By KIMBERLEY HAAS
Leaders at Rocket Pro TPO are extending their promotion on 30-year conventional purchase loans at or under $200,000 as they gear up to be more competitive in that market this year.
During an IGNITE: Live! webinar on Monday, Executive Vice President Mike Fawaz announced that they are continuing their 37.5 BPS credit on these loans.
Fawaz said they want to make sure that they listen to their broker partners and their feedback.
“This is something we have been extending every single month since December. And the feedback continues to be incredible and positive and broker partners want it,” Fawaz said.
Fawaz explained the philosophy behind the promotion.
“When you think about it, we are very competitive when it comes to other pricing above $200,000. We are consistent and we continue to deliver to our broker partners. But we wanted to get even more competitive here,” Fawaz said. “I understand that $200,000 only applies to a certain group, but this is a group that needs it. This is a group that we want to make sure we continue delivering to.”
Fawaz said he thinks the promotion gives their broker partners what they need to win that business.
What does this market look like?
According to Elizabeth Renter, a senior writer and data analyst at NerdWallet, about 28 million Americans plan on buying a home and they are typically hoping to spend $200,000.
Renter says options may be limited for those buyers as the national median sales price of all homes, including condos, is $342,000 based on information from Zillow. The typical sales price for homes across the U.S. hasn’t been below $200,000 since March of 2016.
“A few hundred thousand may not go far enough in the hottest markets, but careful hunting in other areas and a willingness to forgo some ‘must haves’ on your wishlist can make homeownership more likely a reality than a dream,” Renter concluded.
Evan Wyloge, a data journalist at Realtor who covers trends in real estate, said in a recent ranking of the top 10 metros for finding homes under $200,000 that in several parts of the country, there are hundreds, even thousands, of homes for sale at this price point.
The top metro is Detroit, Mich., where Rocket Pro TPO is headquartered.
There, 39% of listings are priced below $200,000. This three-bedroom, 1,355-square-foot house is listed for $174,900.
Charles Ryan, an associate broker and realtor at Keller Williams in Detroit, was quoted by Wyloge as saying he has seen a lot of newcomers to the area in the past decade.
“People who were never even from the city have turned their eyes to Detroit,” Ryan said.”They want to open a new business, purchase homes, rehab homes. In the last eight or nine years, the city has just been thriving.”
Pittsburg, Pa., Cleveland, Ohio, St. Louis, Mo., Baltimore, Md., Birmingham, Ala., Chicago, Ill., Memphis, Tenn., Indianapolis, Ind., and Rochester, NY, are also included on Wyloge’s list.
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