With Brexit, mortgage rates have fallen to their lowest levels. Also feeding this decline is the lack of growth in the economy. This presents us with yet another good news; bad news scenario.
Fannie’s latest Home Purchase Sentiment Index dropped 2.1% from last month. Overall, this index is now down 1.5% since last June.( Sentiment )
This means that people have a poorer outlook on their potential to buy a home. Why? Concerns over employment, income, and the general condition of the economy to name a few. Not so good.
However, other sectors fared a little better. Those who think “now may be a good time to sell a home”, and those who believe “it’s time to buy”, increased. While a larger percentage believe that home prices may not increase.
All in all, this is not a glaring endorsement of the economy. This presents some unique challenges to lenders.
so it is important that they are aware of the benefits of homeownership and all the programs now available to help them own a home.
Unfortunately, some of their perceptions are driven by a belief that they still need at least 20% down and a 720 credit score. These myths must be debunked. Otherwise, we’ll continue to see fewer and fewer buyers entering the market.
As I’ve said before, low rates alone won’t do it. Now is he time to get aggressive and go after new business. Don’t sit back and play the refi game. Like the low rates, these may not last forever.
The game has changed. Play different.