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Are shopping signals the secret to mortgage marketing?

Today’s mortgage marketers face greater competition than ever to grow their customer base and retain existing customers. Are you prepared for that steep…

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As we usher in a new era of galvanized homebuyers who are well-researched before making a move, personalizing the shopping experience is imperative to breakthrough. Educate your outreach by keying into shopping behavior and you can empower your mortgage marketing in the new year.

Market outlook

Although the rate of home price growth is slowing, appreciation remains robust. Supply shortages continue to put upward pressure on prices while rising 30-year rates continue to put downward pressure on refinance volumes. The refinance boom of 2021 has given way to the purchase market of 2022.

The 30-year fixed-rate average clocked its 2021 high just before Thanksgiving, and the first few weeks of the new year registered the highest average rate since the early months of the COVID-19 pandemic, according to consumer rate watchers. Though mortgage rates have gone up slightly, they still hover at bargain lows for consumers who are considering homebuying. Besides, we all know that buying a home is subjective, with personal finances and life events often weighing in more heavily than market conditions.

A new generation of buyers

Not only is the market pendulum swinging from refinance to purchase, but we are also seeing a marked shift in who is buying. According to CoreLogic, millennials accounted for 51% of home-purchase mortgage applications in 2021. In fact, millennials have made up the largest share of home purchase mortgage applications since 2016.

There is also an emerging influx of high-net-worth younger consumers buying high-end homes. Millennials, the 72 million Americans now ages 26 to 41 years old, are the most educated generation in history, have higher earnings than other generations, and are set to inherit more than any prior generation, according to Brookings Institute research.

For lenders looking to win this next generation of customers, it’s more important than ever to understand the market and services this clientele needs. This younger generation of digital natives is entering one of the more expensive times of their lives with new higher-value homes and expanding families.

With the trend of younger Americans purchasing expensive homes set to continue, there is an untapped opportunity to serve this demographic as they make big life purchases and create valuable long-term customers.

At the other end of the spectrum, multigenerational and mixed family households have become more common, as Americans are increasingly “doubling up” to reduce housing costs. This trend is exacerbated perhaps by the aging of America and the growing desire to age in place. Regardless of the motivations behind the multigenerational trend, the traditional “nuclear family” is no longer the dominant household structure. And, sadly, the nation’s housing supply hasn’t kept up with demand.

Economic indicators tell us we may be able to expect more purchase activity. Tappable equity, the amount available to homeowners while retaining at least 20% equity in their homes, rose by 32% last year, surging to an all-time high of $9.4 trillion as cash-out refinance borrowers pulled the largest quarterly volume of equity in 14 years, according to Black Knight’s October 2021 Mortgage Monitor. With the tsunami of refinance activity calming, it is worth noting that substantial equity also empowers new home purchases.

Using data to inform your marketing

Consumer shopping behavior has permanently changed, consumer expectations have changed, and our industry needs to adapt to those changes to stay competitive. Harvard Business Review conducted an oft quoted Lead Response Management Study a decade ago and follow-up studies by other organizations have since confirmed a whopping 78% of customers buy from the first company to connect with them, responding to their query. Are you familiar with the cocktail party analogy?

You may have a chance at earning someone’s attention if they step in mid-conversation if the topic happens to be of interest to them. But your chances of earning their attention are much better if you talk directly to them about something they care about. This translates to the experiences consumers are having online with your brand. Behavioral data that informs lenders when their consumers are visiting mortgage-related websites can help “fill in the blanks” of information about clients and prospects to help you better understand their needs.

Meet qualified leads and current customers where they are. Today’s homebuyers are in-market for what you are offering, and they’re signaling (through comparison shopping and engagement) that now is the time to give them the information they need. Marketers that embrace external data like intent-based behavior, can meet consumers where they are to create well-tailored and well-timed online experiences that meet consumer’s high expectations and drive positive outcomes for the business.

Keeping preferences and permissions in mind, mortgage marketers can shift from only knowing and using static, personal information to responding to actions and signals like page views, form submissions, sign-ups, etc. Lenders can improve on recapture rates by using consumer predictive data to determine when a borrower is likely to be mortgage shopping, and marketing to them with the right content, at the right time.

This behavioral data can inform lenders when their consumers are visiting mortgage-related websites, giving them the ability to better time their engagements, increase customer retention and capitalize on new acquisition opportunities.

