Understanding the Positive Aspects of the Mortgage and Housing Market as We Head Into Spring

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April 11, 2023 | By RGR Marketing Blog

What's Working With the Mortgage and Housing Market Right Now?

Mortgage loan officers haven’t exactly had an easy time of it over the last few years. With the turbulent nature of the real estate market, finding qualified buyers has been hard enough. But when you add in all the uncertainty that has plagued the market in recent years, convincing prospects that it’s a good time to buy is also made more difficult.

This is where understanding the positive aspects of the mortgage and housing market can greatly benefit the loan officer. Being able to convey the positive changes can be impactful in helping your prospects overcome their hesitations to buy now. Here are some of the more positive aspects of the market as we head into spring.

Interest Rates

After showing a promise of dropping for a couple of months, interest rates have climbed back up to hover around 7 percent for a standard 30-year fixed-rate mortgage loan. This obviously isn’t exactly good news for home buyers, but industry experts are optimistic that along with spring’s usual increase in activity will come some relief from the Federal Reserve. At this point, any decline in the rate would be seen as a positive.

Inventory

Since the 2008 housing crash low inventory has been somewhat of a steady problem for the housing market, especially because the construction of new homes has yet to recover to pre-crash numbers. And with interest rates where they are, few homeowners with existing rates of 4 percent or less, which accounts for 70 percent of homeowners, will be likely to sell. This will put additional pressure on those looking to buy in the spring.

So, what’s there to be happy about?

The most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) saw builder sentiment rise by two points, from 42 to 44. This is the third month-over-month increase after 12 consecutive months of declines. It might be a small positive, but it’s still a positive.

Buyer Incentives

The Biden Administration aims to give Americans down payment assistance for purchasing quality housing with its Downpayment Toward Equity Act, which at the time of this writing has yet to be passed. If passed, this Act would provide eligible first-time home buyers with a $25,000 cash grant to purchase a new home.

This isn’t the only buyer incentive awaiting a vote in Washington. There are nine other bills designed to help low- to medium-income buyers achieve their home ownership dreams. If any of these get passed this spring, it will certainly help stabilize the market further and improve market conditions all around.

Financing

While the previous mentions were only mildly “positive,” in the area of financing, new home buyers have a lot more to be happy about. In 2023, homebuyers will have more conventional mortgage borrowing power, with conforming loan limits being increased from $647,200 to $726,200 for a single-family home in most parts of the country.

There are also new changes being made to how lenders calculate qualifying credit scores, and this move will give more homebuyers a shot at getting approved for conventional loans. Plus, for the first time ever, borrowers looking for cheaper housing options will now be able to finance a single-wide mobile home with a conventional home loan.

Credit Qualifications

Another big positive hitting the lending industry is that lenders will now be allowed to take an “average median score” to meet the minimum credit score requirements. This is great news for borrowers that need two incomes to qualify but one applicant has a credit score below the 620 minimum. Thanks to this change, a high-credit-score borrower can potentially lift a low-credit-score borrower over the 620 threshold, resulting in more loan approvals.

In addition, previously it was required for a borrower to have a credit score of 780 or higher to secure the best available rate for a conventional loan. In 2023, that number has dropped to a minimum score of 740, thus presenting the possibility for many new mortgage prospects to get approved at the lowest rate.

RGR Marketing’s Mortgage Leads Can Help Get Your Spring Growth Spurt Started

Spring is a time of renewal, so now is the perfect time for loan officers to start planting the seeds for a profitable year. And just like starting a garden, the best results come from the best quality seeds, except in the world of mortgages, those seeds are leads.

RGR Marketing has more than 20 years of experience providing mortgage lenders with exclusive access to high quality, highly targeted mortgage leads. Our leads consist of prospects who have shown recent increased interest in obtaining a mortgage or refinancing their current loans, making them what is known in the industry as “hot” leads. This means they are close to making their decisions. And unlike the leads you get from other firms, our mortgage leads are verified for accuracy and scrubbed to remove any duplicates, incomplete profiles, or invalid data. In spring analogy, your garden starts with no weeds in sight.

Partner with RGR Marketing today and get your spring growth spurt started. Our leads can help you improve your conversion results and help you increase your profits in 2023.

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What's Working With the Mortgage and Housing Market Right Now?

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Inventory

Buyer Incentives

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RGR Marketing’s Mortgage Leads Can Help Get Your Spring Growth Spurt Started

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What's Working With the Mortgage and Housing Market Right Now?

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Buyer Incentives

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RGR Marketing’s Mortgage Leads Can Help Get Your Spring Growth Spurt Started

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