Email became commonplace many years ago. Today, just about every business and university practices frequent communication via email. It's used as a marketing tool by many organizations. In an email statistics report, The Radicati Group, Inc. noted email is the preferred method of communication in business. It's no wonder that real estate agents are expected to have good email communication skills.

According to a report by the National Association of Realtors, 93 percent of NAR members prefer to communicate by email. More than 90 percent use email every day, either on a laptop or smartphone.

This statistic indicates a positive trend, considering more than two-thirds of people who email a real estate agent expect a response within a half hour. Many even said they think agents should respond immediately, according to Realtor.com. However, even though the majority of agents use email every day, only 20 percent reply to prospective clients within an hour after they receive an email.

Perks of Email

According to OpposingViews, there are many reasons to incorporate email into your strategy as a real estate agent. The ability to stay in touch and exchange information quickly and conveniently is something many professionals are grateful for. Plus, for someone working for themselves, having an email address is free. If you have your own website, you'll probably have to pay for the domain, but it usually comes with a small number of email addresses free of charge.

Another great benefit of communicating over email is the ability to keep records of all your exchanges. This can be helpful if a fact needs to be found again or to reread a conversation you had with a client weeks ago.

Most real estate agents prefer to communicate through email, with the majority of agents checking their email daily.

Every professional should know and practice email etiquette. Real estate agents need to take this a step further and use email as a marketing and client retention tool. Together, these skillsets can greatly contribute to gaining new clients and holding onto established ones.

Rapid Response

The no. 1 priority when it comes to emailing with current or potential clients is promptness. Clients turn to real estate agents for advice and information. Agents need to be a reliable resource for them. Prospective homebuyers usually have questions and concerns by the dozen, whether they are first-time buyers or not. A home is likely the largest and one of the most significant purchases a person makes in his or her lifetime. Agents need to be mindful of this and be courteous to clients. Prompt email responses show clients you care about their needs, inspire trust in you as their agent and can help calm anxieties they may be experiencing.

Email Etiquette

Business Insider explained there are certain rules that professionals should follow when sending an email. Since emails are written messages, it can be easy to make a grammatical or spelling error that can stand out to the recipient. Make sure to proofread each message before hitting send.

Another tip is to add the recipient last. It isn't hard to accidentally send an email before it's completed. An unfinished message can look unprofessional and the person reading it may not take you as seriously.

When phrasing your emails, make sure they sound professional. Use a clear, direct subject line and begin every email with a salutation, such as "Hi" or "Hello. The language in the body of the email should be clear and concise. Humor isn't always conveyed well over email, so it's best to avoid this during the first few exchanges.

Going Mobile

In today's fast-paced world, many people are checking their emails on mobile devices. According to a report from Movable Ink, almost half of emails are opened on a smartphone and nearly 20 percent more were opened on a tablet. Because only about a third are opened on a computer, it's important that all emails are responsive. This means they look good and are legible on mobile devices as well as on a computer screen.

This is especially important for any marketing emails. Placester explained every real estate agent should be using email as a marketing tool. Using programs like MailChimp or Constant Contact can help to design attractive, responsive emails to send to your client list. These should be a combination of promotional, informational and newsletter emails. These will keep you top of mind for your clients. Plus, the ability to share the emails could bring you even more leads.

Sharing Information

Sending newsletter and other informational emails not only keeps you top of mind with your clients but also positions you as a resource and an expert. If you have a blog, you are already generating useful content homeowners and potential homebuyers will enjoy reading. Using these emails is another way to draw more people to your blog, website and business.

When communicating with clients, there are many mediums people prefer. Direct mail, phone conversations, in-person meetings and text messages are used by many agents. However, email is one of the most important tools you can have. To ensure the best communications between you and your clients, make sure you are utilizing it to its full potential.

The housing market improved immensely over the past year and is expected to continue doing better in 2016, many experts agree. However, in this new housing landscape, many trends are emerging that home buyers and real estate agents alike should keep in mind.

