This article discusses the Federal Reserve’s federal funds rate and the upcoming reductions we may see based on the FOMC’s recent projections. This is good news for the mortgage industry, as lower interest rates often drive more activity.  

By now, you have likely heard that the Federal Reserve recently reduced the federal funds rate by 50 basis points, bringing the target rate between 4.75% and 5.00%. When the federal funds rate falls, other interest rates tend to follow. Since the mid-September announcement, some mortgage interest rates have bounced slightly down and even up a bit. Financial experts claim more adjustments in the Fed’s rate may be needed to create a bullish environment in the mortgage industry over the next few years. But how big of an adjustment is likely? And when? 

When the Fed will next meet to discuss the federal funds rate

The federal funds rate is set in conjunction with the Federal Reserve’s Federal Open Market Committee (FOMC). The committee is scheduled to meet two more times before the end of 2024. The December 17-18 meeting is associated with a Summary of Economic Projections (more on this in a moment). In 2025, similar such meetings will be held on March 18-19, June 17-18, September 16-17, and December 9-10. 

What the FOMC’s Summary of Economic Projections tells us

The Summary of Economic Projections gives us a glance into the FOMC’s thinking on the economy and the path for the federal funds rate. Federal Reserve Board members and Federal Reserve Bank presidents submit their projected likely outcomes for key economic measures (i.e., GDP growth, unemployment rate, inflation) as well as the trend for the federal funds rate. These projections cover the current year, each of the next three years, and a longer run estimate. Updated four times per year, they are based on information available at the time and members’ assessment of appropriate monetary policy. While unforeseen shocks to the economy could happen and change the outcomes of these measures, these figures give us insights on likely trends. 

FOMC’s most recent projections for the federal funds rate

So, back to the good news at hand. The FOMC’s most recent projections suggest the federal funds rate will continue to be lowered over the next couple of years. FOMC members projected the federal funds rate will be:

• Reduced to a median of 4.4% by the end of 2024, well under the current target range of 4.75-5.00%. 
• Decreased one full percentage to a median of 3.4% by the end of 2025
• Further lowered 50 basis points to a median of 2.9% by 2026 year end.

What this means for the mortgage industry

While no estimates come with 100% certainty, it is clear that the FOMC is eyeing some significant downward shifts in the federal funds rate. Some mortgage interest rates will likely follow this trend, creating a strong demand for home purchases and refinancing.

As a general rule, homeowners often consider refinancing when they can reduce their interest rate by 2%. It may even make sense with a downward adjustment of 1%. The federal funds rate was just over 5.3% during the early months of 2024. The FOMC’s newest projections suggest that we may see an approximate 1% decrease in 2024 (4.4%) and a 2% reduction by the end of 2025 (3.4%). If mortgage rates lower, and it is likely they will, we should see an uptick in refinancing in 2025.

Individuals looking to purchase a home will also be encouraged by lowering interest rates, which have been running above 6%. More home sellers will likely enter the market too, creating more supply to meet the demand. More than 6 million homes were sold in the U.S. in 2016 and again in 2017 when average mortgage rates were below 4%. When the average mortgage rates climbed to more than 6% in 2023, the number of homes sold dipped to just over 4 million. A 2%-3% change in mortgage rates can clearly make a huge difference. Forecasts for 2025 suggest a recovery is in the making, with expectations of 5.3 million homes sold in the U.S. Good news for the mortgage industry.

Get ready for the recovery

To ensure mortgage companies gain traction in this recovery, they will need to identify current and potential homeowners who are interested in purchasing a home or refinancing. This can take significant time and effort. Mortgage companies who gain support in this area can fully focus their sales teams on closing deals. Aligning with a reputable leads provider such as Reliance Leads can help you effectively meet your sales expectations.

If you would like more information on how you can grow your mortgage sales during this recovery, give Reliance Leads a call at 1-516-727-2849 or visit our website at http://relianceleads.com.

The post Federal Funds Rate Projections Are Good News For The Mortgage Industry appeared first on Reliance Leads.

Firms are usually happy with a $100 cost per deal. But few are aware that the right-aged leads can close at $50 or less. While half the equation is great-aged mortgage leads to only close to 15% or usually even lower. This means 85% to 95% plus of these people still need help! With heavy competition and misinformation about the benefits of mortgages, consumers may clam up thereby not buying from the first salesperson they spoke with. Moreso, they might not even know about tax credits for mortgage systems. Maybe the first salesperson was too pushy after his tenth cup of espresso, or the consumer had their “Sales” shielded up – knowing it was a sales call.

