Chicago, IL (PRWEB) June 29, 2013
Belman Insurance Advisor knows that it was to be expected that mortgage interest rates would go up. Homebuyers have seen in the past four years, the lowest interest rates in history. According to Freddie Mac, the average 30 year fixed rate mortgage in 2012 was 3.66%. In 1982, it was a whopping 16.04%. According to USA Today’s article entitled ‘Average 30-year mortgage rate up to 4.46%’ rates last week clocked in at 4.46%, up from 3.93% the week before, the home buying honeymoon may be over and with it a buying spree that boosted the homeowner’s insurance industry.
Homeowner’s insurance is not required when buying a house…with cash. However, if there is any type of loan on the property, a homeowner’s insurance investment is required. The low mortgage rates have helped encourage current homeowners and potential buyers to purchase not only primary homes, but also second or investment homes as well. All of which would require the purchase of homeowner’s insurance. Now that rates are on the inevitable upswing, BelmanInsuranceAdvisor.com believes the insurance industry will have to adjust itself accordingly.
What are these adjustments? It may mean offering better pricing to clients with not only multiple lines of insurance but with multiple dwelling policies. If rates are going up, it makes sense that home sales will decrease, even with decreased values in many areas. It will mean a concerted push for cross sales and perhaps even new product offerings and expansion into items like life insurance policies for seniors sales. There is no doubt changes are on the horizon. The insurance industry must continue to not only follow the trends but also lead the way.
BelmanInsuranceAdvisor.com looks at mortgage interest rates, their history and the profound effect the rate trends will have on the insurance industry. BelmanInsuranceAdvisor.com supports evolution in the industry and offers ways to sustain profitability while reacting to an ever-changing environment.
Belman Insurance Advisor imparts valuable information and guidance to the insurance industry to promote a healthy fiscal outlook.