Direct mail response rates, for example, are typically two to three times higher for consumers flagged as in-market versus those who are not. And a recent Forrester study suggests companies utilizing consumer insight tools increase customer engagement and consistently close new business, resulting in as much as a 191% ROI over three years. Our job as mortgage professionals is to help consumers when and how they need us.

This is especially important in a seemingly perpetual pandemic market where behaviors of both consumers and those in the housing industry are changing. Partnering with fintech companies that provide behavioral data can add value by informing lenders when their consumers are visiting mortgage-related websites, and lenders can see which of their consumers are in-market, approximately 100 days prior to a credit trigger or an MLS trigger and up to 180 days before a closed loan. These shopping signals are the earliest signs available indicating a customer has started their mortgage shopping journey. The investments made into marketing automation systems provide lenders the capabilities to customize messaging and marketing campaigns to individual consumers. Lenders also have the opportunity to substantially improve customer experiences by leveraging behavioral insights.

Combining privacy, consumer preference and the Golden Rule of Data — treating consumer data like you would want your own data treated — are the most critical parts of providing an exceptional customer experience. Marketers can be empowered to provide interactions when consumers want them most, while protecting the consumers’ data.

Today’s marketers face greater competition than ever to grow their customer base and retain existing customers. The new market demands that we create value for customers by providing them with timely and relevant services and information based upon their needs at the exact moment they need it.

The correct use of behavioral data can enable marketers to create exceptional consumer experiences. Marketers willing to utilize the latest tools to understand consumers’ online shopping behavior, to look to actual intent rather than relying solely on modeled data and educated guesses based on static demographic segmentation, can improve consumer experiences and drive retention and ROI.

This was originally featured in the March Issue of HousingWire Magazine. To read the full issue, click here.

Natalie Mullen is the market leader of mortgage and banking at Jornaya.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this story:
Brena Nath at bnath@housingwire.com

The post Are shopping signals the secret to mortgage marketing? appeared first on HousingWire.

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Mathematicians use AI to identify emerging COVID-19 variants

Scientists at The Universities of Manchester and Oxford have developed an AI framework that can identify and track new and concerning COVID-19 variants…

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Scientists at The Universities of Manchester and Oxford have developed an AI framework that can identify and track new and concerning COVID-19 variants and could help with other infections in the future.

Credit: source: https://phil.cdc.gov/Details.aspx?pid=23312

Scientists at The Universities of Manchester and Oxford have developed an AI framework that can identify and track new and concerning COVID-19 variants and could help with other infections in the future.

The framework combines dimension reduction techniques and a new explainable clustering algorithm called CLASSIX, developed by mathematicians at The University of Manchester. This enables the quick identification of groups of viral genomes that might present a risk in the future from huge volumes of data.

The study, presented this week in the journal PNAS, could support traditional methods of tracking viral evolution, such as phylogenetic analysis, which currently require extensive manual curation.

Roberto Cahuantzi, a researcher at The University of Manchester and first and corresponding author of the paper, said: “Since the emergence of COVID-19, we have seen multiple waves of new variants, heightened transmissibility, evasion of immune responses, and increased severity of illness.

“Scientists are now intensifying efforts to pinpoint these worrying new variants, such as alpha, delta and omicron, at the earliest stages of their emergence. If we can find a way to do this quickly and efficiently, it will enable us to be more proactive in our response, such as tailored vaccine development and may even enable us to eliminate the variants before they become established.”

Like many other RNA viruses, COVID-19 has a high mutation rate and short time between generations meaning it evolves extremely rapidly. This means identifying new strains that are likely to be problematic in the future requires considerable effort.

Currently, there are almost 16 million sequences available on the GISAID database (the Global Initiative on Sharing All Influenza Data), which provides access to genomic data of influenza viruses.

Mapping the evolution and history of all COVID-19 genomes from this data is currently done using extremely large amounts of computer and human time.

The described method allows automation of such tasks. The researchers processed 5.7 million high-coverage sequences in only one to two days on a standard modern laptop; this would not be possible for existing methods, putting identification of concerning pathogen strains in the hands of more researchers due to reduced resource needs.

Thomas House, Professor of Mathematical Sciences at The University of Manchester, said: “The unprecedented amount of genetic data generated during the pandemic demands improvements to our methods to analyse it thoroughly. The data is continuing to grow rapidly but without showing a benefit to curating this data, there is a risk that it will be removed or deleted.

“We know that human expert time is limited, so our approach should not replace the work of humans all together but work alongside them to enable the job to be done much quicker and free our experts for other vital developments.”

