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Many industry experts have been making predictions as to where they think the mortgage industry will go in 2023, but there are 3 things they agree on: 

• Rates will take a bit to level out, but they will level out this year.
• Home buying will not slow anytime soon! 
• Maintaining a refi business is key to long term success. 

There are many reasons industry experts believe rates will level out, but the most common is: as inflation slows, rates will drop. There are many articles that cover this topic, but one that summarizes this really well is an article by Forbes. They state: 

“Rates for home loans are still caught in a tug-of-war between high inflation and the Federal Reserve’s actions to restrain inflation, which often indirectly pushes long-term mortgage rates higher. But rates (finally) seem to be trending downward over the long term.”

A number of other articles address this, but I think Forbes states it perfectly. Everything is impacted by inflation, but mortgages are drastically impacted by inflation and the decisions made to help lower inflation. Once inflation balances out, rates will immediately begin to drop. 

The US News highlights that conditions should improve once policymakers are “done hiking rates”, which many are expecting to happen the first ½ of 2023. 

January already started off strong, with rates the lowest they had been in months! There was also an increase in inventory. According to NMP this helped give buyers the upper hand for the first time in years! The better position the buyers are in, the more likely they are to move forward with a purchase.

This brings us to the next agreement, home buying will not slow down anytime soon. There has been a decline in homes purchased, but as houses stay on the market, and the price comes down, more and more people are able to get out of renting and into a home. 

MPA magazine mentions that they expect the “purchase market to remain strong”. Sellers and mortgage companies are getting creative with ways to get buys in a house. Buy down loans, and other first time home buying credits, and a variety of other offerings, are keeping people buying. 

Finally, experts agree that building a strong refi business, and keeping in touch with those people, should be top priority. 

Housing Wire and MPA Magazine both emphasize the importance of a strong refi business. Refi business was such a big part of the last couple of years, and those that stayed in contact with previous borrowers really reaped the benefits. 

Alex Elezaj with United Wholesale Mortgage talked with MPA Magazine about the importance of giving the borrower a great experience and implement technology to make that process memorable. He follows that up with stating: 

“These are the things that allow the borrower to have a great experience with the loan office – make sure they’re staying in touch for the next refi opportunity and that ultimately flows to the real estate agents.”

One of the biggest takeaways from Elezaj’s conversation with MPA Magazine is the importance of implementing technology to help grow your refi and referral business. This is one thing that any LO in 2023 could invest in and really see that ROI. 

Many LOs spend hours updating borrowers and realtors throughout the loan process. They also spend a lot of time explaining what the next steps will be (especially to first time home buyers), and what the borrower needs to do to prepare to close. That time should and could be spent on closing more deals if they invested in some key pieces of technology. 

In comes, Aduvo! Aduvo can help LOs implement real time status updates to any contact, at the simple touch of a button. As the loan is being updated in the loan origination system, Aduvo is firing off those updates. Whether it’s a text to a realtor, or an email to the borrower letting them know what they need to gather or complete in the next step of the process, Aduvo is taking care of all of that! 

The best part? Aduvo has out of the box, ready to turn on, content that allows the LO to turn the campaign on, and move on to closing all of the new refi and referral business they are generating! 

Interested in learning more? You can take a look at some of our loan status alert content here, or sign up for a quick 15 minute demo with our team! You can also give us a call at 480-864-4272 or email us at sales@aduvo.com