Mortgage Interest Rates: Existing vs New

It feels like the talk of interest rates and how high they are is everywhere. I don’t think I go a day without reading or hearing someone mention how high rates are. I do it myself as well. As a homeowner, I talk and think about the rate I got versus the rate I would get today. I found this chart put together by Axios with info from NYT and Federal Housing Finance Agency puts into perspective why it is such a prominent topic. Dating back to 1998, the gap has never been as wide as it is now.  

When I shared this chart with someone who has bought homes since the 80s, I learned more about this delta further back in time. He told me about an assumable mortgage he used to finance a house in 1981. The market mortgage rate he said was 18% and he picked up the seller’s existing mortgage at 9% which is a wider delta than we have today. This gives me hope that America can get through this. We’ve done it before.

existing and new mortgage rates since '98

The Least Sexiest Thing

I find it human nature to chase the shiny new thing. Or make something overly complex and over-engineer it. I was reminded last week that sometimes the least sexiest thing is most useful. In my case, it was a flat priority list of projects for Q2. From highest to lowest priority, I was meeting with the Engineering Manager and Product Manager on my team to discuss the prior and upcoming sprint. It wasn’t a fancy strategy image or something complicated in Jira. 

Our discussion was effective because we were able to see and discuss accomplishments & learning, where we’re going next, and what is delayed, which is exactly what you need to find ways to discuss throughout a quarter. 

It was a simple flat priority list of ~15 projects in buckets from P1, P2, and P3. Sometimes the least sexiest thing is most useful.

Weekly Listen #3

A listen I found valuable this week is a podcast from Cal Newport. He goes through the history of productivity over the last 20 years with important themes and popular books.

One book he talks about is Steven Covey’s 7 Habits of Highly Effective People. I remember I had a hockey coach teach me about this book in the early 2000s. I took notes on each as he walked through them. I was an early teenager at the time and thinking back I remember enjoying the classroom part of the hockey camp where I learned about this. It was good to get the mind going as well as the body physically moving.

Also posting the Spotify link here.

Comprehending Pitches

As my career progresses, I seem to get more outside pitches. This is obviously common for most people. As one becomes either more of a decision maker or someone who influences a decision, people responsible for sales will target you with emails and try to get you on the phone. 

As a senior in-house SEO professional, I’ve learned the importance of taking information from outside company walls to develop an outside-in perspective to SEO strategy. When it comes to a software or tool vendor, it can be tricky to digest if you need exactly what they’re selling because their pitch is often a solution to a problem they’re assuming you have. You might not have that problem. 

A few weeks ago, I took a call to understand more about a product. The rep jumped right to the problem and solution their company thinks is the one that resonates with people in my role. In reality, I don’t have that problem and don’t need that solution. So I moved on and decided for now, I don’t need this company to help reach my goals. 

I get why software companies lean this way. As it scales, a company needs to standardize and have streamlined pitches and processes so maybe it isn’t so much that reps should move away from having the problem / solution ready but that reps need to know when their problem or solution needs to be refined since it isn’t resonating. Or put together more evidence to support why that person has your problem.

Whatever side you might be on, I believe it is important to stay on your toes. If you lead in-house, know what problems you need help with. If you sell, listen and be open to hearing new problems. Not just the one your company is convinced is the most important one to solve. 

Part 3: A Great Strategy

This is the last part of a 3 part series around signs of a high performing team. I talked in the first two parts about how meetings can go. First how one meeting has seamless transitions and the second about sequential conversations across meetings. Part 3 was born when I realized I wanted to provide a reason for why teams might be in a funk of unproductive conversations. 

If these things aren’t happening, there might be a strategy problem. Richard Rumelt’s book, The Crux: How Leaders Become Strategists is a great resource on strategy. I love the opening paragraph (it is really all you need to know!): 

A strategy is a mixture of policy and action designed to surmount a high-stakes challenge. It is not a goal or a wished-for end state. It is a form of problem solving, and you cannot solve a problem you do not understand or comprehend. Thus, challenge-based strategy begins with a broad description of the challenge – the problems and opportunities – facing the organization. They may be competitive, legal, due to changing social norms, or issues with the organization itself. 

As understanding deepens, the strategist seeks the crux – the one challenge that both is critical and appears to be solvable. This narrowing down is the source of much of the strategist’s power, as focus remains the cornerstone of strategy. 

One of the key parts to a great strategy that I want to highlight is narrowing down and focusing. To do this, it is not just saying what you will do but being really clear what you are not doing and why because there is a high chance someone in your company wants to do that other thing for certain reasons. 

If there is no focus and you’re doing too many things, it is going to be hard for teams to have productive and sequential conversations amongst each other. 

To be a good strategist, be very explicit about what you aren’t doing and why.