5.2014 How to Create a Brand as the GO-TO Mortgage Professional

5.2014

How to Create a Brand as the GO-TO Mortgage Professional

FreddieMac

Single-Family Mortgage Originations

1 – To dominate the market of Millennial buyers who are now entering the market in record numbers

2 – To leverage the opportunity presented by the Baby Boomers who are moving-up to the house of their dreams or downsizing their primary residence and buying a second vacation/retirement home

3 – To readily identify the three most important activities they can be involved in over the next 90 days

Answer ANY & ALL questions you have regarding Bridge Builders and the opportunities it provides

Today, we will construct a unique value proposition that will allow you to stand out as the “go-to mortgage professional” with your real estate partners by giving you the tools your agents need:

HOUSEHOLDSin the U.S.*2014-2017

121MCurrent Households in the United States

3.7%Projected Growth over

the Next 3 Years

*Urban Land Institute’s 2014

Emerging Trends in Real Estate

4.48MAdditional Households to

be Formed

Are 4.2M First Time Buyers about to Buy?

Zillow 3/2014

of all renters nationwide would like to buy within the next 12 months10 %

first-time home sales, if all renters that wanted to buy actually did purchase a home in the next year

4.2M

Unemployment Rate: Millennials Ages 25-32 with a Bachelor’s Degree vs. U.S. Rate

Bureau of Labor Statistics & Pew Research

Median Annual Full Time Wage: Millennials Ages 25-32 with Bachelor’s Degree vs. U.S.Rate

Bureau of Labor Statistics & Pew Research

MILLENNIALS are ready to buy homes…

of Millennials plan to purchase a home in the future

85%increased their interest in purchasing a home in the past year as the positive

attributes of homeownership resonate with this generation

58%Pulte Group 2014

Millennials: Associate Owning A Home with…

Pulte Group 2014

NAR 2014

Percentage of Buyers by Generation

Buying is CHEAPER than renting in ALL of the 100 largest metros by an average of… 38%

Trulia 2/2014

The Increasing Cost of RentingThe Increasing Cost of Renting

Census Bureau 2014

Median Asking Rent1988-2013

Federal Reserve

OVER 30X greaterthan renters

Homeowners Net Worth…

An American Family’s

Net Worth

Federal Reserve

2014 will be the year of the repeat homebuyer

- Trulia

said they are considering selling their home in 2014

71%

have a positive outlook on housing this year

69%

have a positive outlook on the economy this year

63%

Consumer Views on Housing & Economy

Lending Tree Survey 2014

Paul Diggle Capital Economics

We are anticipating a meaningful increase in the supply of homes for

sale. The survey evidence suggests that rising prices are motivating more

owners to list their homes.

“The oldest Baby Boomer turns 68 this year, and the youngest turns 50. They are buying homes in droves as their employment situation, home values, and stock portfolios have almost fully recovered from the Great Recession.

We are seeing strong sales in this same demographic throughout the country.”

- John Burns Real Estate Consulting

Boomers are starting to move…

BH&G 2014

Baby Boomers ready to buy a 2nd home…

said they’d likely buy a second home, such as a vacation or beach house,

to use during retirement

25%

Vacation Home Sales

UP 29.7 %

NAR 2014

Thinking about moving up to the home of your dreams?

Comparison – End of 2015 Current Home Move-up Home

Current Price $300,000 $400,000Future Price (+8%) $324,000 $432,000Future Gain $24,000 $32,000

Actually Lost $8,000

Move-Up Seller

Impact of Increasing

INTEREST RATES

"One thing seems certain: we are not likely to see average

30-year fixed mortgage rates return to the historic lows

experienced in 2012."

Freddie Mac

1/2013 5/2014

Freddie MacProjected Rates

May 2014 – 2015 4Q

Freddie MacActual Rates

January 2013 – May 2014

Freddie Mac 5/2014

Date Mortgage Interest Rate* P&I**

Today $250,000 4.5 $1,266.71

End of 2015 $270,000 5.7 $1,567.08

*Average Commitment Rate per Freddie Mac **Principal and Interest Payment

$300.37Difference in Monthly Payment

Date Mortgage Interest Rate* P&I**

Today $800,000 4.5 $4,053.48

End of 2015 $864,000 5.7 $5,014.66

*Average Commitment Rate per Freddie Mac **Principal and Interest Payment

$961.18Difference in Monthly Payment

Decade Average Rate Payment1970s 8.86% $1,5891980s 12.7% $2,1661990s 8.12% $1,4842000s 6.29% $1,2372014 YTD 4.36% $997

The average 30-year fixed mortgage rates and the approximate payment for a $200,000 mortgage. Payments are principal & interest only, based on a $200,000 fully amortizing mortgage.All terms are assumed to be 30 years.

Freddie Mac 3/2014

Historic Mortgage Rates by Decade

CONFUSIONCONFUSION

FEAR

U.S. Backs Off Tight Mortgage Rules-Wall Street Journal 5/14/2014

FHA Announces Blueprint for Greater Homebuyer Access to Credit- National Association of Realtors 5/13/2014

Jumbo Loans Thrive As Other Mortgages Slip- Boston Globe 5/12/2014

They must…

Be their ‘Expert’This is a person to whom people will turn for advice on difficult or complex real estate decisions.