When it comes to Mortgage Lead Lists, you have no further place to look than the experts on the Dataman Group Team. They will provide you with a high converting mortgage marketing lists. And, right now is the time to invest!
Data Dale’s Mortgage Trends – December 10, 2024
Wow – this will probably be my last update to this page in 2024. I am very excited about mortgage marketing for 2025!
OK – so right now Homeowners face a choice – buy or wait, refinance or wait, cash-out or wait. Did you know that the end of the third quarter total homeowners equity for borrowers with a mortgage reached $17.5 Trillion. There’s a lot of equity out there!
As we approach the end of the year, industry experts predict a likely drop in interest rates. This change could open up a vast opportunity for mortgage professionals, as homeowners look to refinance, buy, or tap into their home equity.
In terms of refinance and cash outs – the truth is that American Homeowners are sitting on a gold mine. Experts say there is 17.5 trillion in home value. That’s why lenders, scrambling to offset a significant drop in purchase and refinance originations last year, have turned their sights to cash outs, home equity loans, renovation loans and reverse mortgages.
With rates just above 6%, some 4.2 million borrowers could lower their rates by at least .075% in refinancing, which is the best deal since early 2022. Figure that someone with good credit and significant home equity could save around $299/month. (9/20/24 WSJ)
It’s true that high mortgage rates have put a lot of pressure on the housing market in recent months. This was after home prices hit record highs across the nation. But, mortgage rates have dropped a bit lately from their high. Many economists are mixed about whether home prices will continue to decelerate through 2024.
Right now, housing experts are maintaining a watchful eye on the economy, which is still being pulled in all directions by high inflation, steep interest rates, ongoing geopolitical uncertainties and recession fears, to name a few.
After a couple of red-hot years for the housing market, there are indicators a correction is underway—but it’s been slow-going. Mortgage rates are still hovering around double what they were 18 months ago. And nationwide home prices are still increasing on a monthly basis despite a decline in total sales. This continues to make it harder for many homebuyers to access affordable housing.
Refinancing is down. Many people have already take advantage of 2021 and 2022 low rates to refinance. However, Home Equity is at a high. This gives mortgage lenders an opportunity to sell cash outs and reverse mortgages
This is a golden opportunity for lenders and brokers to connect with potential clients who may have been waiting to make their move.
Trends:
Mortgage rates are dropping
There are fewer homes available to buy. Fewer first mortgages to originate.
Customers who can’t find a home to buy are shifting to fund renovations
Other customers are moving to more rural areas they can afford
Some people are refinancing without property inspections.
Cash-out refinancing is setting new records.
Narrower margins for Originators
There are more people in the mortgage industry than before, causing a lot of competition.
Additional emphasis on prospecting for new business
Keep your eye on debt consolidation / people who are underwater
Rate resets
Using Mortgage Marketing Lists to Earn a Share of the Business
Lenders are now actively competing for retail business. In 2021 and 2022, many homeowners were self-motivated to refinance. As the rates increased, there were fewer homeowners voluntarily contacting mortgage brokers looking to refinance.
Mortgage brokers who want a profitable 2024 will have to market. Direct mail is still a winning medium in the mortgage and finance industries. Of all marketing channels, direct mail coveys the most trust and authority – and it’s private. As the rates increase, homeowners are not going to waltz in your door. You need to get out there and reach out to them.
Selecting the Right Prospects
According to Black Knight, mortgage refi demand has dropped 4%. There are still millions of Homeowners who are eligible to refinance. This is how to select the best prospects for your lead list.
Homeowners whose new loan can potentially lower their 30-year mortgage by at least three-quarters of one percentage point. (for example, from 3.75% down to 3% or lower).
Have at least 20% equity in their home. (This means they have paid off at least 20% of the value).
According to Black Knight, homeowners who fit the above criteria could end up saving about $300 a month by refinancing to a lower rate.
Consequently, mortgage companies need to reach out to these Homeowners. They are the prime refinance candidates. Remember, if they don’t hear from you first, they are likely to click on the top mortgage company they see online in Google search.
Other trends
Cash-out Refinances
Mortgage brokers need to take advantage of cash out refinances. This will continue be an important market segment for lenders.
