Despite everything that 2020 has thrown at us, this year has been a solid year for MLOs and others in the mortgage industry. The mortgage trends that we have seen so far have demonstrated that the outlook for the housing market is healthy overall.
But what does the rest of the year hold for the mortgage industry? That is the million-dollar question on practically every MLO’s mind right now. How will we finish out the year?
To help answer these questions, we have compiled what we think are some of the most critical mortgage trends to watch for in the final quarter of 2020. If you want to keep growing your mortgage business, read our analysis and recommendations below.
Interest Rates Have Repeatedly Hit Record Lows, but Is That Coming to an End?
Over the past several months, headlines have touted ever-shrinking mortgage interest rates. The industry set new records for low-interest rates over and over again. According to Freddie Mac, rates fell below the 3% threshold for the first time ever, which may have something to do with a recent announcement from Freddie Mac and Fannie Mae: a 0.5% fee on all refinances.
What these interest rate and mortgage trends mean for the rest of the year remains to be seen. However, even if interest rates rise, they are still extremely attractive to consumers.
Home Sales Are Taking Place Online More Than Ever
It should come as no surprise that more people are buying homes online. With the COVID-19 pandemic still keeping everyone socially distanced, it is clear that the investment that many mortgage businesses have made in technology has paid off.
With Virtual Home Sales Up, Paperless Mortgages Have Increased
If you are going to buy a home online, why not fill out all your paperwork, too? That logic has driven up the number of mortgage applications that buyers are filling out on their computers. While this increase has created a backlog for many MLOs, in general, paperless mortgages are faster to close.
Are Millennials about to Enter the Market?
Millennials have had it rough. With the debt many of them accumulated from the rising cost of college, buying a home has taken a back seat.
A recent article from the Wall Street Journal may suggest that things are about to change, though. The reason that we might see a boom in home buying from this demographic could be the low-interest rates.
The Refinance Boom Could Be Slowing
When interest rates began to fall early this year, the mortgage industry was inundated with a refinancing boom. This boom could be slowing down, despite interest rate mortgage trends.
Will You Jump on These Mortgage Trends and Take Your Business to the Next Level?
To sum up, interest rates remain low, even with recent jumps. Consumers are buying homes and completing their mortgage paperwork online at higher rates. We could see an influx of millennial homebuyers soon, despite the beginning of the end to the refi boom.
These mortgage trends suggest that it is time to optimize your business’s processing power so that you can close on more loans. Wemlo can help with that.