Mortgage brokers discuss strategies for business building as rates continue falling
Is housing affordability finally coming back within reach for US buyers? High mortgage rates and ever-climbing prices have pummeled would-be homeowners’ budgets, making the prospect of purchasing a property a distant one for many – but the outlook is improving, according to First American.
The company’s Real House Price Index (RHPI) for August showed that affordability improved across the country by 4.4% by the end of that month, fueled by lower mortgage rates and a jump in average household income.
Consumer buying power was 9.3% stronger than the same time the previous year, the report showed, thanks in part to a drop in real house prices both year over year and between July and August.
Better purchasing and refinance prospects for borrowers are also catching the eye of brokers and loan officers who’ve been making the most of the recent sluggish market by preparing for an impending upswing in activity.
That’s not to say they left the phone on the hook even during a period of quieter activity. For Bryan Acosta (pictured, top left), president of Revival Capital, a top priority during 2024 has been keeping in contact with clients so that a phone call when rates fall doesn’t seem like a bolt from the blue.
Keeping borrowers constantly apprised of their options is a good way to retain business and strengthen relationships, he said. “Stay in front of people so that [they] don’t feel like now the rates are dropping, all of a sudden you’re popping up out of nowhere,” he said to Mortgage Professional America on his current outlook.
“We’re making sure that we’re helping them. We found that there were some people from the time that they closed, to where we are in rates now, there’s huge savings [potential]. So it’s reaching out to those clients where you see a benefit, and then with others, it’s, ‘Hey, it’s OK to wait a little bit longer,’ and let them know that they’re going to have a greater benefit in the future.”
As the US mortgage market recovers for 2025, Harish Tejwani of ARIVE and Michelle Dugan from MS Lending shared insights on how brokers are gaining market share, driven by consumer education and technology.https://t.co/wsvhiCN316#MortgageBrokers #RealEstate #Refinancing
— Mortgage Professional America Magazine (@MPAMagazineUS) October 1, 2024
How are brokers marketing themselves to snag new clients?
In the country’s priciest markets, many buyers – especially those hoping to purchase for the first time – see little chance of being able to afford a property. But elsewhere, a brightening outlook means hopeful buyers could be tempted to make a move, with brokers carefully positioning themselves to capture that business.
With a few clicks of a button, borrowers are able to find a list of reputable brokers in their area – and a glut of five-star Google reviews is among the best ways for brokers to differentiate themselves from competitors. While asking for those reviews can sometimes be an awkward step in the mortgage journey, Michelle Althea Ho-Sang (pictured, top right), a broker with C2 Financial in Coral Springs, FL, said it’s now second nature to her. “I think the biggest thing is just asking, making it a part of the process, part of my routine,” she told MPA.
“I really try to build a great relationship, more conversation. It’s not a transaction for me – it’s another family on the other side. And I really try to help them know that, and I take down some of their [guards]. From day one, I kind of set the expectation that I’m going to be the guide, that I’m going to help see them through, and so it’s really easy for me to ask [for reviews] at the end because we’ve already been in this little short-term relationship and most of the time they’re super happy.”
Tech advancements set to continue driving progress for brokers
Acosta said learning from the adage of doing right by the customer is the best way for brokers to prime themselves for an uptick in business as they look ahead. The broker space is also set to benefit, he added, from the enormous advancements that are taking place in technology – as long as it deploys it wisely. “If we continue to do the right thing for the consumer, there’s no limit to how we can grow,” he said.
“And the second part is just evolving [technology]… I think that we have to stay ahead of the curve so we can make sure that we’re in line with what all the big banks are doing and all the big lenders.”
Technology will prove a key focus for Ho-Sang as she looks ahead. “I think it’s a really exciting time,” she said. “Not only have rates come down, but they’re continuing to come down. I think just the technology we have access to right now, we’ve never had it before: things like AI… just being able to provide more value, do things quicker and more efficiently for the client.”
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