Amerifund president shares strategies for eking out business
The mortgage market moves in cycles, and brokers and loan officers across the country are cautiously optimistic that the end of the current one is in sight.
Climbing interest rates since 2022 have pummeled the market, bringing about a protracted slowdown that’s seen scores of loan originators exit the profession as would-be homebuyers step to the sidelines.
But a trend towards lower mortgage rates in recent months, and strengthening signs that the US economy is headed for a soft landing, have boosted hopes for a resurgence towards the end of this year moving into 2025.
In the meantime, the current cooler market may have some way left to run – and a leading mortgage executive is advising brokers and loan officers to continue doubling down on what’s worked for them in the past while waiting for brighter times ahead.
Jamie Cavanaugh (pictured top), president at Amerifund Home Loans, told Mortgage Professional America it was essential for LOs to stick to the tried-and-trusted plan even in the face of fatigue brought about by the grueling market of recent years. “The advice I give is ‘Don’t stop doing all the things that you know consistently build business,’” she said.
“Understand that in a market cycle like the one we’ve been in, you’re going to have to work four times as hard to get the same results you may have gotten earlier with less – but at the same time, if you apply the laws of sales and the logic and track record and the history, when you look at the market and you look at the industry beyond just the last five years, it’s inevitable that it will change.”
Rates have fallen – but don’t expect them to keep dropping at same pace
The next cycle might be on its way – but hopeful buyers or refinancers should be careful not to expect another immediate big dip in rates, Cavanaugh said. That’s because the Fed’s last rate decision, which saw a 50-basis-point cut to its funds rate, was largely already priced in by investors and was followed by a mild uptick in mortgage rates.
That meant only a short window of opportunity in recent weeks for homeowners hoping to refinance. Top mortgage professionals, Cavanaugh said, had already anticipated that, and had kept clients alert and ready for a phone call from their broker or LO when the time was just right to lock in a new rate. “We were able to move quickly and were able to help people,” she said.
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“For those same customers, if they didn’t act within a day or two of that particular moment [the Fed cut], those rates were gone. Now, will they be back? Yes – I know that they’ll be back. But will they be back in one sweeping reduction? Probably not.”
Is another Fed cut on the way before the end of the year?
The Fed’s oversized cut was its first for nearly four years, and immediately sparked speculation that further reductions were on the way. But last week’s surprisingly strong labor market report, as well as chair Jerome Powell’s rhetoric on the issue, have seen some market watchers row back expectations of another cut next month.
Whatever the case, there’s plenty of reason for optimism as mortgage professionals look ahead, according to Cavanaugh. “My belief is that we’ll see a couple more reductions,” she said. “I don’t know if we’ll see one before the end of the year. I hope we will… but I do believe that 2025 will be a year of successive rate decreases in small increments, which can make a lot of sense for a lot of customers if they’re aligned with their loan officer and are kind of watching to strike when the iron is hottest.
“So I think it’s going to be a great year. I think that we’re coming to the end of this really long cycle and I think now is the time for everybody to double down on efforts and make sure that they’re in preparation mode.”
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