High Five: Rates Are Moving - Are Your Prospects?
Mortgage interest rates have gone up for five consecutive weeks as of the week ending February 8, according to the Freddie Mac Primary Mortgage Market Survey (PMMS), and Mortgage Bankers Association (MBA) Chief Economist Mike Fratantoni says this is the year where mortgage interest rates will likely approach 5%. Historical data indicates that once we cross that 5% threshold and rise beyond – which Fratantoni believes will happen in 2019 – we may not see interest rates at current levels again in our adult lifetimes. Mortgage and real estate professionals know it’s time for people to get moving, but are you communicating it powerfully and consistently to your prospects?
Mortgage reviews, rent versus own comparisons and equity evaluations are routine. But as we enter what is likely to be a major market shift, are you promoting them in ways that will motivate your prospects, past clients and sphere of influence to explore their options?
It’s a good time to take inventory of your marketing collateral. Are you reaching out to your post close databases regularly? Do you have campaigns and other outreach that provide relevant, current market information that can elicit questions? Do you mention your ability to help friends, family and co-workers in your correspondence? Are you consistently working multiple channels – online, social media, print and community? You can prioritize and organize your critical money-making activities with the 1-Page Business Plan, worksheet and tracker to stay focused and on task.
Advertisements have been bellowing about “interest rates at historic lows” for years and a large segment of consumers have never experienced a different borrowing climate. It’s incumbent upon lending and real estate professionals to educate the public about what’s possible today and what will change as we move into an era where it’s more expensive to borrow money. Consumers who miss out will be pouring cash down the drain. Mortgage loan officers and Realtors who fail to publicize possibilities and outline future scenarios to help people understand their options will leave money on the table.