5.2014 how to create a brand as the go-to mortgage professional
TRANSCRIPT
5.2014
How to Create a Brand as the GO-TO Mortgage Professional
FreddieMac
Single-Family Mortgage Originations
1 – To dominate the market of Millennial buyers who are now entering the market in record numbers
2 – To leverage the opportunity presented by the Baby Boomers who are moving-up to the house of their dreams or downsizing their primary residence and buying a second vacation/retirement home
3 – To readily identify the three most important activities they can be involved in over the next 90 days
Answer ANY & ALL questions you have regarding Bridge Builders and the opportunities it provides
Today, we will construct a unique value proposition that will allow you to stand out as the “go-to mortgage professional” with your real estate partners by giving you the tools your agents need:
HOUSEHOLDSin the U.S.*2014-2017
121MCurrent Households in the United States
3.7%Projected Growth over
the Next 3 Years
*Urban Land Institute’s 2014
Emerging Trends in Real Estate
4.48MAdditional Households to
be Formed
Are 4.2M First Time Buyers about to Buy?
Zillow 3/2014
of all renters nationwide would like to buy within the next 12 months10 %
first-time home sales, if all renters that wanted to buy actually did purchase a home in the next year
4.2M
Unemployment Rate: Millennials Ages 25-32 with a Bachelor’s Degree vs. U.S. Rate
Bureau of Labor Statistics & Pew Research
Median Annual Full Time Wage: Millennials Ages 25-32 with Bachelor’s Degree vs. U.S.Rate
Bureau of Labor Statistics & Pew Research
MILLENNIALS are ready to buy homes…
of Millennials plan to purchase a home in the future
85%increased their interest in purchasing a home in the past year as the positive
attributes of homeownership resonate with this generation
58%Pulte Group 2014
Millennials: Associate Owning A Home with…
Pulte Group 2014
NAR 2014
Percentage of Buyers by Generation
Buying is CHEAPER than renting in ALL of the 100 largest metros by an average of… 38%
Trulia 2/2014
The Increasing Cost of RentingThe Increasing Cost of Renting
Census Bureau 2014
Median Asking Rent1988-2013
Federal Reserve
OVER 30X greaterthan renters
Homeowners Net Worth…
An American Family’s
Net Worth
Federal Reserve
2014 will be the year of the repeat homebuyer
- Trulia
said they are considering selling their home in 2014
71%
have a positive outlook on housing this year
69%
have a positive outlook on the economy this year
63%
Consumer Views on Housing & Economy
Lending Tree Survey 2014
Paul Diggle Capital Economics
We are anticipating a meaningful increase in the supply of homes for
sale. The survey evidence suggests that rising prices are motivating more
owners to list their homes.
“The oldest Baby Boomer turns 68 this year, and the youngest turns 50. They are buying homes in droves as their employment situation, home values, and stock portfolios have almost fully recovered from the Great Recession.
We are seeing strong sales in this same demographic throughout the country.”
- John Burns Real Estate Consulting
Boomers are starting to move…
BH&G 2014
Baby Boomers ready to buy a 2nd home…
said they’d likely buy a second home, such as a vacation or beach house,
to use during retirement
25%
Vacation Home Sales
UP 29.7 %
NAR 2014
Thinking about moving up to the home of your dreams?
Comparison – End of 2015 Current Home Move-up Home
Current Price $300,000 $400,000Future Price (+8%) $324,000 $432,000Future Gain $24,000 $32,000
Actually Lost $8,000
Move-Up Seller
Impact of Increasing
INTEREST RATES
"One thing seems certain: we are not likely to see average
30-year fixed mortgage rates return to the historic lows
experienced in 2012."
Freddie Mac
1/2013 5/2014
Freddie MacProjected Rates
May 2014 – 2015 4Q
Freddie MacActual Rates
January 2013 – May 2014
Freddie Mac 5/2014
Date Mortgage Interest Rate* P&I**
Today $250,000 4.5 $1,266.71
End of 2015 $270,000 5.7 $1,567.08
*Average Commitment Rate per Freddie Mac **Principal and Interest Payment
$300.37Difference in Monthly Payment
Date Mortgage Interest Rate* P&I**
Today $800,000 4.5 $4,053.48
End of 2015 $864,000 5.7 $5,014.66
*Average Commitment Rate per Freddie Mac **Principal and Interest Payment
$961.18Difference in Monthly Payment
Decade Average Rate Payment1970s 8.86% $1,5891980s 12.7% $2,1661990s 8.12% $1,4842000s 6.29% $1,2372014 YTD 4.36% $997
The average 30-year fixed mortgage rates and the approximate payment for a $200,000 mortgage. Payments are principal & interest only, based on a $200,000 fully amortizing mortgage.All terms are assumed to be 30 years.
Freddie Mac 3/2014
Historic Mortgage Rates by Decade
CONFUSIONCONFUSION
FEAR
U.S. Backs Off Tight Mortgage Rules-Wall Street Journal 5/14/2014
FHA Announces Blueprint for Greater Homebuyer Access to Credit- National Association of Realtors 5/13/2014
Jumbo Loans Thrive As Other Mortgages Slip- Boston Globe 5/12/2014
They must…
Be their ‘Expert’This is a person to whom people will turn for advice on difficult or complex real estate decisions.