Call Centers Empower Lenders To Manage Overwhelming Mortgage Loan Demand

In 2020, mortgage interest rates declined to historic lows. In fact, from the week of March 19, 2020, average mortgage interest rates for the 30-year fixed-rate mortgage, 15-year fixed-rate mortgage and 5/1 adjustable-rate mortgage (ARM) have all experienced steep declines, beginning their descent at 3.65% and plummeting downward, hitting as low as 2.88% in June.

Mortgage Volume & Loan Demand Surges

Stay-at-home orders that resulted from the effects of the global pandemic have more consumers prioritizing their homes. Consumers attracted to becoming home buyers and current home owners rushed to take advantage of the financial benefits offered by low interest rates. From renters who want to transition to an environment providing more control and privacy to current homeowners interested in making renovations to improve their increased time spent indoors, the mortgage market has experienced record levels of consumer interest.

Extremely favorable interest rates also led to a surge in refinance application volume as more consumers felt enticed to change their current mortgage rates or capitalize on cash-out refinance options from their accumulated equity.

Projections For 2021 Indicate Consumer Demand Will Remain High

In a report published in June, experts from Freddie Mac suggested that mortgage interest rates will remain favorable and should not exceed an average of 3.2% in 2021. Although this is positive news for the mortgage industry, many lenders and loan originators are currently struggling to keep up with unprecedented levels of demand. As pipelines overflow with prospective refinance and purchase loan applications, many lenders are evaluating their options to expand their bandwidth, while not dramatically extending overhead and other costs. Call centers could be the ideal solution.

Call Centers Can Effectively Empower Lenders To Do What They Do Best

Working with a third-party call center could provide positive ROI for mortgage marketing and sales efforts. Ultimately, call centers empower loan originators to do more of what they typically do best: successfully close loans. Call centers are one of the most cost effective ways to generate new business and conduct fast, high-touch lead management. External call centers help lenders manage overwhelming consumer interest in mortgage loans because:

• External call center set up and management is typically easier and quicker than building an in-house call center.
• External call centers limit time wasted on prospecting, letting originators capitalize on profit-driving actions.
• External call centers enable mortgage marketers to connect with consumers when they are expressing the highest level of interest in taking action. 

In the mortgage market, every missed call is potentially a missed closing. Capitalizing on urgency and demand directly correlate to optimal conversion rates. Even though consumer demand is high right now, lenders and mortgage marketers need to keep pipelines full and connect with customers to help fuel future business. Going into 2021, it is essential for mortgage marketers to be able to reach and engage with consumers at the moment they are most ready to take action. Partnering with a third-party call center could be a powerful way lenders can take advantage of surging consumer demand for refinance and purchase loans, while not further overwhelming their staff or hiring more employees. 

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