For most of the year, loan companies have been searching for refinance leads with better conversion ratios. U.S mortgage demand increased again last week, led by a rebound in refinancing applications as mortgage rates hit the lowest levels of 2010. Bryan Dornan, the founder of the mortgage lead company, the Lead Planet said, “Mortgage marketing has been difficult in 2010 for lenders and brokers that focus solely onhome refinancing, because lending guidelines have tightened to a very uncomfortable level.” Finding a homeowner who qualifies for a refinance is ten times more difficult than it was just 3 years ago.
In the article, Lead Planet indicated that refinance lead volumes surged almost 20% last week. Apparently their lending partners utilized the increased lead volumes and new loans submitted into process increased tenfold. A spokesman for the Lead Planet said Purchase lead volumes rose 5.75% even though nationally home loan applications had come to a screeching halt.
Overall, mortgage demand increased 3.9% on a seasonally adjusted basis. Unadjusted, demand increased 3.4% from the week before. 30-year fixed-rate mortgages dropped from 5.02% to 4.96%, while rates of 15-year fixed-rate mortgages fell to 4.32% from 4.34%. Interest rates on one-year adjustable-rate mortgages decreased from 7.03% to 6.86%. Read the original article online > Lead Planet Reports Big Jump in Mortgage Refinance Lead Volumes
