2024 Mortgage Rates: How Realtors Can Find Success In Today’s Market Despite Uncertain Rates

While it may be a long time before we see the pandemic-era 30-year fixed mortgage rate of 2.65% again, there's some good news on the horizon.

Mortgage rates are finally downward after a rocky start to 2024. 

Earlier this year, rates hit over 7% in April, but they've been gradually decreasing, with a recent drop to 6.47% in August. 

And now, the moment we've all been waiting for... (drumroll, please): 

Rates have dropped to 6.09% — the lowest in over a year — bringing much-needed relief to buyers and sellers.

Despite lowering rates, buyers, especially first-timers, face challenges with elevated home prices due to limited supply.

Similarly, many sellers stay on the sidelines because of lower inventory and rising home prices. With higher mortgage rates, they're likely to get fewer homes for the same price, making them hesitant to sell.

So, how can realtors find success in today's unpredictable market?

The solution: You need to stop being complacent and actively take market share from the pool of other local realtors.

By taking advantage of the current environment and putting in the extra work other realtors won't, you can establish yourself in any market condition — even uncertain ones like today's.

To support you in this process, we'll break down:

• Current State of the Housing Market

• How Realtors Can Thrive Despite Mortgage Rate Unpredictability

• Strategies for Generating More Seller Leads In Today's Environment

Current State of the Housing Market

Imagine you're hiking on a trail where the path keeps changing. One moment, you're facing a steep climb as mortgage rates rise, and the next, you're dealing with a tricky descent as home prices go up. 

It's where the old adage, 'You can't see the forest for the trees,' comes from. 

But you know what's missing from that? 

A knowledgeable, resourceful, and experienced local guide to help the hikers make sense of where they're going.

Along the way, the number of available homes shifts unpredictably. 

In this constantly changing environment, understanding market shifts, rate adjustments, and macroeconomic trends will help establish yourself as a trusted, guiding presence for buyers and sellers.

Impact of High Mortgage Rates on Market Volume

Spikes and drops in mortgage rates are the two most consequential events for the housing market.

Why? Because higher rates mean lenders charge more interest, leading to larger payments and making homes less affordable. 

Even more eye-opening, each percentage point increase in mortgage rates cuts home affordability by about 10-15%. 

As a result, fewer buyers are entering the market.

In fact, home sales in the U.S. totaled 4.09 million last year, a sharp 18.7% drop from 2022. 

This is the weakest year for home sales since 1995 and the largest annual decline since 2007, when the last housing slump started.

When mortgage rates drop, like the recent decline to 6%, more people usually start buying homes because loans become cheaper.

This can also encourage current homeowners to sell their properties. 

As a result, the housing market often sees more activity with increased competition for homes, which can drive up prices and speed up sales.

What's more? Sellers are also feeling the pinch. 

When buyers are reluctant to enter the market due to high mortgage rates and increased borrowing costs, sellers hesitate to list their properties. 

This is what's called the "mortgage lock-in" effect (more on this below). 

The "Mortgage Lock-in" Effect

The mortgage lock-in effect occurs when homeowners hesitate to sell because they have favorable mortgage rates. 

For example, the number of existing homes sold dropped by 5.4% in June compared to both the previous month and the same time last year, according to the National Association of Realtors.

That's not surprising, considering the average interest rate for a 30-year fixed mortgage was under 3% in early 2021 but has risen to a little over 6% in 2024. 

The domino effect? Homeowners who secured low rates during historically low periods are reluctant to move to a new home with a potentially higher rate. 

With fewer homes available, sales drop, and buyers compete more, pushing up prices and making it harder to find a home.

So, how can you help your clients thrive despite increasing mortgage rates? 

By grabbing a bigger share of the market.

How Realtors Can Thrive Despite Mortgage Rate Unpredictability

In today's challenging real estate market, hoping and praying for a change isn't going to cut it with rising mortgage rates and fewer homes selling. 

