Posted by Ronnie_WA on 1/14/11 12:52pm
Msg #368665
Mtg Bankers Assoc projects 66% decline in refis for 2011
Here's an excerpt from their article with gloomy news for us:
After mortgage rates spiked in November and December, most companies have already experienced a sharp drop off in production. Making matters worse, some economic forecasters are predicting further depreciation of real estate values in 2011. With the economy said to be picking up steam, eventually the Federal Reserve will start ratcheting up short term rates. All these actions could have a substantially negative impact on mortgage origination volumes in 2011 and 2012. The MBA is forecasting a 36% drop in total originations, with purchase volume going up 30% but refinance originations shrinking by a scary 66%.
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Reply by MW/VA on 1/14/11 1:43pm
Msg #368682
The money folks all seem to be selling gloom & doom. Try to remember that the news manipulates the markets to be exactly where they want them to be!!!! LOL
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Reply by Ronnie_WA on 1/14/11 2:47pm
Msg #368689
The association gets their data directly from the banks.
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Reply by OR on 1/14/11 4:05pm
Msg #368699
I was looking at that too. I was wondering how to market now. Do you have any ideas. Do you think that we will get the new mortgages to sign?
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Reply by OR on 1/14/11 4:06pm
Msg #368700
Re: I should add
I should add because most of our busniss on this site is Refi's
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Reply by Ronnie_WA on 1/14/11 5:13pm
Msg #368707
If their projections are correct, and I believe they are, it will be impossible to stay in business relying on refis. I think we notaries have all trimmed our fees as low as we can possibly go - no fat left. Therefore, my marketing will be targeting the RE agents and loan officers to use our services as a way to distinguish themselves from their peers. People love our services and hate going in to the title companies. It is a way for the RE agent to provide that special touch that will result in return business and referals which are critical to the agent/LO survival. The title companies have no further room to trim their fees either.
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