We've all seen mortgage rates come down in the past few months, and that's great. It's no surprise that refinances are coming out of the woodwork for those with 4.75%+ rates. The Fed announced a 0.25% rate cut and we all know doesn't mean mortgage rates drop the same.. but there is something exciting that this does for your marketing efforts.
When the news says "bla bla bla .. lower interest rates", homeowners look into refinancing at a much higher response rate. We've seen this many times over the past 10 years.
There were already millions of homeowners with interest rates high enough that they could benefit from a refinance. Margin spreads between fair and great credit borrowers have been generating perpetual refinance opportunities. When a consumer's credit score migrates higher after buying a home the offer rates at their improved credit score can be 0.50% better without a change in market rates.
The Fed's news about lowering interest rates is just the noise we needed to push consumers to take action. Check out ourPredictive Marketing alertsto automate marketing to homeowners that are in the sweet spot for an interest rate reduction. There is a tsunami of refinance transactions coming our way. If you aren't monitoring your database for opportunities, now is the time to get started with Database Marketing Alerts.