To achieve long-term success, you need to stand out and capture a larger market share. 

Complacency isn't an option — let's explore key strategies to help you grow.

Growing Your Business in a Competitive Market

Growing your business in a competitive real estate market means establishing and excelling in a unique niche. 

Simply claiming you'll dominate your entire market isn't enough. 

In fact, 72% of clients prefer agents who specialize in specific areas or types of properties, so you need to set yourself apart actively.

For example, specializing in luxury homes or historic neighborhoods can help establish a strong reputation and become well-known in your field.

Offer personalized advice and leverage detailed market insights to add value. 

With 81% of clients valuing tailored recommendations, your ability to provide relevant information and quick responses can significantly enhance your appeal.

In short, identify what makes you unique and use it to attract clients who need exactly what you offer. 

This approach, backed by a clear specialty and responsive service, will help you stand out in a crowded market.

How a Better Pricing Strategy + Exclusive Lead Lists Can Help You Stand Out

In low-volume environments, where there are fewer transactions, each one becomes a hard-fought battle between multiple realtors.

Needless to say, it will take more than ever to win listings.

One way to stand out? Using comparables in your listing presentations. 

Comparables, or "comps," are recent sales of similar properties in the same area. 

By showing these comparisons, you help potential clients understand how their property compares to similar homes. 

Not sure where to start? PropertyRadar makes it easy by giving you the latest, detailed data on recent sales and market trends.

While most realtors price homes based on 'feeling' and 'experience,' you'll come armed with real-time market data to inform your pricing strategy. 

Think about it this way: if you were a seller, which type of realtor would you want to price your home?

Another way to stand apart? Leveraging exclusive lead lists to help you identify and target potential clients more effectively. 

When acquiring leads for your business, you have two choices: purchasing premade lists or creating your own. 

While buying lists offers speed and convenience, but they might not always meet your requirements.

First, these lists can be pretty pricey, quickly depleting your marketing budget. 

When you purchase lists from brokers, you often pay a premium due to additional fees and markups.

Another issue? Purchased lists often lack the specificity and relevance necessary for an effective marketing campaign. 

They tend to be too generic and frequently omit essential details like recent property transactions or homeowner intent. 

This absence of tailored information can result in low engagement rates and reduced ROI, as your messages may not connect with the right audience.

Although building your own lists takes more time, it provides highly targeted and relevant leads — something that's impossible with purchased lead lists.

As you've probably noticed, we keep referring to them as 'exclusive lists.' 

Why? It's not necessarily because the data itself is exclusive. 

Instead, by building a list and layering in multiple criteria, the likelihood of someone else having the same list is very low. 

In fact, it's so tiny that you can confidently consider the list you created as 'exclusive' to you.

By creating your own lists, you can carefully customize your outreach to target high-potential prospects by incorporating specific financial, demographic, and situational criteria. 

This detailed insight helps you pinpoint leads that are genuinely interested or ready to act, which premade lists with their broad data may miss.

However, if you choose to buy lists, integrate them with PropertyRadar to strike a balance between personalization and efficiency.

Why? Because PropertyRadar provides access to exclusive leads that aren't available to the general market.

Unlike standard lead lists, PropertyRadar helps you to target specific properties and owners using unique criteria. 

How? By leveraging public records.

Why Complacency is Not an Option + Public Records

Public records are your hidden advantage for lead generation. 

They offer comprehensive details on individuals and properties, including extensive owner information, transaction histories, and a wealth of situational and demographic data.

This valuable information helps realtors identify the most promising properties, find potential off-market sellers, and discover new opportunities for clients, among other benefits.

It also allows you to fine-tune your marketing efforts to attract potential buyers and generate new leads more effectively. 

The best part? Public records are readily accessible. 

You can typically find them at local government offices or online portals, usually at the county level.

However, data-driven platforms like PropertyRadar can significantly improve your lead-generation efforts by offering precise, actionable insights. 

