Since the COVID-19 pandemic, the real estate and mortgage markets have been on a roller coaster ride.
With mortgage rates hovering between 6 and 6.5 percent, it’s natural that home sales continue to slow down in most parts of the country.
As a loan officer or broker, it’s critical to adjust your approach based on current market conditions.
Rising rates mean taking a solid look at the benefits of buying aged mortgage leads. This is one of the best ways to keep your sales pipeline full.
Ready-to-Close Aged Mortgage Leads
What’s going on with credit in the ‘22-’23 market?
According to TransUnion’s 2023 Consumer Credit Forecast, demand for most lending products will remain high relative to pre-pandemic levels.
Additionally, a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology noted that the Mortgage Credit Availability Index (MCAI) increased by 1.4 percent to 103.4 in November 2022.
Credit availability increased by 1.4 percent to 103.4 in November 2022, marking the first rise in nine months. Generally, continual increases in the index are indicative of loosening credit.
Mortgage rates right now
While mortgage rates have the tendency to fluctuate, most years aren’t nearly as volatile as what we’ve experienced in 2022.
In January 2022, 30-year mortgage rates were between 3 and 3.5 percent.
Since then, rates have increased almost month over month, reaching the current average of roughly 6 percent (at the time of publication).
When compared to early 2022, current rates are high. However, they’re nowhere near the average of the 1980s, when rates were 10% or higher each year.
What’s going on with housing costs right now?
In November 2022, existing home sales declined for the 10th month in a row.
Every region in the United States recorded month-over-month and year-over-year declines. There are many reasons for this, ranging from rising interest rates to economic uncertainty.
A closer view of the residential real estate market for November 2022:
- New houses sold: 640,000
- New houses for sale: 461,000
- Median sales price: $471,200
Sales of new single-family homes in November 2022 reached 640,000. This is a 5.8 percent increase above October 2022. However, it’s 15.3 percent lower than the November 2021 estimate of 756,000.
What options do buyers have right now?
Home buyers have the same options as always, but with rising rates. It’s imperative to compare the pros and cons of each one.
For instance, it’s generally the best option if you can comfortably afford the payment associated with a 15-year mortgage. Most homebuyers can shave a percentage point or more off their rate compared to a 30-year loan.
Another option to consider is an adjustable-rate mortgage (ARM). With this, you have a fixed rate based on current market conditions, for a predetermined period. A 5/1 or 7/1 ARM is common.
Ready-to-Close Aged Mortgage Leads
Once the original period expires, the interest rate adjusts annually based on the index stated in the loan agreement, plus a margin set by the lender.
It doesn’t matter if you’re buying a home or refinancing a property that you already own, comparing several types of loans is the first step in finding what’s most affordable.
How can agents use aged mortgage leads in this market?
As mortgage rates rise and home sales decline, it’s natural to assume that your business will take a hit. But that doesn’t have to be the case.
Instead, it’s time to get creative about how you generate new business and keep your sales pipeline full.
Forget about what’s happened over the past 12 months. Mortgage rates may be on the rise, but they’re far from all-time highs. Furthermore, home sales appear to be edging higher.
The key to your success in today’s market is keeping a full pipeline of mortgage leads.
It’s best to take a multi-faceted lead generation approach, which includes buying leads and generating them through other methods, such as cold calling, social media, and paid online advertising.
Why now is the ideal time to take advantage of aged mortgage leads:
- Cost savings: When compared to live mortgage leads, savings can quickly add up. You can buy leads that are 86-500 days old for as little as $.20/lead.
- Instant access to interested buyers: Buy leads and instantly receive the corresponding contact information.
- To fill gaps in your schedule: Don’t let downtime go to waste. Fill it quickly with a batch of aged leads.
With all this in mind, buying mortgage leads may have moved to the top of your to-do list.
In this case, here’s what you should look for in a lead provider:
- Access to a large volume of high-quality leads.
- Many years of industry-specific experience.
- Online system for convenient ordering.
- A provider that sources leads through quote requests, lead brokers, online publishers, and quote requests from real-time lead aggregators.
Let Aged Lead Store help you fill your sales pipeline
Rising interest rates are impacting the mortgage and real estate markets, but don’t let that stop you from keeping your sales pipeline full.
If you have any questions, contact us online or via phone at (949) 647-5045.