Trends
the power of data-driven insights
Tenor
key take away: Customers are increasingly asking for longer terms → short-term profitability for sales is decreasing
Overall, it is clear that customers have mainly asked for 10-year fixed-rate mortgages. The clear trend towards shorter terms can definitely be linked to lowering interest rates.
Data as of 31.10.2024
Description
The graphic shows the breakdown of terms that have been requested since 2020. Data used: All binding offers and completed transactions.
What insights can be gained?
The graphic shows the trend in customer preferences regarding terms. This can be used to derive the short-term profitability of sales.
Forwards
Key take away: Customers are closing their mortgages again with constant lead times → A stable number of leads can be expected.
TExpectations for lower interest rates are clearly reflected in the lower forwards of this year’s transactions. Uncertainty has stabilized since mid-2023: the median and the range between the 15th and 85th percentiles have narrowed since the peak.
Data as of 31.10.2024
Description
The graph shows the development of lead times requested by customers. In addition to the median (dark blue line), the 15th and 85th percentiles are also shown (i.e. 70% of transactions are in the light blue area). Data used: All binding offers and completed transactions.
What insights can be gained?
This information allows to understand how far in advance customers want to take out new mortgages or extend their expiring mortgages. As soon as a trend is identified, conclusions can be drawn about the number of leads to be expected in the coming months.
Elapsed time for conclusion
Key take away: Customers decide faster → higher efficiency in sales can be expected
Median, 85th and 15th percentile have decreased since June 2024. This indicates that customers are taking faster decisions to conclude the mortgage. Faster decisions allow the advisor to reduce the time for advice/offer update, which has a positive impact on front office efficiency.
Data as of 31.10.2024
Description
The graph shows the time elapsed between the first price request and the conclusion of the deal, normalized to the value 1 as of January 1, 2021. In addition to the median (dark blue line), the 15th and 85th percentiles are also shown (i.e. 70% of transactions are in the light blue area). Data used: All completed transactions.
What insights can be gained?
This information is an approximation of how much time was invested in the deals and thus enables an assessment of the efficiency of the sales. Generally speaking, the less time the customer advisor had to invest, the higher the efficiency of the sales.