1. Freddie Mac, October 29: the 30-year mortgage at 7.24%
The average 30-year fixed rate was 7.24% this week, down from 7.32% a week earlier. The 15-year fixed rate was 6.60%, down from 6.68%. Freddie Mac calls it the lowest level this month. A year ago they were 6.17% and 5.41%, so rates are still well above last year.
Why a small contractor should care: homeowners who pay for a big job with a loan watch these numbers. A small drop does not change much on its own, but a client who said "let's wait until rates come down" now has a reason to talk again.
What to do this week: call the clients who put a project off because of money in the last three months. Ask one question: "Is the project still on your list?"
2. Federal Reserve, October 28: rate held at 3.75% to 4%, two votes for a hike
The Fed kept its target range at 3.75% to 4% in a 10 to 2 vote. Lisa Cook and Beth Hammack wanted another quarter-point increase. The statement says growth is "expanding at a strong pace" and "inflation remains elevated." NAHB expects a hike in December and notes that the 10-year Treasury yield, which mortgage rates follow more closely, was about 5%, down from more than 5.3% earlier this month.
Why it matters: business credit lines and credit cards usually move with the Fed's rate, not with mortgage rates. So a cheaper mortgage for your client and a dearer line of credit for you can happen in the same winter.
What to do this week: if you plan to borrow for a truck, equipment or payroll, ask your bank what your rate does if the Fed raises in December. Check with your accountant before you choose.
3. Third quarter: remodeling up 2.7%, single-family building down 5.0%
The economy grew at a 3.4% annual rate in the third quarter, up from 2.2% in the second, the Bureau of Economic Analysis said on October 29. In NAHB's breakdown of the same release, residential investment fell 3.3%: single-family building dropped 5.0% and multifamily rose 0.3%, while improvements, the remodeling part, rose 2.7% (all annual rates). This is the first estimate and will be revised.
Why it matters: in housing, work on existing homes is the part that is still growing. If you split your time between builders and homeowners, the homeowner side is where demand held up.
What to do this week: look at your open remodeling estimates and follow up on every one that is older than a week.
Where WorkTime CRM helps with this
When you move a client to Rejected on the Pipeline and pick "Postponed" or "Financing fell through", the CRM puts a reminder on your calendar 90 days later, so those calls come to you. If you add a financing link in Settings → Company → Payments → Financing for Clients, every estimate from $1,000 shows the client a "See financing options" button.
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