There’s no such thing as bad press, is there? Or at least that’s what they say… whoever “they” are. In any event, it’s true… most of the time. And I think that what’s been going on in the media regarding interest rates and mortgage rates has been just that – a great PR campaign that is generating even greater interest in the prospect of more affordable mortgages.
It’s certainly been all over the news that, hopefully, home buyers may finally be getting some of the relief they’ve been hoping and waiting for. Which means, I think, that now would be a good time for community banks to let the marketplace know that they have the mortgage products that these hopeful homebuyers have been waiting for.
We all know that mortgage rates have been high over the last few years. Finally, however – and according to multiple reports – change is in the wind; or at least it appears to be. According to ABA Banking Journal, “the rate for a 30-year fixed-rate mortgage averaged 6.35% this week, down from last week when it averaged 6.46%. A year ago, the 30-year rate was 7.18%. The rate for a 15-year fixed-rate mortgage averaged 5.51%, down from last week when it averaged 5.62%. A year ago, the rate was 6.55%.”
Federal Reserve Chair Jerome Powell also suggested in his recent Jackson Hole Economic Symposium speech that, “the time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”1
Apparently, Powell’s point of view was shared by participants in the end-of-July Federal Open Market Committee meeting, who are also in favor of an “imminent” rate cut. “All participants supported maintaining the target range for the federal funds rate at 5¼ to 5½ percent, although several observed that the recent progress on inflation and increases in the unemployment rate had provided a plausible case for reducing the target range 25 basis points at this meeting or that they could have supported such a decision.” Apparently, the key event to watch is the Federal Reserve meeting scheduled for mid September, as many banking industry experts and market watchers believe that the Fed is likely to cut rates at that time.
Of course, if you’re reading this you’re very likely a community banker. That means, you already know all of this: No late-breaking news flashes here. But to many outside the banking industry, however – especially those who have been holding off on purchasing a home – this is important stuff to know. Do a Google search with the phrase “will banks lower mortgage rates” and you’ll be hard pressed to find a news source that isn’t commenting on it – from Bankrate, Forbes, CBS, and CNBC and to USNews Money, Business Insider, WSJ, and LendingTree.
In short, all eyes are on you, the community banker. All of this content around lowering rates and how this just might be the time to purchase a home is generating a lot of interest from potential home buyers. Which makes this a great time to kick your content marketing into high gear and market those mortgage products.
I mean, given the massive volume of press around a Fed rate cut and with it, more attractive mortgage rates, doesn’t it make sense to:
- Optimize your presence in the market?
- Unleash a flurry of mortgage product posts on your social media platforms?
- Revisit and refresh (Google algorithm spiders love crawling fresh content!) the resource page on your website and give yourself a better chance of securing a higher ranking on an SERP (Search Engine Results Page)?
- Use your social platforms to promote that newly-refreshed mortgage resources page?
- Create and post in your blog section loan-specific content around your rates, products and services?
If you haven’t done so already, do it now. For our part, we’ve done some of the work by creating quickly and easily customizable ads focused on home loan products and services. As always, we’re always here to help.
Bank Marketing Center
Here at bankmarketingcenter.com, our goal is to help you with that topical, compelling communication with customers — developed by bank marketing professionals for bank marketing professionals — that will help you build trust, relationships, and revenue.
Our web-based platform puts our client partners in complete control of their marketing message production. Among other benefits, such as the ability to easily comply with brand guidelines and route creative for approval, the layouts on our portal can be customized in just minutes - no design skill or software needed, it’s all “drag and drop.” With this kind of flexibility, bank marketers can respond quickly to changes in, for instance, interest rates, keeping the messaging around mortgage products both topical and compelling.
Want to learn more about what we can do for your community bank and your marketing efforts? You can start by visiting bankmarketingcenter.com. Then, feel free to contact me directly by phone at 678-528-6688 or via email at nreynolds@bankmarketingcenter.com.
1Forbes. Markets Firmly Expect The Fed To Cut Interest Rates On September 18. August 28, 2024.