Rates are dropping and may continue to do so... this is a great piece of news for you to share with clients and Realtors. I read an excellent article stating the case for a possible significant rate decline.
"The Federal Reserve said Tuesday morning it would spend $600 billion in coming quarters to buy the bonds and mortgage-backed securities issued or guaranteed by Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500). The move, the Fed said, aims "to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally."
...the government will need to bring the rate down into that range to create demand for mortgage refinancing, and to get current homeowners who'd like more room or a better location to think about making a change.Larkin notes that homeowners who took advantage of the last refinancing opportunity in January, when rates on a 30-year fixed mortgage dropped briefly to around 5.5%, won't be tempted to refinance again - thereby incurring additional fees and in many cases having their houses assessed at lower values - till rates go substantially lower."
Click here to read the article in full. Share this article with your Realtors - potentially great news for their business!
IF this government action works (and that remains to be seen) you just may have a bit more job security moving into 2009. Here are some marketing ideas for you:
- Send an email to your database with a quote from this article. Let them know you are monitoring rates and can answer any questions they may have.
Create a flyer or letter to send to your database with information on rates and what is happening in the market.
Offer to do a 5 minute presentation at Realtor sales meetings on current marketing conditions and how they can sell more homes by helping their clients to have more confidence in the market. Let them use your email/flyer/letter from above as a template for a marketing piece to their database.
Contact local radio stations and ask if you can do a question and answer segment on this topic.