Mortgage Lenders Struggle to Stand Out as Demand Plummets and Rates Spike

What a difference a year makes. The U.S. mortgage industry has gone from record volume and profits in 2021 to a 22-year low in demand for new mortgages through the first half of 2022.¹ Along the way, J.D. Power finds that mortgage providers have struggled to differentiate themselves in the eyes of customers whose expectations of the experience are rising and competition for their business is even more intense. According to the J.D. Power 2022 U.S. Mortgage Origination Satisfaction Study,^SM released today, the average mortgage customer experience has become increasingly commoditized, with few lenders finding the right formula to build long-term trust and loyalty that truly stands out from the competition.

"There is no denying the effects of rising interest rates on mortgage demand, and this is precisely the time when lenders need to differentiate themselves as trusted advisors who can guide customers through the lending process and offer valuable counsel along the way,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power. “That means ramping up communication—keeping customers informed throughout the lending process and ensuring consistent and effective communications through all channels. Unfortunately, less than one in three customers say their lenders were able to deliver that optimal experience.”

Click here to read the press release, including full rankings and additional key findings from the 2022 study.

¹https://www.cnbc.com/2022/06/08/mortgage-demand-falls-to-the-lowest-level-in-22-years.html