Rising interest rates and economic uncertainty have triggered major pullback from consumers, underscoring the necessity for mortgage professionals to revamp and fortify every angle of their business.

Further still, forward-thinking lenders understand that this downturn doesn’t just warrant an immediate response to weather the storm but also to prepare for when the market is white hot again –and that means upgrading the most critical areas now.

Get Ready for 2023

Market Predictions 2023

All Signs Point To Purchase Market Remaining Strong

Buying a home remains an amazing opportunity for those with the resources. With higher interest rates potentially leveling off in the near future, consumers will be looking to mortgage professionals to help them understand their options better – including buydown products that will help them manage their rate for the first couple of years of their loan.

GSE Programs Ensure Affordability and Reignite Consumer Enthusiasm

Home affordability is top of mind for government-sponsored entities (GSEs) right now, and they continue to roll out policy updates so that more people can purchase a home. With sound policies from GSEs and access to information through mortgage professionals like you, consumers are becoming more confident, and homeownership will no longer feel like an elusive dream.

Getting and Retaining Clients: The Goal in this Cyclical Industry

This year, your focus should be on retaining clients. Building a booming refinance market starts with purchases and creating great experiences that keep borrowers coming back for more! Tailor your technology to allow maximum speed and efficiency in closing loans quickly – within two weeks or less – so everyone involved gets an incredible experience at every stage of the process. Doing this will create lots of opportunities for those looking to refi down the road, not only now but well into 2023 too!

Broker Channels On The Rise

We are entering a new era in mortgage brokering, with brokers currently accounting for 22% of loan originations and predicted to surge up to 33% by 2026. Aside from the several thousand in savings that can come with using a broker, consumers are looking for personalized guidance and education –a niche that plugged-in brokers are particularly dominant in.

Winning in the Immediate + Preparing to Dominate

Even without a definitive answer on when the market tides will turn, mortgage professionals must strategize to win in the present and the future.

To be clear, this article isn’t about helping you to “stay afloat” in a challenging market.
It’s about making the necessary technological transformations that help you win in any market –going beyond surviving a storm and shifting into mastering it and having the tools required to service the inevitable demand in the times ahead.

Let’s break down what that will look like in 2023.

2023 is all about Making Strategic Mortgage Tech Investments

Customer Experience is King

Consumers are becoming more and more self-sufficient when it comes to accessing their personal finances. From shopping for a new credit card to comparing car loans (and home finance options), their next financial venture is just a few clicks away. In fact, upwards of 85% of Americans prefer to use a mobile app for their financial and credit needs.

But instant gratification or self-sufficiency isn’t the main differentiator that you think it is.

Consumers have voted with their dollars and made it overwhelmingly clear that they demand an exceptional customer experience.

Have you already made the necessary changes to ensure you’re offering it? Are you delivering it consistently across all platforms and executing it better than your competition? Remember that a customer experience that converts goes beyond convenience. 

It captivates, delights, excites, and provides access to a bright future they’re ready to make a reality. 

Get Ready for 2023

Boost your Realtor Referrals

The mortgage industry has become a highly tech-savvy space, with rapidly evolving technology and user demands affecting every loan transaction. Yet amid all this advancement, we can’t forget human interaction still plays an essential role in generating success.

This could be seen through your online reputation – consumers trust their peers when deciding who they should work with for critical financial matters such as a mortgage.

It’s even more true regarding realtor partners; referrals from this network can make or break your pipeline, no matter the market.

Working together, agents and mortgage professionals are a robust partnership with the same mission: to make home buyers happy! Building an effective working relationship requires more than just teamwork. It takes communication, trust, and the ideal lending ecosystem that optimizes collaboration. 

Depending on where you’re currently in your digital transformation, it could be as simple as filling in existing technology gaps or possibly an entire mortgage tech stack overhaul. Whatever the case, building a wider referral network and developing deeper relationships with realtors should be based on creating the ultimate experience for agents, borrowers, and mortgage professionals.

