Like all of you, the Colorado Title Services team is keeping a close eye on all the latest news and speculation on the future of the housing market. Unlike in 2008, we are not in a housing bubble. By some estimates the U.S. is short over a million housing units.
Since the Federal Reserve raised interest rates in March, for the first time since 2018, the average 30-year fixed-rate mortgage rate has surged from 3.2% to 6.38% in June. While this may be cause for alarm for real estate professionals, it’s not time to panic. It’s time to plan! Today’s mortgage interest rates are still not unreasonable when compared to the historic interest rates as high as 18% in the 1980’s.
Many of you are already doing a fantastic job building your brand, but now it’s time to take your efforts even further. As the number of buyers tightens, your marketing needs to be laser focused to attract serious buyers capable of completing a purchase in this new paradigm. Remember, cash buyers are not affected by the higher interest rate.
The Mortgage Bankers Association expects mortgage rates to decline to 4.4% by 2024. If your buyer were to get a 4% adjustable rate mortgage for the purchase with a 5 to 7-year rate adjustment, this would give them the option to refinance into a lower fixed rate mortgage sometime before the rate adjusts. We are already seeing some buyers use adjustable rate mortgages to get a lower interest rate for their initial purchase loan.
Here are three steps you can take this week to stay at the top of your game:
Update Your Website
Make sure you don’t have any broken links or outdated information on your website. This will hurt you when people are searching for your services on Google. Also, make sure it is mobile-friendly. Millennials make up 43% of homebuyers – the most of any generation – and they are house hunting on their phones. Have examples of how they can afford owning verses renting. Show pictures of how great the Western Slope is as a place to call home or have a second home to escape the hustle and bustle of the city.
Engage on Social Media
Those same millennials are consistently distracted from their house-hunting by Twitter or TikTok. Use it to your advantage! Social media is a great way to connect with your consumers and can’t be ignored. Whatever you do, though, be consistent. Don’t just send one tweet and never look back. Write up a schedule to remind yourself to log on and interact with your consumers at least once a week.
Let your satisfied customers share the love for you! 72% of people say positive reviews and testimonials make them trust a business more. You probably have hundreds of happy clients who would love to talk about their experiences with you. They will be honored to be featured on your website or social media page showing off your hard work!
No matter what the future may bring, the CTS team is ready to partner with you to complete your transactions. With over 75 years in the title industry, we have the experience you need to weather any storm. Reach out to CTS today and let our staff lend their knowledge and expertise to any of your title or closing needs.