Patty Arvielo is president and co-founder of New American
Funding and has more than 35 years of experience in the
mortgage business. She manages sales and operations for the
company and also continues to originate loans. She serves
on the Diversity and Inclusion Committee as well as the
Consumer Affairs Advisory Council for the Mortgage Bankers
Association. Arvielo also is a member of the corporate board
of governors for the National Association of Hispanic Real
Estate Professionals. Reach Arvielo at email@example.com.
The Housing Market Is in Transition
To succeed as conditions change, you must stay ahead of the curve
By Patty Arvielo
There is one thing that’s constant within the mortgage marketplace: change. It’s inevi- table. As the industry evolves, those who are prepared for the changes will not only
weather the cycles, but will continue to succeed.
This coming year is no different. Change is on the
horizon. As the market transitions, it’s vital for mortgage originators to not only anticipate the future
direction of the market, but also to recognize the key
homebuyer groups. Otherwise, you won’t be able to
keep pace in a competitive arena.
Originators have to have their pulse on the market
and constantly look five years down the road. When
you’re in tune with the trends, you understand how
current issues affect the housing marketplace, which
allows you to effectively navigate your business
through transitional periods. Knowing the market and
taking proactive measures, as opposed to reacting
to changes, will mean the difference between being
successful and being unsuccessful.
As 2017 progresses, originators have to be prepared
Target the purchase market
to transition toward a purchase market, while keeping
in sight the bigger picture. That larger frame encom-
passes an emerging homebuyer demographic that is
dominated by millennials — including Hispanic mil-
lennials, or “hispennials.” As this transition takes place,
originators need to be equipped to reach the target
demographic. Without a strategy geared toward a
purchase market, and methods for reaching this new
generation of homebuyers, originators may miss the
opportunity to succeed.
Existing-home purchases are expected to increase
moderately in 2017 — by about 2 percent, to 5. 46 million homes — while new-home sales are projected
to grow by 10 percent this year, according to
Realtor.com. The number of first-time homebuyers,
however, is projected to jump to 52 percent in 2017,
up from 33 percent in 2016, Realtor.com reports. That
growth means there is a great opportunity to serve
first-time or move-up buyers, many of whom will be
millennials, including hispennials.
Since the bulk of the housing market this year is
expected to be purchase transactions, originators
have to gear their efforts in this direction. That means
having a good strategy in place, one that includes
establishing solid partnerships with real estate agents.
Realtors are daily working with prospective homebuyers who are actively house hunting, so it is important to become a go-to contact for them when they’re
ready to make a referral. This happens by staying in
regular communication so you build a relationship
over time. If you’re not in touch with real estate agents
and consistently following up with previous clients, it
will be more difficult to keep your loan volume steady
during transitional phases, regardless of the borrower
demographic being targeted.
Market toward millennials
As a new generation of homebuyers shapes the mortgage industry, you have to consider whether you’re
ready to effectively reach them. Zillow estimates that
millennials account for 42 percent of the current housing market, which is more than any other generational
group. They’ve not only become the largest generation in size, surpassing baby boomers, but they’ve also
become the largest segment of homebuyers.
Connecting with this demographic means understanding the millennial buyer. They’re a tech-savvy,
on-the-go generation and want instant access to
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