PropertyRadar taps into an extensive range of public records, covering over 150 million properties, 250 million individuals, and more than 1 billion phone numbers and emails. 

This wealth of information is organized in a user-friendly database, accessible via both desktop and mobile apps.

With PropertyRadar, you can refine leads based on specific criteria like property type, ownership details, equity levels, and recent sales activity. 

This customization allows you to create exclusive lists tailored to your unique needs, giving you a significant edge over the competition rather than relying on generic lists.

Why is this important? Many realtors constantly work to increase their market share in today's real estate market. 

You risk falling behind if you don't actively try to stand out and stay ahead. 

Complacency — just doing the bare minimum — can leave you vulnerable to competitors who are more aggressive and innovative. 

To keep your edge and succeed, you need to stay proactive and continually improve your strategies.

Strategies for Generating More Seller Leads In Today's Environment

Now that you understand how to thrive despite uncertain mortgage rates, it's time to explore new strategies for attracting more seller leads in today's market.

From revisiting the Realtor Playbook and adapting to market conditions to determining whether an outbound or inbound approach works best for you, it's crucial to tailor your strategies to what resonates with your target audience and aligns with current trends.

Rest assured, you're in good hands. 

We offer practical guidance and support to help you navigate today's real estate market effectively.

Revisiting the Real Estate Playbook

In a tough real estate market, success doesn't come by chance — it takes a smart strategy. 

The Realtor Outbound Playbook is your go-to guide for mastering challenges and turning them into opportunities. 

First things first: Focusing your outreach on the right people is crucial. 

Using data to identify potential sellers, such as homeowners facing foreclosure or those with significant home equity, you can tailor your messages to address their situations. 

Maintaining relationships is also essential. 

Even if a lead isn't immediately ready to sell, regular follow-ups can keep you in their minds. 

Employ various communication methods, including phone calls, emails, direct mail, door knocking, and postcards, to stay connected and offer ongoing value.

Understanding current market trends and property values is critical to offering accurate advice. 

By staying informed about market dynamics, you position yourself as a knowledgeable advisor who can confidently guide clients through their decisions.

Adapting your marketing strategy to focus on effective channels is another crucial step. 

This might involve using targeted online ads, creating relevant content, or engaging in local events. 

Ensure your messaging addresses the specific challenges and opportunities in today's market.

Finally, being flexible and creative can make a significant difference. 

As market conditions change, be prepared to adjust your strategies and explore new solutions. 

Embracing adaptability and innovative thinking can help you succeed even when facing tough circumstances. 

<< Access the complete Playbook >>

Outbound vs. Inbound Marketing: Which Approach Works Best?

Marketing generally falls into two categories: inbound and outbound. 

Inbound marketing attracts potential customers by offering valuable content and resources, while outbound marketing reaches out directly through methods like ads and cold calls.

In the real estate market we're facing today, relying solely on inbound marketing — where you wait for leads to come to you — can be risky. 

The space is crowded with competition, making it difficult to stand out. 

Instead of waiting for leads to come to you through inbound channels, taking control of your lead generation through outbound marketing can be much more effective. 

Outbound marketing puts you in the driver's seat, allowing you to reach out directly to potential clients, regardless of the market conditions. 

Even with high interest rates, outbound tactics give you the power to find and engage with the right people.

You can create personalized messages that resonate with their needs by targeting specific groups, like homeowners who may be ready to sell. 

Start your multi-channel campaigns by making door-knocking your first point of contact. 

This allows you to test your message, get instant feedback, and gauge interest. 

Follow up your door-knocking with a phone call to keep the momentum going.

Phone calls allow you to connect directly and personally, helping turn initial interest into a real conversation.

Next up, send out direct mail. 

A single postcard can make multiple impressions in each household. 

While digital channels can be easily overlooked, a well-designed postcard has staying power, giving your message repeated visibility in a home.

Next, turn to email. 

It's a cost-effective way to reach many people simultaneously with personalized messages. It's unobtrusive, allows easy customization with the right tools, and can be tailored to individual needs.