Therefore, the quality control and customer service type approach works. When investigating a consumer’s previous experience, first off, your staff can get to the real reason why they didn’t buy within the first minutes of the call. Use this ammo to help the consumer solve their needs and build trust.

Step 1: Establish A Quality Control Call

Make this a quality control call – not a sales call. Embrace the part of “Quality Control ” with a smile and voice inflection – high-pitched like you just inhaled helium! If the consumer attempts to hang up – be sure to establish that you are just looking for information and trying to help.

“Good Morning/Afternoon/Evening is this (NAME)? Hey NAME this is (REP) from the Quality Control Department of (Company Name). It looks like you spoke to someone a while back about a (refinance, car loan, or purchase of some kind). However, I didn’t see you sign up with us, possibly due to credit issues or some sort. Could you tell us more about this so that we can suggest some ways on fixing and improving your credit standing?

Step 2: Interview Aged Mortgage Leads For Information

Above all, get the consumer talking about what happened. Was the previous sales rep able to answer all of their questions? Was he knowledgeable? In short, what were they trying to do back then? Consequently, did they get it accomplished?

Use this ammo to help the consumer solve their needs and build trust by saving them.

If the response is “Poor Credit”

“I’m glad I called you. I’m (name) from the Quality Control Department. As much as I have access to products and programs that others don’t have access to, we also have a way to fix your credit status and save you thousands of dollars in the next several years from high-interest rates.”

If the response is “Accomplished” 

(This is great! Let’s still go for it.)

“I’m happy to hear that, and how did it go, did you get the payment you were looking for?”

“Do you feel your credit may have impacted or made this payment higher?”

Interview them!

Step3: Automation Solutions

Calling aged Mortgage leads is all about automation.

Suggested Dialer Systems:

• www.phoneburner.com
• https://vanillasoft.com/

Suggested Texting Systems:

• Google Voice
• www.salesmessage.com
• www.hitemupapp.com

Sample Mortgage Texting Script

DISCLAIMER: This is for information purposes only. We are not legal representatives. Please check with your legal counsel to ensure texting fits into your overall marketing plan

“Hello, this is John, and I’m reaching out regarding some inquiries of people asking for help on their mortgage but were potentially impacted by low credits. And we know it’s kind of annoying when people call. Still in the Market? If they answer yes, get them to talk further.

Have you already started the process to fix your mortgage? Does checking your credit score make you nervous? We know credit can feel intimidating—but knowing how your score is calculated will help you understand how to maintain or even improve it. We’ll break down what determines a good credit score, and what factors into that figure.  In addition, we’ll teach how to get that elusive perfect credit score—or at least the highest credit score possible.

The post Aged Mortgage Leads – Suggested Scripting #2 appeared first on Reliance Leads.

Even when interest rates are low and lenders are approving subprime loans like it’s 2005, real-time Mortgage leads only close at 15%….often it’s even lower. This means 85%+ of these people still haven’t been helped!  Homeowners are a hot commodity as they likely have more savings/cash on hand for other salespeople targeting them like the gardener, pool man, remodeling contractors, solar salesmen, and the weird guy selling steaks out of a cooler.

There are many reasons the consumer did not go through with a refinance: the first rep may have been a single lender with too high of a rate, maybe they were too pushy after his 10th cup of espresso, or they were out of the cusp of approval because of poor credit.

That’s why a quality control/service-focused approach works. When investigating a consumer’s previous experience first, your staff can get to the real reason they didn’t buy within the first minute of the call. You can quickly pivot from a random salesperson to a trusted/caring advisor.

Step 1: Establish A Quality Control Call

Make this a quality control call – Not a sales call. Embrace the part of “Quality Control ” with a smile and voice inflection – high-pitched like you’re the creepy guy from Family Guy.! If the consumer attempts to hang up – be sure to establish there’s no pressure and that you’re just trying to help.

“Good Morning/Afternoon/Evening is this (NAME)? Hey NAME this is (REP) in the quality control department of (Mortgage Lending For You) …..It looks like you spoke to someone a while back about refinancing your home…..I didn’t see that you were working with us yet .and I just wanted to see what might’ve gone wrong and that you got all the correct information – I may be able to get you a better rate and lower payment, do you have a few minutes?