The proposed method works by breaking down genetic sequences of the COVID-19 virus into smaller “words” (called 3-mers) represented as numbers by counting them. Then, it groups similar sequences together based on their word patterns using machine learning techniques.

Stefan Güttel, Professor of Applied Mathematics at the University of Manchester, said: “The clustering algorithm CLASSIX we developed is much less computationally demanding than traditional methods and is fully explainable, meaning that it provides textual and visual explanations of the computed clusters.”

Roberto Cahuantzi added: “Our analysis serves as a proof of concept, demonstrating the potential use of machine learning methods as an alert tool for the early discovery of emerging major variants without relying on the need to generate phylogenies.

“Whilst phylogenetics remains the ‘gold standard’ for understanding the viral ancestry, these machine learning methods can accommodate several orders of magnitude more sequences than the current phylogenetic methods and at a low computational cost.”


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International

There will soon be one million seats on this popular Amtrak route

“More people are taking the train than ever before,” says Amtrak’s Executive Vice President.

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While the size of the United States makes it hard for it to compete with the inter-city train access available in places like Japan and many European countries, Amtrak trains are a very popular transportation option in certain pockets of the country — so much so that the country’s national railway company is expanding its Northeast Corridor by more than one million seats.

Related: This is what it's like to take a 19-hour train from New York to Chicago

Running from Boston all the way south to Washington, D.C., the route is one of the most popular as it passes through the most densely populated part of the country and serves as a commuter train for those who need to go between East Coast cities such as New York and Philadelphia for business.

Veronika Bondarenko captured this photo of New York’s Moynihan Train Hall. 

Veronika Bondarenko

Amtrak launches new routes, promises travelers ‘additional travel options’

Earlier this month, Amtrak announced that it was adding four additional Northeastern routes to its schedule — two more routes between New York’s Penn Station and Union Station in Washington, D.C. on the weekend, a new early-morning weekday route between New York and Philadelphia’s William H. Gray III 30th Street Station and a weekend route between Philadelphia and Boston’s South Station.

More Travel:

According to Amtrak, these additions will increase Northeast Corridor’s service by 20% on the weekdays and 10% on the weekends for a total of one million additional seats when counted by how many will ride the corridor over the year.

“More people are taking the train than ever before and we’re proud to offer our customers additional travel options when they ride with us on the Northeast Regional,” Amtrak Executive Vice President and Chief Commercial Officer Eliot Hamlisch said in a statement on the new routes. “The Northeast Regional gets you where you want to go comfortably, conveniently and sustainably as you breeze past traffic on I-95 for a more enjoyable travel experience.”

Here are some of the other Amtrak changes you can expect to see

Amtrak also said that, in the 2023 financial year, the Northeast Corridor had nearly 9.2 million riders — 8% more than it had pre-pandemic and a 29% increase from 2022. The higher demand, particularly during both off-peak hours and the time when many business travelers use to get to work, is pushing Amtrak to invest into this corridor in particular.

To reach more customers, Amtrak has also made several changes to both its routes and pricing system. In the fall of 2023, it introduced a type of new “Night Owl Fare” — if traveling during very late or very early hours, one can go between cities like New York and Philadelphia or Philadelphia and Washington. D.C. for $5 to $15.

As travel on the same routes during peak hours can reach as much as $300, this was a deliberate move to reach those who have the flexibility of time and might have otherwise preferred more affordable methods of transportation such as the bus. After seeing strong uptake, Amtrak added this type of fare to more Boston routes.

The largest distances, such as the ones between Boston and New York or New York and Washington, are available at the lowest rate for $20.

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International

The next pandemic? It’s already here for Earth’s wildlife

Bird flu is decimating species already threatened by climate change and habitat loss.

I am a conservation biologist who studies emerging infectious diseases. When people ask me what I think the next pandemic will be I often say that we are in the midst of one – it’s just afflicting a great many species more than ours.

I am referring to the highly pathogenic strain of avian influenza H5N1 (HPAI H5N1), otherwise known as bird flu, which has killed millions of birds and unknown numbers of mammals, particularly during the past three years.

This is the strain that emerged in domestic geese in China in 1997 and quickly jumped to humans in south-east Asia with a mortality rate of around 40-50%. My research group encountered the virus when it killed a mammal, an endangered Owston’s palm civet, in a captive breeding programme in Cuc Phuong National Park Vietnam in 2005.

