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 – March 3, 2025
I’m not sure if I want to be doom and gloom – or very excited about mortgage marketing for 2025! Like many LOs out there, I am holding my breath and hoping rates drop soon. Right now there is the high inventory of homes for sale, just sitting there waiting to be snapped up. Do buyers have the stomach to buy a home at today’s high interest rates and know, based on history, that lower rates will be down the road so they can refinance?
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).
- Have good credit (a score of 720 or better).
