The Mortgage Offer Is In The Mail
The nation’s lenders are churning out 38 million mortgage solicitations a month, ads sent to your home through the postal system according to Mintel Comperemedia.
While 38 million is a big number, the volume of direct mail solicitations has actually been going down for the past two years. In the first quarter of 2009, says Mintel, the total number of mortgage and home equity direct mailings was 84% lower than the volume seen two years earlier.
Stephen Clifford, vice president of financial services for Mintel Comperemedia, believes the leveling of direct mail may signal the housing market bottom: “Many experts believe housing is stabilizing, based on indicators such as rising consumer confidence, more housing starts and increased existing home sales in recent months. The leveling off of home loan direct mail is another indicator that America may be reaching the floor of this downturn in the housing market.”
Mintel also reports that lenders have dramatically changed their direct mailings to better suit today’s market. Reduced home values and an increase in foreclosures have dried up the once-robust home equity market. So unsurprisingly, in Q1 2009, 83% of secured loan direct mail offers promoted mortgages only, up from just 65% in Q1 2007. Adjustable rate mortgages (ARMs) have also fallen out of favor in direct mail. Mintel reports that in Q1 2009, only 15% of mortgage direct mailings advertised ARMs, down from 38% in Q1 2007.
It would be interesting to see if real estate agent mailings have also bottomed out. In my neighborhood, we continue to get regular mailings from the two or three top agents in this area — but we are not getting mail from new agents trying to break into the market.
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