Leadpile’s Blog

According to Bloomberg,  Mortgage applications in the U.S. declined last week, led by a slump in refinancing as borrowing costs surged.  Sales will probably remain depressed as lenders restrict credit, and concern over inflation boosts mortgage rates. The highest mortgage rates in a year may have precipitated the slump in demand. The average rate on a 30 year  fixed-rate loan rose to 6.57, the highest level since June 2007, from 6.24 percent. 

So what are Mortgage Companies to do? 

They have one of two choices… Go big in a downturn, get small and ride it out, or close their doors.

What does a Lead Marketplace do for Mortgage Companies right now? Do what they have always done…Let the demand drives the lead…simple and easy.

Thirty-year, fixed-rate mortgages edged up to 6.09 percent from 6.08 percent last week, Freddie Mac reported in its nationwide survey. It was the highest mark for 30-year mortgages since the rates hit 6.13 percent the week of March 16. The survey also showed that other types of mortgage rates declined. Rates on 15-year, fixed-rate mortgages dipped to 5.65 percent from 5.66 percent. The five-year, adjustable-rate mortgage fell to 5.51 percent from 5.62 percent. The rate on a one-year, adjustable-rate mortgage fell to 5.06 percent from 5.22 percent.

What does this mean to buyers of Mortgage Leads? Simply put, it looks like the supply will be going down in the short term. Only those mortgage Companies with excellent “sales cycles” will be able to monetize Internet lead sin a meaningful way!

Mortgage Companies…Get you closers on the line! They need to close better than ever!