Get Ready for 2023

Leverage tech for LO recruitment & retain your top producers.

Competition is always high in our industry, so building and maintaining your powerhouse team is even more paramount during challenging markets. It’s also all the more difficult.

One of the best ways to achieve this is by equipping your team with tools that nurture and fuel a healthy pipeline of qualified leads. Intuitive mortgage technology like that from LenderHomePage is designed to delight and capture those high-priority consumers – the lifeblood of your top producers. 

Plus, intelligent mortgage tech streamlines the process and provides your decision-makers with the insight they need to hyper-focus on qualified candidates while seamlessly nurturing the rest.

Get Ready for 2023

Prioritize social media management and digital presence!

Out of all the marketing efforts available, the one that is often considered most paralyzing by LOs is precisely the one that is the most critical for 2023 — social media! 

Consumers are overwhelmingly savvy about using the internet to support their home-buying process, including social media. By making it a priority to capture that mindshare of those browsing social media and asserting yourself as an expert, you can build your brand and earn the trust of potential borrowers. 

While paid social media ads are still king for capturing leads, simply having an active and engaging social media presence is a robust way to expand your sphere of influence, increase lead-generating opportunities, and drive action.

While social media can be daunting, it by no means has to overtake your workday productivity. 

Take advantage of our social media mortgage marketing services that automate the process (from providing the content to automated publishing to done-for-you-branding), and never be worried about leaving “money on the table” by ignoring social media marketing. 

There’s no way around it; the mortgage industry is bracing for a formidable next two years as housing demand and interest rates continue on their path to correction.

But don’t let that distract you from the immense opportunity that is still available –and will multiply.

Get Ready for 2023

Leverage data-driven mortgage marketing strategy.

McKinsey reported as early as 2021 on a powerful trend for both bank and nonbank lenders. Investments in third-party technology and data resulted in massively improved customer experience. However, it also demonstrated that it could similarly turn data-driven insights into a marketing strategy that can help lenders navigate the ever-shifting lending environments.

For example, data could be used to predict a consumer’s propensity to apply for a new mortgage within a specified period of time. By combining traditional credit data and Fair Credit Report Act-compliant alternative credit data* (or expanded FCRA-regulated data), lenders could increase the likelihood of connecting with qualified consumers. Essentially, lenders can leverage the data to analyze who is qualified based on their credit criteria, plus the possibility that they will apply for a mortgage loan.

However, propensity models are only part of the equation. 

Data is also the foundation to hyper-segment your marketing reach, which is particularly critical in times like these when you’re trying to extend your marketing budget. By incorporating your internal CRM data with non-FCRA data, you can further distinguish look-alike populations to customize your messaging across all your marketing channels. 

Once you have your look-alike prospects, you must nurture them in a digital ecosystem that ultimately converts them to clients.

For forward-thinking mortgage pros and those who know winning takes strategy supported by innovative technology, 2023 will be their year. 

Get Ready for 2023

Starting Oct 12, 2022, Facebook will discontinue its “Special Ad Audiences” feature for ad targeting. This major announcement poses a significant hurdle for all financial institutions –including brokers and loan officers –who use Facebook ads as part of their lead generation.

Register for “New Facebook Ads” Webinar

How does this affect Mortgage Ads?

The ‘special ads audiences” is a tool that allowed advertisers to define their target audience. This category only applied to ad campaigns that dealt with credit, employment, politics, and housing, and it aimed to help advertisers define their audience while minimizing possible discriminatory practices that would violate federal laws. 

Facebook ads in the above-mentioned categories were required to use the “special ads audience” tool, according to Meta ad policies. However, this tool will no longer be available beginning Oct 12.

Any ads currently using the “special ads audience” tool will also pause.

Why is Facebook changing its ad policies?

This major update is part of a settlement agreement with the DOJ where Meta (Facebook) was accused of algorithmic discrimination. It was alleged that Meta’s mortgage and housing advertising algorithm discriminated against users based on race, color, religion, sex, disability, familial status, and national origin.

