New: 🧠 Market Minds Issue #033

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Dustin’s Email Success Strategy

Switching to Constant Contact marked a significant shift in the Fox Homes Team's email marketing efforts. This tool enabled us them:

• Split-test subject lines: Sent two different subject lines to 10% of their audience, and the most successful one was then sent to the remaining 80%.

• Tailor content: This approach allowed us to create content that our audience actually wanted, moving away from generic newsletters that were not only ineffective but also potentially irritating to our clients.

The Success of Increased Email Frequency

Dustin decided to increase the frequency of their newsletters. The results were astonishing:

• Increased Engagement: Weekly emails kept them consistently in touch with their clients, helping to build stronger relationships.

• Higher Conversion Rates: This regular engagement led to a significant increase in listings — nine in just six months.

Implementing a Four-Week Email Plan

• Monthly Market Update: They positioned themselves as knowledgeable resources by embedding market update videos and blogs in their emails.

• Homes of Distinction: Highlighting the most impressive listings in our market captured their audience's interest and resulted in high open and click-through rates.

• Restaurant of the Week: They get a gift card to the restaurant of the week and to enter, readers must reply with their favorite restaurant. This segment proved to be very engaging, prompting replies from their readers, which is highly favored by email servers for improving sender reputation.

• Secret Homes Alert: Offering sneak peeks at new listings helped establish their emails as must-read content for anyone interested in the local real estate market.

Mortgage Rates Drop as Inflation Cools

Mortgage rates have taken a sharp downturn following the latest Consumer Price Index (CPI) report, which indicates a cooling in inflation rates. This shift has brought mortgage rates back to the levels observed last week, sparking a notable increase in both purchase and refinancing applications.

Key Highlights from the CPI Report

• Decrease in Annual Inflation: The CPI for May showed a year-over-year increase of 3.27%, a slight decrease from April's 3.36%. This marks the second consecutive month of declining annual inflation rates.

• Impact on Mortgage Rates: Following the CPI report, yields on 10-year Treasury notes, which significantly influence mortgage rates, fell by 15 basis points to 4.25%. Consequently, rates for 30-year fixed-rate mortgages dropped by 18 basis points.

Market Reactions and Future Expectations

Investors responded positively to the CPI data, with increased investments in Treasurys and mortgage-backed securities. This surge in investor confidence is largely due to expectations that the Federal Reserve might initiate rate cuts as early as September.

• Fed Rate Cut Expectations: Futures markets, as tracked by the CME FedWatch tool, now show a 71% likelihood of at least one Federal Reserve rate cut by September 18, a significant jump from 54% just a day earlier.

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TL;DR (Too Long; Didn’t Read)

Switching to Constant Contact revolutionized the Fox Homes Team's email marketing by enabling split-testing of subject lines and tailoring content to audience preferences, which improved engagement and conversion rates. Increasing the frequency of their newsletters resulted in stronger client relationships and a notable rise in listings. They implemented a four-week email plan featuring market updates, distinguished home highlights, engaging restaurant segments, and exclusive sneak peeks, significantly boosting open and click-through rates. Additionally, mortgage rates recently dropped following a decrease in annual inflation as reported by the CPI, leading to a surge in both purchase and refinancing applications and heightened investor confidence in potential Fed rate cuts.

Have a great weekend - we’ll see you next Saturday.

Cheers 🍻

-Market Minds Team