Millennials, Hispanics and Boomerang Buyers Expected to Drive the Market
According to a new mortgage industry survey called the Lenders One Mortgage Barometer, nearly two in three mortgage lending professionals (62 percent) expect mortgage purchase production to increase, with an overall average anticipated increase of 11 percent in 2016. Also, 87 percent believe the mortgage purchase market will be somewhat to extremely active.
Mortgage lenders' leading strategies for growth are new marketing tactics to reach new demographics (60 percent), followed by offering new products (42 percent), hiring sales staff (40 percent) and regional expansion (36 percent).
Mortgage Lenders Identify Diverse Growth Opportunities
Lenders highlighted specific groups that will present the best growth opportunities this year:
- Nearly four in five (79 percent) identified Millennials as this age group begins to approach the peak age for home buying
- 71 percent named Hispanics
- 70 percent identified non-traditional buyers in the rental and vacation home markets, which may bode well for lenders targeting strong secondary home markets
- 68 percent named "boomerang buyers," those who can now qualify for a mortgage after undergoing a short sale, foreclosure or bankruptcy
"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," further commented Daniel Goldman. "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."