The complaint also asserted that Meta’s advertising algorithms partially relied on those factors that are protected under the FHA.

Are Mortgage Ads a thing of the past?? 

(spoiler alert: No, they’re not!!)

While this change creates a significant obstacle for Facebook mortgage marketing, it does not mean mortgage ads on Facebook are dead!

Advertisers will still be allowed to run mortgage ads to their page followers and will be able to market their page to grow their following — all of which stress how critical it is to grow your digital presence and real estate partnerships. 

At LenderHomePage, we’ve long understood the power of leveraging these factors for business stability and scalability.

This is what it takes to win in all markets despite policy changes.

Join us for a special webinar this Thurs, Oct 14. Led by our the Voice of Customer champion, Kwe Parker, this not-to-be-missed live webinar will give you the insight and tools you need to leverage Facebook advertising in 2023. 

Register for “New Facebook Ads” Webinar

Technology may change many aspects of the mortgage industry, but some things remain the same: reputation is everything.

Whether you’re an independent LO or part of a mortgage team, your online reputation is continuously scrutinized by potential borrowers.

Consider these recent stats on the importance of reviews and revenue:

A study in 2021 by the National Association of Realtors found that 97% of mortgage borrowers started their homebuying journey with an online search (pg 57). Regarding lender reviews, research into consumer behavior by Spiegal Research Center at Northwestern found that displaying online reviews can increase conversion rates by 270%. It also demonstrated that the more expensive the item was, the more critical the review was for influencing purchase decisions. 

Yet another study, this one by the Harvard Business School, found that every 1-star increase in Yelp reviews translated to a 5-9% increase in revenue. 

Get new Online Reviews using our Platform

Gauging Your Mortgage Reputation

Before we get into the strategy of using reviews for mortgage leads, let’s see how you can find out where you currently stand. Here are ways to gauge your online mortgage reputation:

• Check your current online reviews. This includes Google, Zillow, Yelp, Facebook, BBB, or any third-party platform you use to collect reviews. 
• Remember employee reviews, too! Consumers consider testimonials from various angles. So if you have team members, check out what they’ve been saying about what it’s like to work on your team. Start with Glassdoor.
• What’s the word on social media? Check out what others are saying about you by searching hashtags with your name or business name, posts that you’ve been tagged on, and comments on your posts.  
• Read comments from your current digital ads. If you’re running any paid retargeting ads on Facebook, Twitter, Instagram, etc., current or past clients may see your ad and leave a comment –essentially a review.
• Industry forums and group chats. Depending on the privacy settings, this may or may not be visible to the general public. Either way, it’s a great place to gain insight into your mortgage reputation. 

How To Get More 5-Star Reviews and Generate More More Leads

Update Your Online Profile and Business Info

A study conducted by Yext of nearly 6,000 mortgage professionals found that almost half had incorrect or incomplete information on their profiles. Address the details of your profiles, including Facebook, Yelp, and Google My Business (click here to learn how mortgage pros should set up their GMB profile).

Respond to Any Bad Reviews

This one might sting a bit because no one likes to be told they did poorly. But getting a bad review and responding to it can be very good for your business! Potential borrowers value an empathetic response and appreciate you trying to make things right when a customer felt wronged. Read this previous article for tips on how to respond to bad reviews. 

Here’s another benefit of bad reviews, according to the same Speigal study mentioned above, bad reviews signify an “authenticity” about your business that increases the trust factor for consumers!

Ask For Feedback Before Asking For a Review

Sometime during the borrower’s journey, ask your client for feedback about their experience. Use open-ended questions like, “How do you feel about your mortgage experience with us so far?” If it’s anything less than enthusiastic, ask how you can improve it. If it’s all gold stars, it’s a go for asking them to leave a review. 

Remember to ask for a referral, too! Referrals are a goldmine for mortgage leads. 