Cash-out refinances are surging in popularity. Remember, there is a record $19 trillion in accessible equity available to homeowners. This has been fueled by rising home prices combined with lower mortgage rates and the need for ready cash. A cash-out refinancing enables homeowners to trade the equity in their homes for a lump sum of cash. In this case, homeowners pay off their old mortgage with a new one, and keep the extra cash that’s left over. In 2023, that averaged about $50,000 per transaction. There are great mortgage marketing lists you can use.
Low Down Payments
The low down payment mortgage has become the standard entry to home ownership in the U.S.
More than 1.3 million homeowners put less than 20 percent down on their mortgage in last year. This is according to a report by the U.S. Mortgage Insurers (USMI) association. The number of low down payment mortgages backed by private mortgage insurance (PMI) increased by 22.9 percent in the same period. PMI is generally required on mortgages with less than 20 percent down.
In fact, 58 percent of agency mortgages had some type of mortgage insurance, according to the Urban Institute. The majority of those home loans were insured by PMI (41 percent). The next highest groups were FHA (36 percent) and VA (23 percent). Mortgages with PMI have been on the rise since 2016. That’s when homeowners put less down.
Assumable Mortgages
More than 11 million homeowners in America have assumable loans (FHA, VA, USDA), according to the U.S. News & World Report.
For example, over the past 10 years, nationally, 17.1% of mortgages were FHA loans and 7.7% were VA loans, adding up to roughly 25% of mortgages that are, in theory, assumable, according to Realtor.com® data.
During this very high interest rate period, real estate agents have been looking for lists of homeowners with assumable loans to pitch to their clients,
Is the Boom in Real Estate Sales Over?
Inventory is low. Yes, there is still new construction available and homes are still for sale in many areas. But home prices and mortgage interest rates have gone up astronomically. Many prospective home buyers can’t find a home to buy….and trade-up buyers are hesitant to drop their 3% mortgages for interest rates upwards of 6%. What we are seeing is that many people who have been waiting for inventory are staying in place. They are shifting to cash-outs and renovation loans.
How’s Your Visibility?
Homeowners eager to refinance and save are grabbing at record-low mortgage rates. But, are they applying with you?
You need to get your messages out now. In other words, you have no time to delay getting your letters ready to mail. In addition, you want to plan a companion digital display to make your message more visible / more important. And, don’t discount telemarketing. If you have a good script, it still generates leads!
Above all, you want to be first in the door with your programs.
Top Mortgage Marketing List Picks for December 2024
Cash-outRefinance Prospects – Reach homeowners who are looking to pay off their old mortgage and keep some extra cash at the same time. Very popular with consumers looking for some ready cash.
ReverseMortgage Prospects – We are seeing a big increase in reverse mortgage loan origination activities. There are more than 12,000 Americans reaching age 62 each day. Many senior homeowners are looking for a way to fund their retirements. Mortgage brokers can target qualifying seniors who are looking to leverage the value in their homes so they can age in place. One hint – keep education at the forefront of your creative. Reverse mortgages are misunderstood.
First Time Home Buyers – We overlay many elements on our Renters data to qualify this group. We use 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. Millennials are also aging up. The key is marketing credit down payment assistance and credit opportunities.
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.
Invitation To Apply Lists – These mortgage lead lists are for those mortgage companies looking for an alternative or supplement to prescreen data. Select by modeled credit score, household demographics, and property criteria. Click HERE to read about the different between ITA lists and prescreen lists.
Refinance Prospects – According to Black Knight, there are still 9 million mortgage holders who are good refinance candidates. They estimate these homeowners could save $3.1 billion a month by refinancing their home loans. They may still want to refinance.
Target Unique Market Segments with our Mortgage Lead Lists
Latinos – Latinos were the only demographic group that increased its rate of home ownership for three consecutive years. This is according to the National Association of Latino Real Estate Professionals. For example, Latino Home ownership actually accounts for nearly 75% of the net increase in US Home Ownership. For that reason, the Hispanic segment 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 33% 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. Want to learn more? Read DataDale’s recent article about Marketing Mortgage Products to Millennials.
In conclusion, with a little creativity, Mortgage Marketers can prosper in today’s economy.
Focus your marketing on what would trigger the need for a mortgage
Telephone numbers are available on most mortgage lead lists. We offer both landline and cellphone data. At Dataman Group, we believe in responsible telemarketing. Therefore, if you want mortgage telemarketing leads in your market, our data is flushed against Federal and State Do Not Call Lists.
Email addresses can be appended to your marketing lists. Estimate we will locate email addresses about 30% of the list.
