In Q3 2018, two groups of older consumers entered the list of top consumer segments for the purchase market, according to the Q3 2018 Mortgage Consumer Profile Report, published by Best Rate Referrals. With these two groups added to the list, half of the top 10 consumer segments for the purchase market were comprised of older or retired borrowers.
Top 10 Consumer Segments Inquiring About Purchase Loans in Q3 2018:
- New in Q3: Affluent, rural, older home owners with/without children
- New in Q3: High-income, suburban, older renters without children
- Affluent, city, older home owners/renters with/without children
- High-income, suburban, retired home owners/renters without children
- Moderate-income, rural, older renters without children
- Affluent, suburban, middle-aged home owners/renters without children
- Affluent, suburban, middle-aged renters with children
- Moderate-income, suburban, middle-aged renters with children
- Moderate-income, suburban, younger renters with/without children
- Low-income, city, younger renters with children
Conservative, Older Consumer Segment Shifts Focus from Just Refinance to Refinance or Purchase
In Q2 2018, a consumer segment defined as “affluent, rural, older home owners with/without children” was a top segment for refinance mortgages. In Q3, this segment joined the list of top segments for purchase mortgages while remaining on the top segment list for refinance mortgages.
With an average age of 58 and an average household income of $154,767, this consumer segment has disposable income that allows them to participate in recreational activities, including camping, riding ATVs, target shooting and boating. This consumer segment holds conservative values. They are avid readers and likely to contribute to charities. Although they are saving for their children’s college tuition, they also are likely to own multiple vehicles.
This conservative, older consumer segment is regularly online ― especially in the evenings during the week. Their use of social media is slightly above average and focused on Facebook. TV viewership is average for this consumer segment, but magazine consumption is high, with Southern Living, Smithsonian, American Rifleman, Economist and Weight Watchers as the highest-indexing periodicals.
This consumer segment enjoys domestic travel. Many individuals within this segment own vacation homes, which may be another reason they rank high for purchase mortgage inquiries.
High-Income, Suburban, Older Renters Inquire About Purchase & Reverse Mortgages
A consumer segment of high-income, suburban, older renters climbed to the top list of segments for both purchase and reverse mortgage inquiries in Q3 2018. While this initially seems to be a confusing segment for reverse mortgages, their home ownership lies at 15%, which gives opportunity for the reverse product. There may also be individuals from this segment inquiring about reverse mortgages without understanding the home ownership requirements.
With an average age of 62.6 and an average household income of $89,969, this segment consists of individuals with relatively high consumer confidence even though they frequently shop at wholesale retailers and price clubs. They index high for entertainment, including movies, TV and magazines. Favorites shows include Dateline, Pioneer Woman, Law & Order: SVU, World Series of Poker and ABC World News. Top magazine choices include National Geographic, Vanity Fair, Harper’s Bazaar, Vogue and Sunset. This consumer segment is online regularly, but their social media use is limited.
Home and car maintenance is important for this consumer segment as they like to travel. This audience also claims to pay attention to advertising, making them a potentially smart audience to engage with to grow your purchase mortgage base.
For additional details regarding top consumer segments for the mortgage industry, download the Q3 2018 Mortgage Consumer Profile Report.
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About the AuthorMore Content by Raymond Bartreau