Host your Reviews on your Website

Make It Easy For Borrowers to Leave a Review

Remove the hassle and clear the pathway for more reviews. Do this by giving them multiple review platforms, minimizing the number of clicks it takes to get to the review site, letting them know it only takes a minute and sending the request multiple ways, such as email or SMS. 

Post and Share Positive Reviews That You’ve Already Received

The influencing power of positive reviews also works to gain more of them! Share your reviews across social media and display them proudly on your mortgage website. Displaying reviews encourages past customers to leave you a review as well.

Manage Reviews and Continue to Listen

Continue to manage your online reputation by setting up Google alerts (it’s free) or another review tracker to send you notifications automatically. Remember to schedule in time to respond, too. The faster, the better. 

Bonus tip: Snoop on Your Competitor by Reading their Reviews

Want to know more about what your competitor is doing right or wrong? Read their reviews! Use that feedback to improve your service quality and gauge what borrowers in your area value in a mortgage experience. 

Remember that over 93% of consumers use testimonials in their decision-making process. That goes for choice in mortgage service providers too. Take care of your online reputation, and your reputation will take care of you. 

Get More Leads from Testimonials

LenderHomePage named MPA’s Top Mortgage Employer of 2022, marking a consecutive win in this honored recognition. 

Mortgage employers face new challenges as headlines about inflation and company downsizing loom in the industry. Providing reassurance and leading a workforce during this trying time isn’t easy. However, the employees of these honored companies voted that they feel abundantly supported by their employer.

“Helping our clients win is foundational to our business model, but it’s equally important that our LenderHomePage team feel like winners too. Creating a culture that fosters pride, enthusiasm, innovation, and recognizes hardworking people has been pivotal to our success and that of our clients,” comments LenderHomePage CEO Rocky Foroutan.

 “We’re known for continuously evolving to meet the ever-changing needs of our clients, the market, consumers, and technology. That can only be accomplished by hiring the best talent to service our clients and fostering opportunities for employees to do their best work. I’m proud of our team, and they know I’m committed to seeing them thrive.”

To be considered for this prestigious award, the organization must have at least an 80% satisfaction rating and meet the required amount of employee responses based on the company’s overall size. The anonymous survey asked employees to rate satisfaction on key factors such as compensation, career development, work environment, and culture.

Overall, 22 companies were awarded 2022 Top Mortgage Employer by Mortgage Professionals of America. See the full list on MPAMagizne.com

Mortgage websites are unlike traditional business websites. As a highly regulated industry, lenders have a slew of compliance requirements in addition to state and federal regulations like the CCPA in California and WCAG 2.0 across the nation.

But having a mortgage-compliant website isn’t the only thing you have to worry about.

A mortgage professional’s website must also incorporate crucial structural, design, marketing, branding, and functional elements –all while delivering a borrower experience that delights and converts!

Does your current site meet the standards of 2022 consumers?

Check out this list of the most critical and essential elements your site should have right now.

Essential Elements of a Mortgage Website

Clear Site Navigation and Architecture

Several avenues may lead a user to your site. Google My Business could have directed them to your homepage, or maybe a search query landed them on one of your mortgage blog articles.

Or perhaps a real estate partner or former client forwarded them an email resulting in the user clicking over to your site. Where ever the user came from, it’s important that they can easily find what they are looking for.

Navigation should be located both at the top and bottom of the site. Nest categories in the menu to minimize clutter and include a link to a site map at the footer.

Also, make sure the navigation is intuitive to the visitor’s device.

View Template Gallery

Visible Call-to-Action (CTA)

Again, depending on the page the user landed on and their intent, you’ll want to provide clear direction as to what to do next, and there are several key spots where you want to include a CTA.

Your homepage should include a lead capture form, and it’s good practice to have an apply now at the top of your navigation –visible on every page they visit on your site.  Including a CTA at the end of every article and a lead capture form on key evergreen content is also an excellent idea.