How these animals caught bird flu was never confirmed. Their diet is mainly earthworms, so they had not been infected by eating diseased poultry like many captive tigers in the region.

This discovery prompted us to collate all confirmed reports of fatal infection with bird flu to assess just how broad a threat to wildlife this virus might pose.

This is how a newly discovered virus in Chinese poultry came to threaten so much of the world’s biodiversity.

H5N1 originated on a Chinese poultry farm in 1997. ChameleonsEye/Shutterstock

The first signs

Until December 2005, most confirmed infections had been found in a few zoos and rescue centres in Thailand and Cambodia. Our analysis in 2006 showed that nearly half (48%) of all the different groups of birds (known to taxonomists as “orders”) contained a species in which a fatal infection of bird flu had been reported. These 13 orders comprised 84% of all bird species.

We reasoned 20 years ago that the strains of H5N1 circulating were probably highly pathogenic to all bird orders. We also showed that the list of confirmed infected species included those that were globally threatened and that important habitats, such as Vietnam’s Mekong delta, lay close to reported poultry outbreaks.

Mammals known to be susceptible to bird flu during the early 2000s included primates, rodents, pigs and rabbits. Large carnivores such as Bengal tigers and clouded leopards were reported to have been killed, as well as domestic cats.

Our 2006 paper showed the ease with which this virus crossed species barriers and suggested it might one day produce a pandemic-scale threat to global biodiversity.

Unfortunately, our warnings were correct.

A roving sickness

Two decades on, bird flu is killing species from the high Arctic to mainland Antarctica.

In the past couple of years, bird flu has spread rapidly across Europe and infiltrated North and South America, killing millions of poultry and a variety of bird and mammal species. A recent paper found that 26 countries have reported at least 48 mammal species that have died from the virus since 2020, when the latest increase in reported infections started.

Not even the ocean is safe. Since 2020, 13 species of aquatic mammal have succumbed, including American sea lions, porpoises and dolphins, often dying in their thousands in South America. A wide range of scavenging and predatory mammals that live on land are now also confirmed to be susceptible, including mountain lions, lynx, brown, black and polar bears.

The UK alone has lost over 75% of its great skuas and seen a 25% decline in northern gannets. Recent declines in sandwich terns (35%) and common terns (42%) were also largely driven by the virus.

Scientists haven’t managed to completely sequence the virus in all affected species. Research and continuous surveillance could tell us how adaptable it ultimately becomes, and whether it can jump to even more species. We know it can already infect humans – one or more genetic mutations may make it more infectious.

At the crossroads

Between January 1 2003 and December 21 2023, 882 cases of human infection with the H5N1 virus were reported from 23 countries, of which 461 (52%) were fatal.

Of these fatal cases, more than half were in Vietnam, China, Cambodia and Laos. Poultry-to-human infections were first recorded in Cambodia in December 2003. Intermittent cases were reported until 2014, followed by a gap until 2023, yielding 41 deaths from 64 cases. The subtype of H5N1 virus responsible has been detected in poultry in Cambodia since 2014. In the early 2000s, the H5N1 virus circulating had a high human mortality rate, so it is worrying that we are now starting to see people dying after contact with poultry again.

It’s not just H5 subtypes of bird flu that concern humans. The H10N1 virus was originally isolated from wild birds in South Korea, but has also been reported in samples from China and Mongolia.

Recent research found that these particular virus subtypes may be able to jump to humans after they were found to be pathogenic in laboratory mice and ferrets. The first person who was confirmed to be infected with H10N5 died in China on January 27 2024, but this patient was also suffering from seasonal flu (H3N2). They had been exposed to live poultry which also tested positive for H10N5.

Species already threatened with extinction are among those which have died due to bird flu in the past three years. The first deaths from the virus in mainland Antarctica have just been confirmed in skuas, highlighting a looming threat to penguin colonies whose eggs and chicks skuas prey on. Humboldt penguins have already been killed by the virus in Chile.

A colony of king penguins.
Remote penguin colonies are already threatened by climate change. AndreAnita/Shutterstock

How can we stem this tsunami of H5N1 and other avian influenzas? Completely overhaul poultry production on a global scale. Make farms self-sufficient in rearing eggs and chicks instead of exporting them internationally. The trend towards megafarms containing over a million birds must be stopped in its tracks.

To prevent the worst outcomes for this virus, we must revisit its primary source: the incubator of intensive poultry farms.

Diana Bell does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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