NMP - April 2017 - 16
nmp news flash
continued from page 15
Be a Trend Setter
ates are increasing, which means there is a
shift occurring from a refinance market to a
purchase market: Every time rates go up, the
industry moves to a purchase market. Fact:
They are rising again, and it might be a while
before the housing market increases enough
for another refinance boom.
The difficulty is that there is really no way to tell when
someone is "interested" in purchasing anything. It's a thought
and it cannot be read ... yet. So, the real question is: How do
you find people who are genuinely interested in purchasing a
The simple answer is ... online marketing. Search engines
use closely guarded algorithms to determine the results that
are displayed. With millions of people performing millions of
searches each day to find content on the Internet, it makes
sense that marketers want their products to be found by
potential consumers. What this does for you as a mortgage
professional is it helps find people who are genuinely
interested in purchasing a home.
The solution to this key problem is generating your own
exclusive leads. This process produces a lead that's
interested in purchasing a home, and is qualified to buy a
house. One of the best parts about this new style of
marketing is the versatility that it offers. Depending on how
you best close new business, you get a quality lead that
closes at higher rate ... producing closed loans in your area at
profitable acquisition costs.
APRIL 2017 n National Mortgage Professional Magazine n
TagQuest customer spotlight
Each month, we talk with our clients to see how their
campaigns are performing. Here's what we heard from Alfred
Valentine, a manager, and Jim Cefaratt, a senior loan officer,
with Acre Mortgage.
USDA Purchase Leads
l First month's results: 60 leads, 13 applications, with six
closed and eight more qualified loans in process.
l Response rate: A 23 percent projected closing ratio.
Highlights of the campaign
"TagQuest has the knowledge and tools to help you grow
your business," said Valentine. "The CRM is the best I've ever
seen, limiting wasted time and lost leads. TagQuest is not
looking out for their own best interest, they focus on our
growth and bottom line as well. Others would benefit from
their attention to detail and concern for providing the best
possible marketing strategies."
"The beauty of this program/campaign is that everything
comes directly to you via e-mail," said Cefaratt. "As soon as a
client clicks on to our site and fills out the very brief
questionnaire of interest, it gets sent directly to your e-mail so
you can access their information wherever you are."
TagQuest Inc. is a full-service marketing firm specializing in
marketing for the mortgage industry. Call (888) 717-8980 or
IMAGINE * INNOVATE * SUCCEED
Index at 31-Month Peak
Home prices continue to soar, as
the main index within the S&P
CoreLogic Case-Shiller Indices
has reached a new apex.
The S&P CoreLogic CaseShiller U.S. National Home Price
NSA Index, covering all nine U.S.
census divisions, reported a 5.9
percent annual gain in January,
up from 5.7 percent in December;
January's marks a 31-month high
for this index. The 10-City
Composite posted a 5.1 percent
annual increase, up from 4.8
percent the previous month,
while the 20-City Composite
reported a year-over-year gain of
5.7 percent for January, up from
5.5 percent in December.
Before factoring in a seasonal
adjustment, the National Index
posted a month-over-month gain
of 0.2 percent in January, while
the 10-City Composite posted a
0.3 percent increase and the 20City Composite reported a 0.2
percent uptick. After the seasonal
adjustment, the National Index
recorded a 0.6 percent monthover-month increase, while both
the 10-City and 20-City
Composites each reported a 0.9
increase. Thirteen of the 20 cities
tracked in the indices reported
increases in January before
seasonal adjustment; after
seasonal adjustment, 19 cities
saw prices rise.
"Housing and home prices
continue on a generally positive
upward trend," said David M.
Blitzer, managing director and
chairman of the Index Committee
at S&P Dow Jones Indices. "The
recent action by the Federal
Reserve raising the target for the
Fed funds rate by a quarter
percentage point is expected to
add less than a quarter
percentage point to mortgage
rates in the near future. Given the
market's current strength and the
economy, the small increase in
interest rates isn't expected to
dampen home buying. If we see
three or four additional increases
this year, rising mortgage rates
could become concern."
acknowledged that what goes up
will eventually have to come
"While prices vary month-tomonth and across the country,
the national price trend has been
positive since the first quarter of
2012. In February, the inventory
of homes in the market
represented 3.7 months of sales,
lower than the long-term average
of six months," he continued.
"Tight supplies and rising prices
may be deterring some people
from trading up to a larger house,
further aggravating supplies
because fewer people are selling
their homes. The prices also hurt
affordability as higher prices and
mortgage rates shrink the number
of households that can afford to
buy at current price levels. At
some point, this process will
force prices to level off and
decline. However we don't
appear to be there yet."
Is the Housing Market Living
Up to Its Potential?
Potential existing-home sales
decreased to a 5.7 million
seasonally adjusted, annualized
rate (SAAR) in February while the
market potential for existinghome sales fell by 0.5 percent
compared January, a 28,000
(SAAR) sales decline, according
to data released by First
American Financial Corp.
First American noted that the
potential existing-home sales
level is now 658,000 (SAAR) or
11.5 percent below the prerecession peak of market
potential from July 2005. The
company also stated that the
market for existing-home sales is
underperforming its potential by
2.5 percent or an estimated
142,000 (SAAR) of sales; last
underperformance gap was 4.5
percent or 260,000 (SAAR) sales.
"Steady income and job
growth combined with increased
building permit activity has
increased the market potential for
home sales on an annual basis,"
said Mark Fleming, chief
economist at First American.
"Demand from Millennials and
continued on page 22