The CTA can vary in wording, but essentially you want to encourage the user to continue through the sales funnel and get closer to completing an application. This can be accomplished by:

Telling them to contact you for more details on a particular program

• Pre-qualify using your online form
• Download your mortgage mobile app
• Subscribe to your newsletter
• Read more articles about a specific topic on your blog

Mobile-Friendly Version

There’s some confusion about what constitutes a “mobile-free” website. Mobile-friendly isn’t just about its site resizing to fit on a smaller screen. According to Google, a website must have these features to be classified “mobile-friendly” by their Google bots:

• Avoids software not commonly used on mobile devices –like Flash.
• Uses text that is readable without zooming.
• Content fits the screen without requiring users to scroll horizontally or zoom to view
• Places the links far enough apart so that the user can tap on the correct one easily.

Well-Defined Mortgage Business Brand

Your brand is what makes you memorable and unique. From a mortgage consumer’s perspective, a well-defined brand makes them feel at ease and familiar.

It can also give them a sense of happiness and satisfaction -both rooted in the emotional connection that digital consumers build with brands they find trustworthy.

When it comes to your website, make sure that you communicate your brand throughout your site –from your logo and tagline to mission statement and “about us” pages.

Even font and color scheme elements communicate your brand to the digital consumer, so be mindful of that when customizing your mortgage website.

Mortgage Content and Resources

Many loan applications begin with questions like, “how do I…?” or “the truth about…” or something similar. In other words, it’s unlikely that a digital consumer landed on your site because looking to apply for a loan at that time.

A consumer typically lands on a mortgage site researching loan or real estate services and topics, making it essential to have a library of well-written informational articles on your site. Note that relevant content goes hand-in-hand with your SEO efforts and search engine ranking.

Reviews From Previous Happy Clients

Positive reviews from past clients underscore a phenomenon called social proof. Social proof is the idea that others place a higher value on something simply because someone else has placed a high value on it.

Social proof also encourages people to follow suit. In other words, if a prospect is unsure if using your services is the correct course of action, seeing that someone else had used your services and was happy with the result will reinforce the idea using your services is the best action to take.

So while positive reviews raise the trust factor,  reviews also make your services more valuable and desirable. This is why this element is necessary for your site.

Pre-Designed Mortgage Websites by LenderHomePage

A well-built mortgage website that connects to a digital consumer takes more than just looks.

It must also be compliant, well-branded, and positioned as a reliable, professional resource for all mortgage needs –all of that in addition to easy to navigate and designed to capture leads!

Our flagship product, mortgage websites, is still one of our most highly-praised digital mortgage assets. We’ve maintained this reputation by consistently improving and evolving with the needs of our clients, their digital borrowers, and search engine trends.

Explore our gallery of templated mortgage sites –including designs tailored for personal branding –and try it free for 14 days.

Choose Your Mortgage Template

Digital presence is vital to your success. Consumers turn to the internet when they want to learn more about a loan officer or a particular loan product, making it crucial for LOs to have a robust digital presence. How easily your business is found online, how effective you are at conveying trust, authority, and value, and how well you connect and engage with current and potential borrowers will all determine your business longevity from this point forward.

Download Ebook

Digital presence is the modern lender’s differentiator.

Digital presence includes all online platforms and content you have control over – such as your website, social media profiles, email campaigns, etc. It also involves those you may have no control over, such as online reviews, testimonials, and general feedback. The same goes for both web and mobile presence.

