Mortgage Market Update | November 12, 2024
?? Market Pulse: Rate Rollercoaster & Market Dynamics
Recent market movements show rates briefly dipping below 7% before returning to higher territory. Current rates hover in the 7% range, notably below the 8% peak from last year but above the recent sub-7% teaser. Election-related volatility continues to influence market movements, with tomorrow's CPI report expected to be a key market mover.
Pro Tip: Use GuidelineGPT to stay current on rate-dependent loan programs and leverage Zeitro's Rate Pricing System to quickly identify the most competitive options for your clients. Consider reaching out to past clients who may benefit from a refinance as soon as rates show downward movement.
?? Banking Trends: SLOOS Report Insights
The October 2024 Senior Loan Officer Survey reveals a mixed lending landscape. While standards remain stable for larger firms, small businesses face tighter conditions. The credit card market shows increasing selectivity, with banks favoring prime and super-prime borrowers.
Quote of the Week: "Today's lending environment demands a strategic approach to qualification. Understanding your borrower's full financial picture isn't just good practice – it's essential for success in this market." - Tom Barkin, Richmond Fed President
Pro Tip: Utilize Zeitro's Affordability Calculator to help borrowers understand their options across different scenarios. This tool can be especially valuable for near-prime borrowers who may need guidance on improving their qualification prospects.?
?? Consumer Credit Watch
Total consumer debt reached $5.10 trillion in Q3 2024, growing at 3.28% annually.
Key highlights:
Pro Tip: Prioritize your marketing channels to showcase your Zeitro Microsite and educate clients about debt consolidation opportunities through mortgage refinancing. The high credit card rates create an excellent opportunity to discuss debt management strategies with your clients.
??? Housing Market Update
Encouraging signs emerge with:
Pro Tip: Leverage your Zeitro Application Intake system to streamline pre-approvals for buyers entering the market. With inventory increasing, quick response times are crucial for helping buyers secure properties in competitive situations.
?? Action Items for Growth
Remember: In this dynamic market, staying informed and leveraging technology tools can help you provide superior service while growing your business efficiently.
Contact a Zeitro representative today for more!
Are Your Rates Competitive?
领英推荐
Mortgage | November 12, 2024
Mortgage lenders will be more profitable in 2025, but there are headwinds, Fitch says
The election of Donald Trump as the 47th president of the United States has brought mortgage rates closer to the 7% threshold, but Fitch Ratings expects them to settle lower in the coming months. Looking ahead to 2025, analysts from the credit ratings agency expect declining rates to increase mortgage origination volumes, driving profitability for nonbank lenders...
Real Estate Market | November 8, 2024
Is the worst coming to an end? NAR’s chief economist thinks so
The housing industry is on the verge of a turnaround, according to Lawrence Yun, the chief economist for the National Association of Realtors (NAR). But don’t expect interest rates to fall back to 4% anytime soon.
Speaking at the NAR’s Residential Economic Issues and Trends Forum in Boston Friday, Yun said that after an “awful” 2023 and a difficult 2024, housing inventory is improving, mortgage rates are stabilizing, and job growth is continuing. He also pointed out that household equity in real estate is at record levels.
“Maybe the worst is coming to an end,” Yun said of the home sales. “Directionally, I think there’s going to be roughly a 10% boost of existing home sales in 2025 and 2026..."
Mortgage | November 7, 2024
Mortgage Rates Forecast For 2025: Experts Predict How Much Rates Will Drop
Mortgage rates were on a downward course—until they weren’t. After falling in September to a 2024 low of 6.08%, the average rate on the benchmark 30-year mortgage made an about-face, rising to 6.79% the week ending November 7, according to Freddie Mac data. Still, despite the surge, mortgage rates are 1% lower than they were at the same time last year. This likely accounts for the sizable increase in refinance activity compared to a year ago.
Additionally, although the Fed cut its benchmark interest rate by 25 basis points in November and Fed watchers expect another 25-basis point cut following the Fed’s final 2024 meeting in December (one basis point is one one-hundredth of a percentage point), mortgage rates are unlikely to decrease enough in 2024 to make homeownership affordable for many would-be buyers. Here’s what to know...
Thank you for reading!
Subscribe now for more mortgage news and insights to keep you ahead of the competition!
P.S. Want to learn more about Zeitro? Schedule a pressure-free educational demo and explore the platform. ??
?? Plus, It's completely FREE to sign up, no credit card required. Try it yourself today!