Sometimes you need to take a different approach in Mortgage Marketing
The rise in interest rates after the November 2016 Presidential Election has had a YUUGE impact on the mortgage industry, affecting both purchase originations and refinance originations. According to Black Knight Financial Services, first lien mortgages originated during the first quarter of 2017 were at the lowest rate since the fourth quarter of 2014.
That doesn’t mean this isn’t the time to market. What it does mean is it’s time to take a different approach in your marketing message. Now is the time to educate!
Let’s take a look at purchase originations…
Purchase originations in the under 700 credit score bucket showed the sharpest decline and was the only segment with a year-over-year decline, down 9.0 percent. Instead of sending a mailer with information only on FHA Loans or 30 Year Fixed Mortgages, consider educating these potential buyers on the investment of buying a house or financial steps that should be taken before buying a home.
Remember Direct Mail is the most trustworthy tool in your marketing mix and trust is one of the biggest factors in picking a mortgage lender. You can build trust by providing sound advice at no cost and educating potential buyers.
This doesn’t mean you shouldn’t try to sell yourself, but consider taking a different approach with your message. When rates decline (and they will) then you should change your message once again.
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