Check out these recent stats on digital presence and consumer online behavior:

• The average consumer reads 10 online reviews before making a decision. (Hubspot, 2020)
• 88% of consumers trust online testimonials as much as personal recommendations. (Hubspot, 2021)
• 63% of consumers need to hear company claims 3-5x before accepting it. (MarketingBlender, 2020)
• Facebook is the most widely used social media platform. About 68% of US adults report that they are Facebook users (Pewinternet, 2018)
• 81 percent of US adults aged 30 to 49 are active social media users. This number falls slightly to 73 percent for those aged 50 to 64 and 45% for 65 and above. (Pew Research Center, 2021)
• 71% of consumers who had a positive experience with a brand on social media are likely to recommend the brand to others (Lyfe Marketing, 2019)
• Businesses average 67% more leads every month if they have a company blog than those who don’t. (Learn Hub, 2020)
• 59% of consumers cite at least one online channel as a source of initial awareness. (Responsify, 2022)
• Consumer’s online activity begins with a search 97% of the time. (Compare Hare, 2020)
• 18% of local searches on mobile devices lead to a conversion within a day. (Junto, 2022)

However, building your mortgage business’s digital presence can seem daunting. With so many platforms, terms, and varying trends, staying on top of it can be challenging –especially if you don’t know how to do it or tell if your actions are successful.

Even online-savvy LOs can mistakingly think they have this “digital presence thing down” when, in reality, they’ve simply blurred the line between personal social media use and digital reputation management (hint: they are not the same).

This ebook will lay out the first foundational steps for creating a robust digital presence.

We’ll go over everything from how to improve your website traffic to social media content with the highest engagement to increasing your presence in the inbox! But first, let’s review why digital presence is so paramount to your success strategy.

Stand out from the competition. Get noticed with disruption. If you want to reach a millennial borrower, you got to shake things up. When it comes to tactics for driving mortgage website traffic and having a lead pipeline that’s constantly filled, doing something that get you immediately noticed seems to be the way to do it. 

And there’s some truth to it. That’s why companies spend millions of dollars on 15-30 second Super Bowl commercials. But simply doing something “outside the box” is hardly a growth strategy – and indeed not a wise financial investment in an uncertain mortgage market. 

However, implementing innovative marketing, business, and technology tactics have proven to be critical for success, for businesses large and small. The key to doing this right is to discover a consumer need or target market that is currently ignored.

We call this “White Space.” 

White Space is where consumers’ unspoken, unmet needs are discovered. White Space is used to spark innovation, and uncover new revenue opportunities by reaching a new consumer or making improvements to the current process. 

Whitespace exists in all industries. It’s contained in the unoccupied territory where rules are unclear, authority is fuzzy, and strategy is vague. And it’s here where enterprising originators find the most success for driving innovation, finding new lead sources, and discovering untapped revenue outside of market fluctuations. 

Moving From Black Space into White Space

Black space encompasses all the business and marketing tactics you have already tried or incorporated into the business. Therefore, the White Space would be all the opportunities outside that scope. Remember, White Space encompasses the unmet need of consumers, and discovering those needs won’t occur by happenstance. 

When Tesla emerged as a frontrunner in car manufacturing, it wasn’t luck. There was an opportunity Elon Musk saw in the White Space by developing electric sports cars. 

When Carl’s Jr launched their $6 burger (more than double the price of most fast food burgers at the time), it was a strategic move discovered in the White Space where they found an untapped market in-between “fast food burger” and “restaurant burger.”

Your local fusion restaurant is another example of opportunity born in the White Space. The wine and paint night business is yet another –providing a space to drink and socialize that’s not a bar. Revolutionary! 

How can you move into the White Space to reveal new opportunities for your mortgage business? Read below for strategies to get started:

Discovering The “White Space” in Your Mortgage Business

Innovate Upon What You Already Have

The perfect place to uncover areas where your prospects’ and borrowers’ needs are unmet is to examine your current offering. For example, are you still using the same Wix site from when you started your business? Then it’s time to ditch it and launch a professional mortgage website. 

Are you still using your personal social media profiles to market your business? Then it’s time to not only create new consumer-facing profiles, but it’s also time you create a strategy and budget for digital marketing for mortgage leads. 

Target A Separate Consumer Segment

If you’ve been struggling to reach enough prospective borrowers for your main loan product, it would be worth exploring a segment of that consumer market. For example, if your main product is FHA loans for first-time buyers, consider whether there is a separate pool of loan prospects within that target market (this is similar to the Carl’s Jr example mentioned above). 

