Keeping Your Mortgage Business… in Business
Spring and summer are generally the busy season for house hunters. It makes sense – the weather is nice, the kids are getting out of school, and most homes seem to have maximum curb appeal with fresh, green lawns and rows of color-coordinated blooms lining the front walkways.
On the other hand, autumn tends to mark the beginning of the slow season. It isn’t just leaves that fall during the autumn – the number of home sales do, too. Plus, the kids are back in school and the prospect of a cross-country move seems less inviting when the skies are gray and the roads, potentially icy.
So how will the fall housing slowdown affect your mortgage business this year?
Mortgage Rates Won’t Fall
Mortgage rates have been hovering at historic lows for the longest period in memory. They’ve been volatile as of late, but expect a general upward trend. The Federal Reserve has been teasing a federal funds rate hike for what seems like ages.
For buyers who are savvy to impending rate changes, the prospect of paying a considerable sum more for the same home over the course of a 30-year FRM may spur some to pay you a visit.
Demand Will Continue to Keep Supply in Check
As you know, available inventory went quickly this year – desirable homes didn’t stay on the market for long, and if you were doing business in a particularly brisk market, you probably saw bidding wars become a regular feature of the local housing landscape.
It seems unlikely that the fall slowdown will result in a glut of available housing stock. According to the U.S. Census Bureau and HUD, current supply of newly built homes is shorter than it was at this time last year. And the National Association of Realtors recently noted that existing homes are thin on the ground as well.
Investors Headed for the Sidelines
Over the past few years, investors have been quite active in the housing market, swooping in on desirable homes with cash in hand. But as home prices continue to rise and distressed housing stock becomes rare, we’ve seen them start to bow out and start to invest their funds elsewhere.
That could mean more available housing stock for traditional homebuyers, and most of them will be looking for affordable mortgages.
Keep Your Mortgage Business Busy All Winter Long
The fall housing slowdown is a natural part of the mortgage business, but if you play your cards right, you may be able to stay relatively busy, even as your competitors and colleagues are sitting on their hands.
It may be smart to step up the marketing just in time for fall. Remember, marketing takes time to work, so it should start pulling more clients into your office just as the slow season starts.
You might even consider offering fall and winter specials to drum up interest in your mortgage products during the gloomy days of winter. What better way to brighten someone’s day than by giving them a great deal on a mortgage?
Don’t Let Your Mortgage Business Fall for It
Sure, the housing market slows down during the fall, but this year’s market conditions could keep business relatively brisk. And if you step up your lead generation game, you could keep closing deals throughout the slow months. Good luck, and if you need more high quality mortgage leads, don’t hesitate to get in touch with RGR. Our leads don’t stop for fall.
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