When it comes to Mortgage Lead Lists, you have no further place to look than the experts on the Dataman Group Team.

DataDale’s Mortgage Trends  – Ending 2019

It’s been a good year for mortgage lenders due to an unexpected surge in refinance activity and the overall improvement in home sales.

The first half of 2019 surprised housing markets across the country. Mortgage rates fell. That’s the opposite of what the experts had predicted at the beginning of the year. It was welcome news for home buyers, sellers and homeowners. Millions of owners could benefit from refinancing at these unexpectedly lower rates.

In other ways, housing forecasters’ predictions for 2019 were correct. Buyers are still competing for a short supply of homes. Furthermore, the market isn’t quite as tilted in favor of sellers as it seemed six months ago. Home prices continue to rise, but not as fast as they have over the past few years. Many would-be buyers struggle with affordability.

NerdWallet has identified these mortgage trends to watch in the second half of 2019. I have tempered this with the latest info from the National Association of Realtors and Mortgage Bankers Association.

1. Wanted: More homes for sale

In real estate, it’s been a seller’s market since August 2012. More would-be buyers exist than homes for sale. Because of this, sellers have a stronger negotiating position. It’s true that the market still favors the seller in most places. However, the balance of power is beginning to move in the buyer’s direction.

According to the National Association of Realtors, sales of existing homes slid by 2.2% in September. Despite the slide in purchases, inventory levels barely increased. Right now we are at 4.1 months of supply at the current pace of sales. Six months of supply is considered to be normal. Certainly, we haven’t not seen that level for many years.

Even with thousands of homes on the market, there’s still a shortage of homes for sale. According to Freddie Mac, until construction ramps up, housing costs will likely continue to rise above income. This constricts household formation and prevents home ownership for millions of potential households.

2. Home prices will keep going up

Many forecasters predicted that home prices would continue to rise in 2019, but at a slower pace. They were right.

In the first four months of 2019, buyers paid more for resold homes than a year before.

The NAR predicts that home price appreciation will start to slow down.  They believe that year-end prices will be 2.2% higher than at the end of 2018.

Not everyone believes the pace of home prices will slow to end 2019. Fannie Mae has revised its price forecast. However, it still predicts that prices for existing homes will rise 4.3% this year.

3. Mortgage rates will remain low

Fannie Mae, Freddie Mac and the National Association of Realtors all predicted that mortgage rates would rise through 2019. In the first part of the year, mortgage rates tumbled.

The average APR peaked at 5.09% in November 2018. In contrast, the average APR for a 30-year fixed-rate mortgage fell to 4.09% by June 2019. This was a decline of a full percentage point, according to NerdWallet’s daily mortgage rates survey.

Of course, we all know that refi activity depends almost solely on rates. When they rise, activity falls. That was the case in the week ending October 18. The Mortgage Bankers Association of America reported an overall 11.9% decline in applications for mortgages. Again, that was because of the rise in interest rates.

4. Affordability continues to be a concern

Even as home price growth slows and mortgage rates fall, home buyers still have difficulty affording homes. This is especially true for first-timers in the less expensive end of the market.

The truth is that rising prices have offset much of the benefit of lower mortgage rates.

Mark Boud, chief economist for Metrostudy, calls the national housing market “top-heavy.” He means that there are plenty of homes available for buyers who can afford to pay $800,000 or more. But buyers outnumber sellers of homes priced $400,000 or less.

The share of newly built homes under $400,000 has also gone down.

5. More people could save by refinancing

While the drop in mortgage rates benefits home buyers, it’s also good for homeowners who can refinance. This means homeowners can get lower monthly payments by refinancing into a mortgage with a lower interest rate. Every time rates fall, there’s an increase in the number of homeowners who could save money by refinancing.

Black Knight is a technology provider for the mortgage industry. They estimate that 5.9 million homeowners could cut 0.75% or more from their mortgage interest rate by refinancing.

There are lots of great options to locate refinance prospects. You can select homeowners with high rates, VA/FHA Streamlines, HELOC conversions, homeowners with credit card high balances.

Even if you bought your home recently, it’s worth checking whether you should refinance. Black Knight estimates that 953,000 homeowners who got mortgages in 2018 could save an average of $162 each month by refinancing.

6. New homes get bigger

From a home buyer’s perspective, most markets need more houses for sale, and they need to be on the affordable end of the price scale. After all, many first-timers buy starter homes instead of forever homes. The median home size went up in the first quarter of 2019, making first homes less affordable.

Year-over-year median prices for new homes followed the increase in size, going up sharply in April to $342,200 — an 8.8% increase over the median price 12 months earlier of $314,400.

