Notary Service Provider, MortgageDocs, Reports Mortgage Clients Experiencing over 30% Decline in Application Volume
(PRWEB) July 31, 2013 -- With the Market Composite Index reporting mortgage applications down roughly a third from one year ago, MortgageDocs says many of their mortgage clients are seeing a reduction in application volume between 30-40%.
The Mortgage Bankers Association data confirms this trend, recording six-straight weeks of falling mortgage application volume. Experts say the decline in mortgage activity is closely tied to the increase in interest rates, now at the highest level since July, 2011.
Despite falling mortgage application numbers, Christian Redmond, CEO of MortgageDocs, a prominent national notary signing service, says his clients in the mortgage industry are optimistic.
“Once consumer confidence is re-established and buyers digest the recent interest rate hikes, our clients are prepared for long-term sustained growth, as are we,” said Redmond.
To prepare for long-term growth, MortgageDocs has strategically invested in a proprietary process management platform that automates many of the day-to-day requirements of the notary signing service.
“Our proprietary software allows for smarter management of notary processes and gives us the flexibility to dynamically scale the demands of market activity while maintaining a focus on industry trends and requirements,” said Redmond
Long-term growth may be in the future, but Redmond says his clients in the mortgage industry are definitely experiencing negative short-term effects of the interest rate hike.
“In general,” said Redmond, “those on the origination side are seeing less productivity; our mortgage clients are seeing application reductions as high as 40%. Despite the recent hike in interest rates, according to the National Association of Realtors, new home sales have surged 38% from last year and previously owned home sales still remain 15% higher, keeping our clients optimistic about the future of the housing market in general.”
The sudden drop off in mortgage applications may be a thorn in the side of many mortgage originators, but that is not to say this short-term fluctuation is for the worse. Experts say rising interest rates are often caused by a strengthening economy. Ironically, the same higher interest rates that are currently causing the mortgage application drop-off, may very well be a primary contributor to the housing market recovery as a whole.
Allison Dickherber, MortgageDocs, http://www.mortgagedocs.com, +1 (949) 825-5946 205, [email protected]
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