Mortgage rates in 2020 are starting off around 80 points lower than this point last year.
Sam Khater, Chief Economist for Freddie Mac, stated, “The stability is welcome news after the interest rate turbulence of last year which caused a slowdown in the housing market and other interest rate sensitive sectors.”
What does this mean for MLOs? It means gear up. If you’ve got a strong list of realtor referrals, Quarter 1 of 2020 might be a busy season for you.
Projections tell us that the interest rates will remain smooth during the course of the year and aren’t expected to break the 4% threshold at all, compared to the 4.63% rate hit in 2019.
While projections show a smooth ride, the current low interest rates will be enticing for potential homebuyers. Waiting will be a risk and some may be afraid of this risk, causing them to act quickly.
If the latter is the case, how prepared are you, as the MLO, to keep up with the workload?
How can an MLO prepare?
As a loan originator, you’re the entryway to a buyer getting a mortgage. There’s a lot of pressure there and there’s also a lot of pressure to keep everyone around you happy. An on-time closing depends on the work you do and if you become overloaded with work, your network suffers.
Knowing the mortgage rates in 2020 are expected to remain below 4 percent is a warning sign that your workload may increase. While originating more loans doesn’t seem so bad—who would complain about an increase in business?—the processes that come along with this increase may become a roadblock.
Think about all the back-end work you do. This absorbs more of your workday than you’d like it to, thus cutting into the number of loans you can originate. With an automated piece of software like Wemlo, those back-end tasks are taken care of, leaving you with plenty of time to get back to focusing on closing dates and ensuring your network is satisfied.
To prepare for this projected spike, find ways to open up your schedule by knocking out some of those tedious tasks that are slowing you down.
Invest in staff or technology?
Which one would you choose?
When you get busy and your business begins to pick up, the first thing you might think to do is to start seeking help. It’s natural, and what’s more natural is looking for living, breathing help. It’s what the Industrial Age has taught us and what has worked for many years.
But in the Information Age, technology can offer the same—if not better— assistance. When the mortgage rates in 2020 lead to more business, you might just find yourself in this dilemma. And it’s a good one to have. And if you do, you may find yourself weighing the options. A free demo from Wemlo will help to point you in the direction that fits best for you and your business.