The Fed Is Raising Interest Rates! The Mortgage Industry Is Headed For Crisis!
It’s headlines and media sentiment like this that have caused panic to set in for some in the mortgage market. Yes, the Fed is becoming a bit more hawkish but the reality for the mortgage market isn’t necessarily doom and gloom. Since the Fed began raising rates in March, many experts predict that this increase could be good news for the mortgage industry.
“Our mortgage clients are reaching out daily for strong talent to join their teams! This is a real indication that mortgage job openings remain hot and a priority! If you’re looking for mortgage talent, then reach out to Contemporary Staffing to learn more about our pipelines of fully vetted candidates!” says Lauren Behar, Account Executive, Contemporary Staffing Solutions.
Buyers Are Starting To Feel Pressure To Close A Deal
For the last several years, potential homebuyers have had the luxury of taking their time when it comes to a purchase decision. They may have felt pressure to get bids in quickly in a competitive market, but that has been their only real motivation to move on a deal; nobody was really worried about locking in a great rate because rates have been so low for so long. Now that the Fed is making moves, people are feeling a bit more of a fire under their feet to find a home and close a deal before those rates climb any higher.
Lending Standards May Loosen
There have been many creditworthy homebuyers who have been denied mortgages in the aftermath of the housing bubble of the late 2000s. Banks have kept their standards tight in an effort to hedge against the catastrophic losses of The Great Recession. However, many believe that the pendulum has swung too far, and in order to pull more home buyers into the market in the face of rising rates, they will have no choice but to loosen those restrictive standards. Additionally, higher rates will reduce the number of refinance loan applications, and lenders will need to offset that decrease by making more purchase loans.
Job Growth Is Strong
Jobs have been growing anemically over the last ten years, but in recent months, the United States has been outpacing job growth expectations. If this positive trend continues, we will see people landing higher-paying jobs and people who left the job market out of hopelessness will start to re-enter the workforce. This will put more potential home buyers into the market as confidence rises.
Is Your Staff Ready To Adjust to Rising Rates?
Banks must be prepared to handle shifts in consumer attitudes and psychology in the face of rising rates. Is your firm ready for those changes? If your bank, mortgage brokerage or investment firm is looking for talented financial pros to help you achieve your goals, contact the expert recruiters at Contemporary Staffing Solutions today. Our mortgage pipeline of candidates will impress you – CSS places nationally!