Now is not the time for panic, industry veteran urges
For loan originators feeling the weight of elevated mortgage rates in the current market, it’s a critical question: what are the best ways to stay afloat and position for success in challenging times?
A veteran broker told Mortgage Professional America focusing on the fundamentals – and on what you can control – is the best way to move forward even when rising rates push potential clients to the sidelines.
One of the keys to positioning for stronger times in the future is building a pipeline of referral business. For Yury Shraybman (pictured top) of the Pennsylvania-based Innovative Mortgage Brokers, hard work in developing such a network over the years has been essential in thriving even in a high0-rate environment.
“A lot of it is pretty much the referral business,” he said. “I’ve been communicating more with my past clients and referral partners. I think the most important thing that I have going is the service.
“My referral partners and past clients have been extremely happy with the services that I have provided to them in the past and because of that, they keep on recommending me to their friends, family members, and clients.”
Average 30-year fixed interest rates have recently soared above 7% as bond market unease continues to push Treasuries higher. The Mortgage Bankers Association (MBA) said rates jumped to 7.49% last week, deepening strain in the mortgage market and again weakening demand for both purchase and refinance applications.
Brokers may have no control over rate movement, but Shraybman sees the key as redirecting energy toward the things that actually move the needle for their business. “With the rates, that’s obviously… totally uncontrollable,” he said.
“I just try to concentrate on things that I can control, which is having more conversations and providing the level of service that I’ve always been providing. And I feel like the deals will come.”
Interest rates not the be-all and end-all, broker argues
It’s also worth emphasizing, he said, that rate movement isn’t a huge consideration for many buyers who are set on a move. Shraybman highlighted his own experience purchasing his current home three years ago at a 7% interest rate, when the objective of purchasing a property far outweighed the question of whether the rate began with a six- or seven-handle.
“The interest rates were never a thought in my head,” he said. “I was more concerned with the affordability factor, but the affordability factor for me was in regards to the price – because the price is the one thing that you can control.”
Buyers who can currently afford a home but are on the fence about whether to wait for a potential rate drop, he said, could have an opening now that might not be there when the market swings. “A buyer definitely has an advantage of being able to put in offers in their favor – maybe a little bit lower price, maybe asking for some seller concessions,” he said.
That’s a big contrast to the COVID-era market, when it was common across many regions for bidders to submit multiple offers on different properties, competing against cash buyers and aggressive overbidding, before finally securing a deal.
The message to other brokers: Stick it out
The year has proven a disappointing one for the national housing market, with those rising interest rates and concern about the economy’s future representing the main reasons for the continued sluggishness.
While speculation is rife that the cooler overall market could push mortgage professionals out of the industry, Shraybman urged brokers to take the long view – and realize that this year is far from the first time the market has faced turbulence and headwinds.
“I’ve been doing this for close to 20 years. The market always has ups and downs,” he said. “Stick it out. Just keep building the network, keep building and providing top service for your clients, for the referral partners. That’s the only way to keep going.
“I’m sure a lot of loan officers are struggling. But thankfully, I’m not. And the reason for that is that I’ve been just keeping my head down and I’ve been working on controlling what I can control.”
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