Top 5 Mortgage and Housing Trends in the First Quarter of 2020
Now that 2020 is nearly six months old, it’s interesting to see which mortgage and housing trends have had an impact on the new year’s market. In this post, we look at the top five trends currently impacting the mortgage business, outside of issues pertaining to the current global pandemic.
#1: Mortgage Rates Remain Low
Low mortgage interest rates is a trend that has carried over from 2019, and if all predictions are to be believed, it’s a trend that will continue through the year. In fact, many are expecting the rates to fall even further as the year progresses. Despite it being an election year, forecasters state that mild inflation and easing trade tensions will continue to have a positive influence on the rates.
#2: Affordability Remains an Issue
The housing market is currently facing an affordability issue that is causing sales to drop. Despite interest rates being at historic lows, home prices are rising to the point that many buyers are being priced out of the market. The only remedy to this problem is for incomes to increase at a rate suitable to help bridge the divide. This remains to be seen.
#3: Low Inventory Is Also a Problem
A drop in entry-level homes and declining seller sentiment has caused the market to experience a shortage of available properties. There just simply aren’t enough homes being built to meet the demand, and this is the core reason why selling prices are rising at a consistent rate.
#4: Bidding Wars Occur More Frequently
The shortage of houses on the market has demand rising sharply. This means that sellers are seeing multiple competing offers, something that’s great news for sellers but not so great for buyers. Unless home availability improves, bidding wars will remain a common fixture throughout the first year of the new decade.
#5: Cash-Out Refinances Grow
Since 2008, fewer Americans have been taking out home equity lines of credit. This has resulted in the country’s homeowners seeing their home equity double between 2011 and 2019. But one refinance product that remains popular is the cash-out refinance.
More than half of 2019’s refinances were cash-out refinances, which is a trend that’s continued into the new year. While cash-out refi numbers are still lower than they were back in 2006 (before the housing crisis), it’s a product that continues to be popular among homeowners looking to take advantage of the equity they’ve built.
Let RGR Marketing’s Mortgage Leads Help Your Business Grow in 2020
RGR Marketing has been a leading provider of high-quality mortgage leads for more than 20 years. Our clients expect the very best from us, and our commitment to excellent is why we’ve endured for more than two decades. If you need mortgage leads to keep your sales team converting sales, then we can provide you with highly targeted, exclusive leads at an affordable price.
The year’s hottest selling season is just about to begin. Get the leads you need based on your target customer profile and enjoy more closings and greater success. Don’t wait to get the mortgage leads your business needs to stay ahead of the competition this year – contact RGR Marketing today!
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