After 11 straight rate increases through late 2023 to combat rising inflation, the Federal Reserve stated that they intended to lower rates in 2024 and 2025. While those cuts haven’t come as quickly as lenders (and consumers) would have liked, there’s growing consensus among industry experts and economists* that the first rate cut in nearly two years is on the horizon. Once rates begin to fall, homeowners who purchased in the past 18 months will look to refinance—presenting both opportunities and challenges for lenders.
If rates drop below 6.625% (as many expect by the end of 2024), organizations working with Total Expert will be looking at an estimated $170 billion in refis up for grabs—and that opportunity jumps up to $375 billion if rates get down to 6.0% (as has been predicted by the end of 2025). Without a strategy in place to identify, engage, and retain at-risk loans, lenders could face significant early payoff (EPO) penalties that add insult to the injury of lost loan revenue.
Our latest ebook will show you how to minimize the risk of EPO penalties, increase your retention, and drive growth once rates begin to fall.
*https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/
