People Want Houses…Not Low Rate Mortgages

With the decline in loan activity, you might be surprised at how many people are still selling their homes and buying new ones. After the last couple of record-breaking years in the mortgage industry, and now the increase in rates, you might be wondering why many homeowners are selling low and buying high.

There is a myriad of examples that might account for this behavior. A few that we have noticed include:

Retired parents are finding a second home close to their children and grandchildren.
A software engineer moving to a more suburban area after transitioning to a fully remote position.
An employee with a salary increase after switching occupations.
Empty nesters who are selling to downsize and take advantage of the appreciation they’ve experienced.

….and the list only continues!

As a mortgage professional, it’s easy to get discouraged after seeing rising rates every day and not securing as many loans. It’s imperative to remember this simple (and often overlooked fact):

People want houses, not low-rate mortgages.

As an originator, understanding the circumstances in the current market is the first step to finding and helping people.

As executives managing loan origination teams, it’s crucial to find opportunities to aid your originators.

Easier said than done, right? Not quite! If the managers can help their originators capture an extra deal or two each month, their employees will feel valued and gravitate towards that management style…rather than seeking alternative management.

It’s impossible to predict when shifts in the market are going to occur, but many large lenders knew the market would stray away from refinances. They have prepared and demonstrated that they can build efficient systems to keep their originators busy.

Are you prepared, or are you scrambling and cutting costs to survive in this industry?

If you’re not quite prepared, you don’t need to stress too much…there are options at your fingertips that will help you become a source of business to your partners and strengthen your professional and personal relationships.

One of the most cost-effective and accessible ways to find both home buyers and sellers is to monitor existing databases. Your own clients, leads, contacts, and even referral partners are your next opportunity…and will yield more results than other expensive marketing tactics.