By moving into the White Space, you may discover that there is a growing Hispanic population in Denver and surrounding areas. Or the White Space may reveal that there is an influx of tech professionals relocating to your state. These subgroups would benefit from an FHA loan. However, reaching them requires a refined tactic. 

Analyze What Makes Your Mortgage Services Different

Many mortgage companies make the mistake of trying to be everything to everybody. While there’s value and truth that you can do every type of loan, consumers tend to trust professionals that are specialists. The specialization could come from a particular loan product, expertise in financial challenges, locale, or even association with a distinctive group such as law enforcement or being bilingual.

Your specialization could also come from other sources, such as exemplifying your modern lending capabilities or demonstrating care by humanizing the borrower experience. 

So if you haven’t already pinned down what makes your mortgage business different from your local competition, move into the White Space to reveal it. If you already know your winning difference, use the White Space to lean into it harder. Doing so can help you find ways to strengthen your branding and uncover new tactics in lead generation. 

White Space is a much-respected and innovative practice that can help mortgage companies build their niche in a crowded market. Remember, it’s not just about standing out or thinking “outside the box” —White Space is a place to discover ways to reposition your business and maximize opportunities from the unmet needs of consumers. 

Have you found this article helpful? Subscribe below and get mortgage business and marketing ideas delivered to your inbox every week.

Looking for more ways to move your mortgage business into the White Space? Talk to an account executive today to learn more about our brandable and stackable digital mortgage tools that help you to customize the lending experience to any target market.

The US housing market had an epic 2021, with an estimated 6 million homes purchased last year. However, benefitting from these sales depended on whether one was the buyer or the seller.

According to the Federal Housing Finance Agency, home prices increased by nearly 20%. And, in some hot markets, homeowners saw double those profits. Homes were flying off the market soon after they were listed. Even homes with significant damage (such as flooding or fire) had offers well over their asking price. As you can imagine, sellers saw some awesome gains.

But this wasn’t the case for homebuyers. 

While mortgage rates were at record lows for most of the year, finding a home was still challenging. Inventory reached an all-time low, and competition was fierce, forcing prospective buyers out of the market without a home to call their own. 

No doubt, last year’s housing market was one to remember. Here’s what to expect in 2022.

2022 Housing Market Outlook

Record low mortgage rates are over.

While last year began with the lowest rates on record, they didn’t last long. By spring, they reached the year’s peak of 3.18%. Rates have fluctuated since, but we can expect interest rates to increase in 2022.

Also, the Federal Reserve has hinted that the pandemic monetary policy will end to help curb inflation –ultimately pushing interest rates upward.

While the revised policy won’t financially benefit those looking to purchase a home within the next few months, it’s still a good idea to encourage them to do so. Experts predict rates will hover around the low 3% range through the first quarter of 2022 but will likely increase by up to half a percentage point as we near the end of the first quarter and enter the second. 

Chief economist at the National Association of Realtors, Lawrence Yun, expects the 30-year fixed to inch up to 3.7% by the end of 2022. While notably higher than pandemic rates, this higher one will still be lower than the 2020 rate, around 4%.

Lower-priced and median-priced home buyers will feel this the most as increased rates coupled with inflation will strain their already tight budget. 

Inventory will remain a challenge.

Inventory will remain tight even with properties becoming available in the spring 2022 homebuying season. Realtor.com predicts property availability to increase only by about 0.3% in 2022 –encouraging some extreme buying tactics in some areas of the country. Offers that include buying the seller’s next home or bidding $100k over the asking price have been seen in particularly aggressive markets. 

This brings us to our next prediction.

Home prices continue rising.

Home prices went up in nearly every part of the country last year, up about 13% –or 19% for new constructions. While we won’t see these double-digit gains this year, prices will continue the rising trend in 2022, though at a slightly more moderate pace.

As for the National Association of Realtors, they estimate that this increase will be by 5.7%. They also expect the housing market and broader economy to normalize somewhat in 2022 as the Feds try to tame inflation.