7. Attention is on first-time buyers

The mortgage and real estate industries are focused on serving first-time home buyers, and for good reason: There’s a lot of pent-up demand.

Tian Liu is the chief economist for Genworth Mortgage Insurance. He said that roughly 3 million first-timers delayed buying homes between 2007 and 2015.

Those buyers are “reaching that age when they can no longer delay,” Liu says. “Their housing needs are really catching up with them. It doesn’t feel right to be raising a family in a rental apartment. They want to own their place. So I think those drivers will be very significant for the next few years.”

The share of first-time home buyers averaged 45% over the past few years. There are millions of millennials reaching their 30s in the next few years. That means market forces could cause the first-timer share to increase again in the coming years.

Many thanks to Holden Lewis at Nerd Wallet for most of the information in this post.

 

Our Mortgage Lead Lists target Top Market Segments

Latinos – According to the National Association of Latino Real Estate Professionals, Latinos were the only demographic group that increased its rate of home ownership for three consecutive years. Latino Home ownership actually accounts for nearly 75% of the net increase in US Home Ownership. This is a key market group that must not be overlooked. Marketers can easily request Hispanic surnames on their mortgage prospect lists.

Millennials – the largest wave of New Home Buyers, representing 56% of last year’s home buyers.  Millennials are now reaching peak home buying age. This means that you need to reassess your marketing strategies to accommodate the preferences of Millennials.  The First Time Home Buyer list is still the top list for new originations. Read DataDale’s latest article about Marketing Mortgage Products to Millennials.

With a little creativity, Mortgage Marketers can continue to prosper in today’s economy.

Focus your marketing on what would trigger the need for a mortgage

 

Top List Picks for November, 2019

  • First Time Home Buyers – In the first half of 2019, first-time home buyers accounted for 56 percent of the loans used to purchase a single-family home. They also accounted for 39 percent of the sales. These Renters are taking advantage of affordable pricing on homes/condos and low rates on mortgages. Therefore, these are the top prospects for every mortgage company.  Some of the elements we use to qualify the data include age, income, marital status, length of residence, ethnicity, modeled credit and geography.  Consequently, the First Time Home Buyer overlay really enhances the basic renter data. One more thing to remember. Millennials are aging up. This group will become a massive first-time home buyer segment.
  • Renovation Loan Prospects – People are staying in their homes longer and taking out loans to renovate and remodel their homes. Therefore, many homeowners are making upgrades to their homes to age in place.
  • Equity Loan Prospects – Reach Homeowners with high equity in their homes who are carrying high revolving debt balances. Homeowners who are strapped for cash are good prospects for Equity Loans.
  • Invitation To Apply Lists – These mortgage lead lists are for those mortgage companies looking for an alternative or supplement to prescreen data. Select options include modeled credit score, household demographics, and property criteria. Click HERE to read about the different between ITA lists and prescreen lists.

We offer mortgage lead lists for:

 

Select from these high response mortgage lead lists and mortgage marketing list databases:

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**Read Data Dale’s Blogs for the Mortgage Industry

Marketing Mortgage Products to Millennials – May, 2019

Millennials are the Largest Wave of New Home Buyers – April, 2019

Understanding the Difference Between Prescreen Credit Lists & Invitation to Apply – August, 2018

April is New Homes Month & Millennials are Leading the Charge – April, 2018

Mortgage Marketing Outlook – 1st Quarter of 2018 – January 2018

Will the Gig Economy Change Mortgage Lending? – August, 2017

Can a Reverse Mortgage Help Retirees with their “Fundedness” – June, 2017

Mortgage Pros – Take notice – Millennials are Buying Homes – May, 2017

Is 2016 the Year for Reverse Mortgages? – published Jan 2016

DataDale’s Mortgage Outlook for 2nd Half of 2016 – published 8/3/ 2016

New Hybrid Marketing Methods for Mortgage Professionals – published 1/15/2015

2015 Marks the Return of First Time Home Buyers to the Marketplace – published 1/2/2015

What We Can Learn from the 2014 Fannie Mae National Housing Study – published 9/29/14

New Home Purchase Leads for Mortgage Brokers & Loan Officers – published 4/1/14

Mortgage Direct Mail – Can It Rebound? – published 8/14/14

Mortgage Mailers – Are You Barking Up The Wrong Tree? – published 9/26/13

How Mortgage Mailers are Generating New Leads with Direct Mail – published 1/16/2014

 

Click here to read the 2017 Housing Study by the US Census Bureau

Telephone numbers are available on most mortgage lead lists. If you want mortgage telemarketing leads in your market, remember that Federal, State and DMA Do Not Call Lists are flushed from our files. Federal SAN required for all telemarketing lists.