emphasizes, “We’re hoping for a GDP number less than 3% and a job number less than 125,000 to help bring down rates.”
? Fed’s Role: The Federal Reserve’s decisions post-election will be influenced by these economic indicators.
Policy Proposals from Candidates
? Housing Policies: Both candidates have proposed significant housing policies.
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Chris Maloney explains, “Harris promises to build 3 million homes, while Trump focuses on tax incentives and opening federal land for building.”
Practical Actions You Can Take Today
? Monitor Key Data: Keep a close eye on GDP and jobs reports this week. These numbers will influence the Fed’s decisions and, consequently, mortgage rates.
? Election Outcomes: Be prepared for market volatility around the election. Understanding the potential impacts of each candidate’s policies can help you advise clients more effectively.
? MBA Conference Insights: The Mortgage Bankers Association (MBA) conference is happening this week in Denver. Get with your representatives when they return to gather insights and updates.
? Educate Borrowers: Ensure your clients are aware of the current rate environment and the potential impacts of the election. Jeff McCarty advises, “Borrowers may still be lagging behind in their information. It’s crucial to keep them updated.”
The upcoming election, coupled with key economic data releases, will significantly impact the housing market. Staying informed and agile is essential for mortgage professionals this week.
For more information about these topics, listen to the full podcast episode on major platforms or watch the full episode on LinkedIn/YouTube.
Listen on all major podcast platforms: https://optimal-insights.captivate.fm/listen
The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Optimal Blue, LLC.
How are you navigating the current trends in the mortgage industry? Share your experiences and strategies in the comments, and don’t forget to subscribe to the Optimal Insights podcast.