Featured News

Mortgage lenders are optimistic about growth in 2016

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.”

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

JPAR® Gulf Coast Named Affiliate of the Year

JPAR® Gulf Coast, a leading real estate brokerage in Mobile, Alabama, is proud to announce…

1 hour ago


Better Homes and Gardens Real Estate LLC announced today the affiliation of Better Homes and…

5 hours ago

5 Tips for Improving Your Social Media Marketing Skills

You wouldn’t try to be a real estate agent without knowing how a mortgage works,…

5 hours ago

House Selling Checklist: 5 Things to Do When Selling Your House

While you may want a stress-free and quick house sale, selling a home can be…

5 hours ago

A Look at Some of Virginia Beach’s Best Real Estate Pros

RealtyBizNews takes a look at a few of the top real estate agents in the…

18 hours ago

Will Wooden Blinds Add Value to My Home?

Homeowners are always on the lookout for ways to increase the appraisal of their property.…

18 hours ago