First-time buyers will continue to struggle.

Few available homes, skyrocketing prices, and competing with all-cash offers pushed many first-time buyers out of the market last year. Despite the “excess savings” that many Americans accumulated in 2020-21, it seems like it’s still not enough. “People don’t feel like they are participating in what they consider to be American life through homeownership,” said Yun. “All their work to build up savings can feel less meaningful in the face of rising prices.”

Furthermore, mortgage types favored by new homebuyers, like FHA and VA loans, were often declined in favor of all-cash deals or conventional loans.

Despite the seemingly grey cast over the market, many homebuyers remain optimistic, aiming to make their homebuying goals happen come spring 2022. 

We’re recapping 2021 and the remarkable shifts that made for an excellent year for the mortgage industry and 50% growth for LenderHomePage!

As the year draws to a close, we’re seeing mortgage rates inch away from the record–lows of 2020 and early 2021. However, when we look at them from a historical perspective, rates are still ultra-low. Three years ago, December’s 30–year rate averaged at 4.75%, and December 2019 averaged around 3.75%. 

According to Freddie Mac, there was also a 33% increase in refinances when comparing the first half of 2020 to the first half of 2021 – amounting to an astounding $1.6 trillion in first-lien refinance originations. This also translated to borrowers saving an average of $2,800 a year. 

Applause all around!

For LenderHomePage, 2021 was a pivotal year of product improvement, integrations, and company growth.

Check out all the advancements that we made and that our clients benefitted from:

Early 2021 marked the deadline for the much anticipated and compulsory URLA Mismo 3.4 compliance. Although the industry was warned of the impending change, many originators were slow to transition and faced significant disruption to their business. Fortunately, our Loanzify POS was well prepared ahead of time, and those who rushed to comply were able to do so swiftly when they implemented our software. 

April 2021, we launched v.4 of Loanzify Mortgage Mobile App. The mobile app fully integrates with Loanzify POS, simplifying and reimagining the digital mortgage acquisition and process. It provides a simple yet intelligent consumer-facing UX with engagement tools plus powerful loan management for Loan Originators.

June 2021, we announced all-new “Personal Brand” mortgage website templates. This all-in-one website solution highlights the loan officer’s brand and supports their career growth and longevity in the industry. 

July 2021 brought a new partnership between Loanzify POS and Insellerate, delivering lead management, sales enablement, engagement, and data intelligence to help maximize the loan officer’s productivity and enhance the borrower’s digital mortgage experience.

Late summer 2021, we simultaneously released our Spanish language digital 1003 and CreditConnect, our self-pay credit pull for Loanzify POS. These breakthrough features help mortgage professionals to serve the diverse real estate market better, exponentially expand revenue opportunities and minimize the costs associated with creditworthiness analysis. 

In September 2021, we announced integration between Loanzify POS and Integra LOS, helping to facilitate the mortgage operation from origination to closing seamlessly. 

That same month, we also shared the new partnership with LeadMailbox, aiding mortgage companies to streamline and enhance their lead management process.

LenderHomePage also made waves in the industry by being featured in industry-leading news outlets, expanding its leadership team, and winning several industry awards. 

CEO Rocky Foroutan was featured in California Business Journal and BankingCIO Outlook Magazine and was awarded 2021’s Lending Luminary Award and MPA’s Housing Industry Icon in Mortgage Technology –as voted by industry peers.

LenderHomePage was also honored with MPA Magazine’s “Top Mortgage Employers 2021” award and “2021’s Top Lending Management Solution Provider Award” from BankingCIO Magazine.

Rounding out a year of big wins was bolstering our leadership team. In 2021, we welcomed Brandon Salisbury as the new Director of Sales & Marketing and Brian Dugan as the newly appointed Director of Customer Success. We also had the strategic transition of Bryan Skitt to Chief Creative Officer, where he oversaw the launch of our new Creative On Demand service.