“What is this about?” – “Who are you?” – “Did I speak with you? Are you in a call center in Pakistan trying to scam me?”

“I’m not trying to sell you anything…it looks like you spoke to SOMEONE about a Refinance…but I JUST want to make sure you got the best rate and payment available. Can you tell me what happened? 

Step 2: Interview for Information

Get the mortgage lead to talk about what happened. Was the previous sales rep able to answer all of their questions? Was he knowledgeable? Why did they want a refinance in the first place?

If the response is “Did not accomplish”

“I’m glad I called you – in the quality control department I have access to additional lenders…would you have interest in lowering your mortgage payment + rate?”

GO INTO PITCH

If the response is “Accomplished” 

“I’m happy to hear that. But what’s your current mortgage rate? I just want to make sure you have the best possible lender. We work with multiple banks that will fight for your business!”

INTERVIEW ON PROGRAM

Suggested Dialer Systems for Automation: 

• www.phoneburner.com
• www.convoso.com/predictive-dialer

Sample Mortgage Leads texting Script:

This is for information only. We are not legal representatives. Please check with your legal counsel to ensure texting fits into your overall marketing plan. 

Suggested Systems for Automation: 

• Google Voice
• www.salesmessage.com
• www.hitemupapp.com

“Hi is this <name>?”

Yes, who is this? 

“This is John, I was reaching out to some older inquiries of people asking for lower mortgage payments. I know it’s annoying when people call

“Do you have a few minutes for a benefit analysis?”

• Response

Send a digital business card, “This is me”

(Get them talking) – What carrier do you have now, are you feeling like the cost is too much Also, do you have dental + vision coverage?? 

The post Mortgage – Stand Alone Form Fill Approach appeared first on Reliance Leads.

Are you thinking about buying aged mortgage leads? You’re on the right track if you’re doing the research and shopping around. We know from experience that investing in mortgage leads can be one of your most successful lead-generation strategies. However, you should consider a few things before you buy mortgage leads from just anywhere. Especially from vendors overseas promising rainbows and butterflies with every lead.

Things To Consider When Buying Mortgage Leads

If your business seems like it’s running low on prospects, or you’re looking to scale and grow this year, now is as good a time as ever to look into buying mortgage leads (because your competition sure is.) Even in this competitive market, the right leads can help you jumpstart your marketing strategy. Also in any market, salespeople burn & throw away leads like the secretary’s Brussels sprouts in the office microwave.

So whether you’re looking to buy aged mortgage leads, shared leads, or exclusive leads, read our guide below before you take the plunge.

Pricing

Let’s discuss pricing first. Many companies don’t like to disclose their prices, but we know that pricing does matter. There’s a wide range of costs per lead when it comes to mortgage leads, but more expensive doesn’t mean better! The Ferrari is ultimately a lot more expensive to maintain than the 1990 Ford Pinto. That still gets you from Point A to Point B…it just may not get as many ladies eyeballing you. Aged Mortgage Leads are an investment, but you don’t want to spend your entire budget; you want to find the sweet spot so that you can get the best ROI possible. In addition, it’s a great idea to test multiple vendors/sources and track performance. 

Lead Source

Do you know where your leads are coming from? We think that the source of your mortgage leads is essential. Find out where the lead company you’re using sources the leads you’re buying. Some firms use leads that have already been resold countless times. Mix good leads with hot garbage, while others get their leads directly from mortgage industry giants.

Lead Quality

Everyone wants quality aged mortgage leads! You want a list that has all the right information. And is preferably generated by a real person who is actually shopping for a mortgage – not overseas bot farms or craigslist ads. Quality lead companies like ours will ensure they do their due diligence on your behalf, testing in advance so you don’t get burned by a vendor using your dollars to advance their other clients! In addition that vetting goes to compliance as well. A simple mistype/paste of shady data could land you in hot water with angry reviews and at worst lawsuits!

Lead Quantity Aged Mortgage leads

You’ve heard that quality is better than quantity. But in this competitive market, quantity also significantly impacts how successful your mortgage lead investment will be. All lead pools will vary; some will have higher close rates than others. However, if your collection of leads starts small, the chance that you’ll have a low close rate will increase. Don’t be the guy that calls 5 leads and screams at your lead vendor that these are terrible! It can take sometimes up to 20 calls to reach a consumer. Your marketing methods should be omni channel as well – SMS, e-mail, carrier pigeons, and your salespeople sending flowers and chocolates…just kidding…kind of.

