This month, Real Estate magazine had the opportunity to sit down with Rocket Mortgage’s Bill Banfield, executive vice president of capital markets, to discuss what’s in store for real estate professionals and their clients as mortgage rates continue to rise this year.
Paige Tepping: Tell us about your history with Rocket Mortgage and how it led to your current role within the company, and what exactly that role is.
Bill Banfield: My time at Rocket Mortgage began in 1999, back when we were called Rock Financial. While I was heavily involved in product development and pricing at the time, I was also focused on helping the company grow while managing the quality and profitability of mortgage originations. Today, as executive vice president of capital markets, my No. 1 goal is to ensure our loans have the highest standards of quality. It has been a cool ride to go through the various market cycles over the years and watch the company grow from a couple hundred team members to tens of thousands.
PT: What are your primary roles and responsibilities as executive vice president of capital markets, and what is your favorite part of your job?
BB: My primary role includes helping our mortgage bankers engage with clients to provide great service by offering mortgage products that can help them achieve their goal of homeownership and financial freedom. I’m in a unique position since the capital markets realm engages with our mortgage banking team and outside parties such as Fannie Mae and Freddie Mac, so I view the mortgage industry from an interesting perch.
PT: As 2022 gets underway, how do you see the market changing?
BB: Based on what we’re hearing from the Fed, interest rates are expected to go up this year. Part of the reason we saw existing-home sales jump at the end of 2021 was due to a strong job market. Rates were also beginning to go up, which caused people to jump into the market to take advantage of the low rates. Interest rates are on the minds of everyone, and while they don’t determine everything that happens within real estate, they can have an impact on the edges.
PT: From your perspective, what will be the most significant change this year?
BB: As with anything, it’s what you don’t expect that gets you. We’re all focused on the Fed and COVID, but it’s just as important that we take a step back and prepare for the unexpected as well. It’s a big world out there, and anything can happen, so we need to be thinking about what the future may potentially hold—even if it’s not necessarily on our radar at the moment.
PT: With mortgage rates continuing to rise, how can real estate professionals prepare for the upcoming months?
BB: The best way real estate professionals can prepare for the months ahead is to encourage clients who may be thinking about getting off the sidelines and making a move to act now, while the rates are still low. On the other side of the equation, rising rates are usually a combination of different things: economic prosperity, a growing economy and increasing wages. If people’s wages are going up, are they going up fast enough to keep up with rates? Because we all believe rates could go higher, it creates a sense of urgency to act now.
PT: What is being done at Rocket Mortgage in anticipation of a changing market/rising rates?
BB: We’ve been investing heavily into supporting real estate agents, as we recognize the amazing impact they can have on homebuyers. To that end, we’ve been focusing our efforts on our Overnight Underwrite program, which ensures purchase loans are underwritten in mere hours. We’re also continuing to build out and enhance our Rocket Pro Insight platform. This gives agents unprecedented visibility into where their clients are in the process, helping agents seamlessly interact with clients throughout the home-buying journey.
PT: What impact will rising rates have on both buyers and sellers in the coming months?
BB: As rates go up, there will be a direct impact on the amount of home a buyer can afford, specifically among buyers who are on the margins. For well-qualified buyers, especially those who are buying for quality of life, not strictly as an investment, rates are less sensitive. The momentum we’re seeing in the housing market suggests that rates will go up, and sales will remain strong, particularly throughout the first part of 2022. What it all boils down to is that if your clients are interested in buying, now’s the time.
PT: As rates increase, what is your No. 1 piece of advice for both real estate professionals and their clients?
BB: Now that rates are going up, it reinforces the need to act with urgency. If your client finds the home they want to buy, it’s critical that they understand that time is of the essence, and partner with a lender who can provide speed to certainty.
The above article is sponsored content.
For more information, please visit RocketPro.com/RealEstate.
Paige Tepping is RISMedia’s managing editor. Email her your real estate news ideas at paige@rismedia.com.
