March 10, 2015 | By RGR Marketing Blog

When Will Mortgage Rates Start to Rise Again?

Mortgage rates have been at very attractive levels for the past few years, but rate hikes could soon be on the horizon. According to a recent Freddie Mac mortgage rate survey, the 30-year fixed rate mortgage hit its highest point of 2015, at 3.76%. The 15-year FRM also edged up, gaining .06% to summit at 3.05%.

While a recent Federal Open Market Committee meeting saw zero votes to raise mortgage rates in the month of February, a couple of the meeting’s key decision-makers hinted that higher rates could be coming as early as June of this year.

Of course, mortgage rates are typically tempered by factors such as retail inflation figures, and inflation is expected to slump this year by as much as a percentage point, due in no small part to falling oil prices.

Still, unexpectedly rosy economic news could also cause mortgage rates to rise once again, as investors demand higher returns from mortgage-backed securities when inflation is on the rise.

Assuming interest rates are poised to climb this year, now would be the right time to close as many deals as possible. So is your mortgage business closing enough sales, and if not, how can you make that happen?

Urgency Is an Excellent Motivator

There are plenty of prospective homebuyers out there who are interested in buying a new home but for one reason or another, they put off actually taking action.

Some are hesitant to finally take the plunge into homeownership. Others are monitoring market trends, trying to pick the best time to buy. Regardless of the factors behind these prospects' hesitation, your sales team can use potential interest rate hikes to motivate reluctant homebuyers to commit.

If you’re in the mortgage business, low interest rates are a key selling point for many of your clients. There’s nothing like the specter of higher mortgage payments for thirty years to make the average homebuyer want to lock in his or her interest rates by signing on the dotted line.

Need More Deals? Get More Prospects

Urgency is an excellent motivator, but you can’t close deals if you don’t have viable prospects. If your sales pipeline is looking to be a little emptier than you’d like, it may time to figure out how to acquire more mortgage prospects, and that means ramping up your marketing efforts -- an easy way to start the process is to purchase high quality mortgage leads from RGR Marketing today.

Smart mortgage originators know that you don’t blindly throw money at marketing; you have to invest in the right type of marketing efforts for your business and for the specific goals or outcomes that you are looking to achieve. Many have found partnering with a reputable lead provider to be an excellent investment.

Instead of trying to market your own business or paying a marketing firm to take the reins, you can simply take advantage of an already-established lead generation company’s extensive marketing reach, and use their strengths to complement your portfolio of lead generation methods.

[Photo Credit: LalaList]

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