Mortgages lenders have voiced their confidence that the industry is set to boom this year, with a big jump in the number of mortgage purchases expected. That was the takeaway from a new survey conducted by Lenders One, a national alliance of independent mortgage bankers, correspondent lenders and suppliers of mortgage products and services.
Called the Lenders One Mortgage Barometer, the survey showed that almost two thirds of mortgage lenders and mortgage professionals (62 percent) say they expect mortgage purchase production to increase this year. The average expected increase in mortgages is 11 percent, while a stunning 87 percent of respondents said they expect this year’s mortgage purchase market to be either “somewhat” or “extremely” active.
With such expected demand, mortgage lenders are leaning on a number of new strategies to reach new homebuyers. The vast majority (60 percent) say they’ll adopt new marketing tactics aimed at reaching new demographics, while 42 percent plan to come up with new products. Another 40 percent plan to hire new sales staff, while 36 percent said a regional expansion was also on their agenda.
2016 mortgage growth opportunities
The survey also asked lenders where they see their biggest growth opportunities for the year ahead, and there was no surprise to see that almost four in five (79 percent) saw millenials as the main opportunity, as this generation approaches the peak age for home buying.
Elsewhere, some 71 percent of lenders said they hope to target Hispanics, while another 70 percent said non-traditional buyers in the rental and vacation home markets were also a good target. Finally, so called “boomerang buyers”, those people who are able to qualify for a mortgage following a short sale or foreclosure, are a target for 68 percent of lenders surveyed.
“The strong confidence levels we’re seeing among lenders highlight the continued bounce back from one of the most challenging real estate and lending environments in U.S. history,” said Daniel T. Goldman, Interim Chief Executive Officer, Lenders One. “In an environment where lenders can once again focus on business growth initiatives, it will be more important than ever for mortgage professionals to have access to the tools and ongoing training they need to capitalize on these emerging trends.”