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2016 was an impressive year for the housing market. According to The Street.com the value of U.S. homes hit a record of $29.6 Trillion, led by Los Angeles and New York. Renters across the U.S. spent $478.5 billion on housing, a $17.7 billion increase from last year. But what is in store for the housing market in 2017, particularly post-election? Much of what we’ve heard so far about the future of the housing market has been pure speculation, which is unsettling for some. Still many are hopeful that we’ll continue to go into the direction of both stability and growth. 2016 was a sign that the housing market recovered from the mortgage crisis of 2008.
Will interest rates rise?
Many of you are concerned with the rising interest rates and how it will affect your business. As my old Sales Manager would say “never sell rate sell service”. In other words, “Sell Customer Service”. Should the interest rates rise, rethink your marketing strategy. Don’t panic! What gives most lenders the competitive edge is that they’re able to close loans quicker due to streamlined processes and technology. If your company has 24-hour self-service portal for customers to check in on their loans, sell it! Redirect your customer’s attention from the rising interest rates to customer service.
I mean, we’re speaking hypothetically here but the idea is to think quickly and strategically plan for change. Should the interest rates rise send out an email blast to your customers alerting them that rates have risen. Even if they’re not ready to lock at that time, give them a heads up anyway. This will prepare them for when in fact they do decide to lock, they’ll know they may receive a slightly higher rate than what was initially quoted.
While it’s understandable that this information is already provided in your upfront documentation, sending out an email blast reiterates the information. Your customers will appreciate you going the extra mile and more importantly there won’t be any surprises about the rising interest rates when it’s time to lock the loan. You may want to give your referral partners a heads up as well. Just to keep them in the loop. The point is: Don’t panic over something that has happened yet. Second, if it does, rethink your marketing strategy.