With the recent election, rising rates, improving the economy, more job opportunities, and wage growth, things could be looking up for housing and mortgage lending in 2017. Then again…maybe not. It all depends to which economist or so-called expert you listen.
Here are some recent headlines about housing and home-financing:
- Borrowers brush off rising rates, pushing mortgage applications 2.5% higher
- U.S. home sales near 10-year high as mortgage rates rise
- Rising Rates Threaten to Complicate 2107 Housing Outlook
- Housing Experts: The Shocking Downside to Home Sales Increase
The market’s up; the market’s down; the market’s all over the town. One thing is for sure, it will be a purchase market in 2017 and there will be buyers and sellers participating.
How many buyers? The estimates vary, but by most guesstimates, we’re looking at about $1.1 billion in purchases in the next year. That’s not so bad.
What I do know is that if you sit around and listen to all the prognosticators, you’ll be looking at your future through the rear view mirror. Don’t wait to be told about the good and the bad, and about what happened in housing and lending, get out in front with your plan on how you are going to compete in 2017 and beyond.
- How do you plan to maintain or increase business? More originators, new business channels?
- Will you offer any new products? FHA/VA/ 203K/ USDA/Alt QM? What else might be available?
- How will you streamline operations and manage expenses? Training, technology, outsourcing?
- Do you have your goals set for next 3 to 5 years?
Now is a great time to take a good, hard look at your company, what you’ve done and what you want to accomplish going forward. Are you adequately prepared to compete in a purchase market?
- Are LO’s trained to service Realtor/Builder business?
- Are systems in place for online applications and electronic communications?
- Do you have the technology and training to manufacture quality, compliant loans?
When it comes to the 2017 housing market, some experts are bulls, and others are bears. Regardless of which market exists, that will be the market in which you’ll need to compete and succeed.
To do so, you should take stock in your existing operations now to make whatever adjustments are necessary to stay out ahead of your competition in the new season.
Don’t wait for all experts to tell you what happened. Be prepared to take advantage of what’s going to happen. Set the pace, don’t follow the crowd. If you’re not the lead dog, the view never changes.
All the best for a very happy, healthy and prosperous New Year!