Small-batch lead lists are also more expensive. It’s cheaper to buy quality leads in bulk that have a better ROI.

Lead Formats

No matter the size of your business, if you’re working with any considerable amount of leads, it pays to use customer relationship management software (CRM). When you’re considering buying mortgage leads, make sure the lead company you work with will be able to deliver your list in a format that works with your chosen CRM. CSV is a popular format that works in Excel and many CRMs, so double-check that this format is available. Once you’ve established a relationship with your vendor, you could consider an API/host & post it into your CRM/dialer.

Discounts or Surcharges

As we mentioned above with pricing, it pays to do a little research and see if any companies are offering discounts or adding surcharges. Take the time to compare the number of leads you’re getting and their exclusivity before you buy. Many companies provide large discounts for buying leads in bulk. But this might not be the best option for you if you have a small company and don’t have the resources to go through them quickly. 

Also, keep in mind that some firms charge more per lead if you use filters while shopping around. Over-filtering might remove prospects who could still qualify or be interested. Typos can happen to anyone; I often make them myself because my fingers are usually covered in Cheeto dust.

Filtering Aged Mortgage Leads

Though they might charge you for using filtering options, it can be worth the extra price to find the prospects you can serve best. Filtering options allow you to narrow down your search to a home purchase, reverse mortgages, refinances, who has a pet tiger and lives in Alaska, and more. Depending on what you need, you might choose to focus on aged mortgage leads in a particular zip code or a particular loan-to-value ratio cut-off.

Would filter leads make the most sense for your business? Is the price worth it to get high-quality leads that could lead to a higher percentage of close rates? These are questions to ask as you’re browsing through lead providers.

Exclusive or Nonexclusive

Another important factor to consider is whether you need exclusive leads or nonexclusive leads (also known as shared leads). Exclusive means that the particular lead included on the list hasn’t been sold to any other sales professional. However, we think it’s important to note that it doesn’t mean that the customer hasn’t filled out other leads request forms.

A terrifying thing about Facebook ads is once a consumer fills out a Mortgage form for example – Facebook actually shows more of the same ad type/as your competitors!!!! Though exclusive leads sound like the most ideal option for any mortgage provider, they can be costly, which could hurt your ROI. You can get ahead of the competition by making sure your caller IDs don’t say “Spam Likely”. Monitor your salespeople’s calls on occasion. Encourage gentle scripting that doesn’t make your reps sound like they’re selling used Kias at a 39% APR while they smoke a pack of Marlboros.

Though nonexclusive leads often get a bad reputation, the firm that is willing to capitalize on them can see great success rates. In addition, shared leads don’t get the attention they need after the first week or month, which means that persistent sales pros have an opportunity to prove their skills. Simply put, money is left on the table!

Real-Time or Aged Mortgage Leads

The last thing you should consider when buying mortgage leads is to consider the pros and cons of real-time and aged leads. Though most people will pay high-dollar for fresh leads because the opportunity seems ripe. But it can also result in more competition and higher prices. Moreover, many first-time mortgage shoppers may not be ready to buy after your initial phone call. Your company’s frequent phone calls might also be tiring them out, and the 20 other forms they’ve filled out. It might take a lot of nurturing to make the sale. 

However, you’ll likely pay less for the list with aged mortgage leads, meaning you get more bang for your buck and a potentially higher close rate and lower CPA. As these leads are probably right on the verge of choosing their mortgage lender. 

Conclusion

Whether you’re looking to build a new business or supplement your existing sales, buying mortgage leads can make all the difference. But just like with any investment opportunity, it pays to do a little research. And consider what is the most important for your own lead generation strategy. With the right bulk order of high-quality aged mortgage leads, you can increase your ROI and grow your business (provided you have an efficient method and team that can efficiently sort through them). Fresh or exclusive leads can also be a good option, depending on what you’re looking for. 

Start today with high-quality leads from Reliance Leads to grow your business in mortgage, insurance, residential solar, and more. We offer thousands of sortable leads to help you reach more customers.

We’ve made it our mission to offer high-quality, exclusive leads so that you’ll come back again and again. Reliance Leads strives for repeat business, not taking your money and running to the Bahamas. Let us help you eliminate the hassle and the legwork of finding the perfect leads. Instead, choose one of our lists that is primed and ready to generate sales. Get started here.

The post Buy Aged Mortgage Leads appeared first on Reliance Leads.