A new Special Topic study out Thursday from the Economic & Strategic Research (ESR) Group at Fannie Mae finds that personal sources of information influence consumers outweigh online sources when they shop for a mortgage.
The ESR Group surveyed recent mortgage borrowers about their experiences with real estate agents, mortgage lenders, friends and family, and online resources such as mobile apps, websites, and social media. The survey sample was constructed from borrowers with purchase mortgages in the Fannie Mae book of business that were originated in 2016.
Key findings included:
- Borrowers said lenders and real estate agents (industry pros who offer a personal touch) were more influential than online sources during the mortgage-shopping experience.
- Among those surveyed, Millennials reported using both online and person-to-person resources with similar frequency when they shopped for their mortgage — but they also 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.
- But 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.
- To be competitive, lenders and 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.
Read the full report and hear from the author, Steve Deggendorf, in his related Perspectives blog.
