Millennials, Hispanics could dominate the 2016 mortgage market
The potential is great
A survey of 200 mortgage lending professionals showed that nearly tow in three mortgage lending professionals expect mortgage purchase production to increase, according to Lenders One Mortgage Barometer.
The overall anticipated increase for 2016 is set at 11%. In addition, 87% of mortgage professionals believe the mortgage purchase market will be somewhat to extremely active.
“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 Goldman, Lenders One interim chief executive officer. Lenders One is a national alliance of independent mortgage bankers, correspondent lenders.
Mortgage lender leading strategies for growth are new marketing tactics to reach new demographics, followed by offering new products, hiring sales staff and regional expansion. The survey was conducted online to a random 200 mortgage lenders, and independent research was also conducted by Market Intel Group in January.
“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,” Goldman said.
Lenders One highlighted the following groups that they believe will demonstrate the most growth opportunities this year:
- 79% said millennials, saying this group is now reaching the peak age for home buying. [Read extensive HousingWire library on millennials by clicking here.]
- 71% said Hispanics would be looking to grow mortgage share.
- 70% said non-traditional buyers in the rental and vacation home markets. This will benefit lenders who target secondary home markets.
- 68% said “boomerang buyers,” or those who can now qualify for a mortgage after undergoing a short sale, foreclosure or bankruptcy.
Lenders One is one of the largest retail mortgage origination entities in the U.S.