One broker says a healthy market looks like an EKG, not a straight line
Anytime there is a major headline like the Federal Reserve voting to raise its benchmark rate, consumers are going to have a boatload of questions.
For those currently in a loan pipeline, questions turn to what impact, if any, the rate move will have on a customer’s mortgage rate. On the other side, those holding variable rate mortgages wonder how a rate move might change their monthly payment.
All of these questions cause anxiety in current and future homeowners. While that creates another hurdle for brokers to work through, one veteran broker said it also creates an opportunity to educate customers on what they should be focused on in the current market.
Samantha Shelton (pictured top), mortgage broker and president of Align Lending, said one of her first messages to consumers is that market volatility is not a sign that something has gone wrong.
"A healthy market looks like an EKG," Shelton told Mortgage Professional America. "I hate to say that, but I always use that as my analogy. It goes up, and it comes down. That's how history has always been, and rates will move up, and rates will come down. It's just something that we have to be fluid and move with."
‘Communication and strategy really matter’
Shelton said her own approach to client conversations starts with making sure she understands the data herself before she tries to explain it to anyone else.
"This is where communication and strategy really matter," she said. "Leaning into MBS Highway is a great place to get information. If you are not good at reading the data or understanding it, lean into other places that offer support that's data-driven. Because our job is to explain what's happening without creating fear, we’re able to watch the market closely and help each client make the right decision for their situation."
That same standard, she said, applies to what she tells clients directly. An educated consumer isn’t going to panic when there is volatility in the market.
"Consumers should stay informed. They should not make any major financial decisions based on only a headline," she said. "Focus on your budget, your long-term goals, what you can comfortably afford today. The right approach is always to have a plan, to stay in contact with your mortgage professional to understand your payments clearly, and work with someone who is watching the market and communicating clearly the conditions and the changes that are happening to keep you informed."
Pushing through the headwinds
Regardless of what the consumer decides after being presented with all the information, Shelton said that brokers who arm customers with what they need to make an informed decision will be the ones they’ll come back to in the future.
"It is our job to create trust between us and the consumer, because that's what's going to help them whether they're buying next week or they decide to wait a year," she said. "You want that consumer to come back to you if they decide to wait. They trust you as their knowledgeable professional that's going to be guiding them on the right path for the solution of purchasing a home."
Shelton said the right strategies and structures will help both brokers and consumers push through any market headwinds they face and get a deal done.
"We're going to get through it, though," she said. "Brokers that are still standing are the ones that choose to keep pushing forward. I think that we're going to get through this just like any other time."
With AIME Fuse set to bring brokers to Austin this week, Shelton said the timing could not be better for a reminder that the industry is not going through this alone. Even in a stretch this difficult, the event has become one of the parts of the job she looks forward to most.
"I enjoy being part of AIME. I also sit on the Women's Mortgage Network committee, and it is just a really awesome place to get together," she said. "I always call it the summer camp for adults. It's kind of where you get to go and see all your friends in one place and interact with people that understand this job. It's hard for people who aren't in this industry, because you could be mid-conversation and have to walk away to take a phone call.
“We all understand that this industry can be demanding at that moment. This year we're really leaning into scaling. How do we build our business? How do we keep relationships? I'm really excited for this year."
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