After perfecting your strategy, online ads help spread your message to a broader audience.

In future campaigns, begin with digital channels to use your refined messaging, and then follow up with the rest of the sequence for the best results.

Adapting to Market Conditions: Tips for Real Estate Agents

With your outbound strategy now fine-tuned, how do you track down motivated sellers? 

We've rounded our top recommendations below.

Up first? Hunting.

This strategy involves actively seeking out potential sellers through direct engagement methods.

Start by launching targeted direct mail campaigns and sending personalized letters or postcards to property owners considering a sale. 

Next, enhance your efforts with door-knocking. 

Even better? You can boost your door-to-door strategy by tailoring your outreach efforts to connect with distinct segments of your target market.

This involves segmenting potential clients according to their unique needs, preferences, and demographics. 

For instance, if you're targeting empty nesters, you might highlight downsizing opportunities, neighborhood amenities, and the financial advantages of selling their current home. 

Consider focusing on these specific groups:

• Longtime Residents: Focus on homeowners who have lived in their current properties for 10-20 years or more and have substantial equity. Particularly target those with larger homes and adult children, as these factors may suggest a desire to downsize. Highlight the potential benefits of selling in the current market.

• Families with Young Children in Underperforming School Districts: Seek out families who have built up significant equity in their current homes and might be considering a move before the new school year starts. Talk with them about options that offer better educational opportunities and neighborhood amenities suited for young children.

Need help with finding new opportunities? Here are 7 Ways To Find Distressed Properties and Turn Them Into Deals

Another strategy? Consider Farming. 

This strategy is all about establishing a deep, long-term connection within a specific community to create a steady stream of leads.

Begin by selecting a particular area where you want to build your presence. 

Start with consistent outreach through community-based initiatives. This could include sponsoring local events, participating in neighborhood functions, or hosting workshops on real estate topics.

In addition, a thoughtful direct mail campaign should be implemented, such as sending regular updates about the local real estate market or helpful tips for homeowners.

This not only keeps you visible but also positions you as a knowledgeable resource.

To further personalize your approach, focus on engaging with various community segments. 

For example, if you're targeting retirees, offer insights into retirement-friendly housing options and senior community amenities.

Consider these key groups:

• Retirees: Engage with older homeowners considering downsizing or relocating to a retirement community. Provide information on suitable housing options and the advantages of selling their home.

• Local Business Owners: Build relationships with business owners in the area who might know potential sellers or want to relocate. Offer resources and support for business owners looking to buy or sell property.

After identifying your audience, creating personalized messaging tailored specifically to them is crucial.

To generate effective messaging, understand your audience's needs and interests. 

Use clear, concise language and include a strong call to action. Test different messages to see which resonates best and adjust accordingly.

Need help? Add T.O.R.N (Targeted, Outbound, Relevant, Neighborly) to your communication strategy.

Start by making sure your messaging is Targeted. This means finding the right people to avoid using generic messages that don't address their specific needs or concerns.

​​Next, emphasize Outbound strategies. While crafting compelling messaging is crucial, how you deliver it plays a key role in your success.

Being visible on multiple channels helps build trust with potential customers, and personalizing your outreach makes it even more effective.

Did you know that 91% of people are likelier to do business with companies that offer personalized recommendations and deals?

This is where staying Relevant is essential. To connect with your audience, you need to tailor your messages to their needs and interests rather than just focusing on your goals.

Finally, be Neighborly. Are you ready to distinguish yourself from the competition and set a high standard for best practices?

By creating positive and genuine interactions, you show that you're caring and supportive, making yourself stand out from businesses that only meet basic standards or use pushy, spammy tactics.

The best part? PropertyRadar is here to support you throughout the process.

We'll help you set up the right outbound strategies to connect with and engage your audience, regardless of their journey.

Get a free PropertyRadar trial and unlock the power of 150 million properties to find your next leads today.