The current market has been very difficult for mortgage broker; even today a new government report came out confirming the continued slowing market. According to this report, sales of new homes fell 16.6% in the month of January. The number of new homes on the market also decreased slightly. This was the largest decline since a 23.8% drop in January of 1994. Across the nation, the west coast saw the largest decline with a 37.4% drop off in new home sales. The Northeast saw a drop of 18.7%, while there was a decrease of 9.7% in the Midwest. The south faired the best with a drop off in new home sales, registering a decline of 8.1%. The one bright note was a stronger then expected existing home sales market. This market actually rose 3%, reaching there highest level in seven months, and its largest rise in two years (home resale's account for 85% of the housing market). Though this increase is positive, analysts remain cautious. David Lereah, the NAR's chief economist, noted I'm trying to be careful because we could see the nest month down a little". Also of note is that while sales were up, the prices of existing homes dropped 3.1% to $210,600. This price softness is expected to last at least through the spring. While the west saw the largest drop in new home sales, it was the region with the largest movement of existing homes. After years of low interest rates enticing people to purchase new homes, and others to refinance to a lower rate, the bubble has popped and many mortgage brokers are feeling this pinch. With increased competition, and slower demand, how can one replace that previous income? The most obvious answer, and one that mortgage brokers have already begun doing, is to expand the areas in which they service. As you have read earlier in this article, different parts of the nation have been effected differently. If you are accustomed to existing home sales, perhaps you should branch out west, where things are more positive. Perhaps those of you who have had previous success with new construction should look south. Of course entering new markets may require obtaining a new license for each additional state. Contacting a bond agent may be a great place to start. For example Bryant Surety Bonds, Inc. (http://www.bryantsuretybonds.com/) has an extensive database on mortgage broker licensing information. With this knowledge and background they would be happy to share with anyone looking to branch out of their current territories. In fact these agencies will be able to share a wealth of information with you including territories that others are applying to (saturation rates) and recommendations as to what may be the next are to pursue. As with any industry there will be up and downs. As today's reports show, the mortgage market still has a ways to go before it is back on a solid foundation. Perhaps with this knowledge it is time to explore options to grow your markets.
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