Recession fears are sweeping the nation, leaving both mortgage lenders and consumers grappling with how to proceed in an unpredictable market.

Following the most recent Federal Reserve funds rate hike to continue fighting inflation, about half of U.S. economists are betting on a recession within the next year.

As a result, marketers are naturally feeling the pressure of how to address the possibility — and how best to guide borrowers through the lending process in the event it does happen.

According to marketing experts, one of the biggest goals of a rock-solid mortgage marketing plan — or any marketing plan — is to successfully position the company/brand as the confident, trustworthy, expert voice in the industry.

Mortgage lending experts understand the “whys” behind the mortgage rate fluctuations, and the Fed actions. While they may not be able to say exactly what will happen with rates in the coming months, they understand how to follow the indicators.

Marketing experts say mortgage lenders should tap into their industry knowledge to explain these factors simply to current and potential borrowers, and recommend what they should do with this information.

If a recession is truly on the way, analysts say mortgage rates may continue to fall. At the beginning of August, rate averages were hovering around 5%. Many financial experts are predicting rates will average 5.5% throughout August.

Experts say this may be a result of rates pre-factoring in Fed moves, and responding more to fears of a recession rather than fears of inflation. 

The Fed has been anticipating more rate increases since the beginning of the year, so as inflation continued to rise in spite of the actions they’ve already taken, mortgage experts understood this just meant more Fed actions were in the future.

As a result, many had already accounted for this ahead of time, in June’s rate increases, for example. 

Each Fed move to curb inflation puts the U.S. at increasing risk of a recession, experts say, because it’s such a delicate balance to curb inflation without harming the economy.

Marketing experts say one of the best ways to reach consumers personally, educate them, and push them to take action on next steps is via video marketing.

If mortgage rates are lower, the housing market is cooling, and more price cuts are in the future, lenders must take the opportunity to share with consumers what is happening, and how they can benefit from what’s happening.

Video marketing is effective at educating and building trust in consumers. Videos are easy to share and especially appealing to mobile users, research shows.

Marketing experts say businesses don’t need a robust video strategy to get started — although this will help down the line.

First, mortgage lenders should take the time to brainstorm their customer pain points and most-asked questions. Then, develop a plan and schedule for these topics, film in a brightly lit location, and post away on any social media channels.

Accurately measuring and tracking success can come later, experts say. Sometimes, it’s more important to just start creating, and start answering the questions that are most on people’s minds.

Photo by Mikael Blomkvist