by Steve Deggendorf, Director of Market Insights Research, Fannie Mae
To better understand the kind of influence that both online and personal sources of information have on the mortgage shopping experience, we asked recent mortgage borrowers about their experiences with real estate agents, mortgage lenders, friends and family, and online sources of information, such as mobile apps, websites, and social media. The survey sample was constructed from borrowers who obtained purchase money mortgages in 2016 that landed in the Fannie Mae book of business.
What We Learned
The survey found that the most influential sources of information for borrowers are industry professionals who offer a personal touch: mortgage lenders (32 percent) and real estate agents (30 percent). Notably, online sources (13 percent) lag well behind person-to-person interactions. Among those surveyed, Millennials reported using both online and person-to-person resources with similar frequency when they shopped for their mortgage – but they said that personal interactions, not online sources, were the most influential. Overall, mortgage lenders, real estate agents, and family and friends are seen as more trustworthy and credible than online sources, which were ranked primarily for their convenience.
Hold the Phone
Consumers do have an appetite for online resources during the mortgage-shopping experience – respondents said they want to use mobile devices nearly twice as often in the future.
So, to be competitive, real estate agents must evolve their digital offerings to provide an omni-channel experience that allows consumers to move conveniently between online and personal interactions.
For more, read our Perspectives article.
Estimates, forecasts, and other views expressed in this article should not be construed as indicating Fannie Mae’s expected results, are based on a number of assumptions, and may change without notice. How this information affects Fannie Mae will depend on many factors. Neither Fannie Mae nor its Economic & Strategic Research (ESR) Group guarantees that the information in this article is accurate, current, or suitable for any particular purpose. Changes in the assumptions or underlying information could produce materially different results. The ESR Group’s views expressed in this article speak only as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.