Mortgage Rates

Mortgage rates have been low at the beginning of 2016, encouraging many to apply for a loan, according to the Mortgage Banker's Association ^[1]. Rates have been at historic lows for nearly a decade, with interest rates being kept at near zero. In December, that changed when the Federal Reserve began to slowly boost interest rates. Time Money^[2] explained the first increase did not initially have a big effect on mortgage interest rates, partially because it was highly anticipated and many people in the industry were aware of its likelihood. The rate hike is expected to be the first of four, each at 25 basis points. This means the possibility that mortgage rates will be affected throughout the year is greater. Realtor.com explained that, by the end of 2016, the 30-year fixed rate mortgage is expected to be 60 base points higher than it was at the end of 2015 ^[3].

Millennials

Generation Y has had many real estate professionals worried for a while, as very few of them were choosing to give up renting in favor of homeownership. However, last year saw many people from this generation enter the housing market. According to Realtor.com, millennials accounted for nearly 2 million sales - more than one-third of total purchases. Time Money explained that, while millennials aren't buying homes at the same age as their parents and grandparents, they still hold aspirations of owning a home. However, many are waiting until later in life, as they are with other traditional milestones, like marriage and starting a family. This means the population of millennial homebuyers is likely to continue growing in the coming year and beyond.

Inventory

Time Money explained another reason many millennials haven't entered the housing market is that inventory is down right now, especially at lower price points. Inventory is expected to improve in the coming year, though. Inventory grows in two ways: from houses that are put up for sale, and from new construction. Both are expected to increase in the near future. According to Realtor.com, baby boomers are reaching an age of downsizing, leading many to sell their homes and purchase smaller ones. According to National Real Estate Investor, this trend will most significantly affect the New York and San Francisco metro areas, as retirees search for more affordable housing ^[4].

At the same time, Realtor.com reported Generation X is generally doing well financially as they enter their main working years. This gives them the opportunity to upgrade by selling their current homes and buying new ones. This will boost inventory levels in the lower price range, since many of these families will be moving to better neighborhoods. Homeowners will also look into selling their homes while rates are still low, in hopes of buying property with a good rate on a new mortgage. More homes will be built in 2016, as well. Over the past few years, many builders focused on producing high-end and expensive homes, in order to make up for low numbers of employees and rising cost of land. However, as the market continues to demand more low-priced housing options, builders will respond. Realtor.com explained new home prices began to fall toward the end of 2015, and they expect the trend will continue this year.

References

1. Ahmad, Ali. Mortgage Applications Increase in Latest MBA Weekly Survey. mba.org. 01-03-16.
2. Lipka, Mitch. Predictions for the 2016 Housing Market. time.com/money. 12-20-15.
3. Smoke, Jonathan. The 5 Real Estate Trends That Will Shape 2016. realtor.com. 12-16-15.
4. Carlock, Byron. 'Emerging Trends' Study: New Market Opportunities Emerge for 2016 (Part 2). nreionline.com. 01-26-16.

The day has finally come. After months of speculation and anticipation, the Federal Reserve announced Dec. 16 a raise in short-term interest rates for the first time in almost 10 years. U.S. News & World Report said the Fed chose to make its move due to a strengthening domestic economy. Since the 2008 economic crash, the Fed has kept interest rates near zero to assist in market recovery, but the central bank believes the economy is strong enough to support rate hikes.

Interest rates will only increase to between 0.25 percent and 0.5 percent to close 2015, but many homebuyers and homeowners fear it could have horrible repercussions on their mortgages. Fortunately, this is not necessarily the case.

Will rising interest rates cause rising mortgage rates?

Unfortunately, the answer to whether rising interest rates affect mortgage rates is not so simple. Technically, the answer is yes. Edina Realty explained that a borrower loses buying power when interest rates increase, which could cause an increase in his down payments as well as what he pays per month.

Interest rates, however, are far from the only factor that could cause a change in mortgage rates. According to Realtor.Com's Chief Economist Jonathan Smoke, mortgage rates fluctuate all the time independently of interest rates. He told U.S News & World Report that mortgages change so often and vary so widely between lenders that such a small interest hike won't impinge on someone who takes the time to do his research and shop around for the right lender. The current climate will still have the right products to offer someone who puts in the time.

If the rise in interest rates does cause mortgage rates to rise, it will be by a very small amount. In NewsOk, Smoke forecasted a 0.5 percent increase in mortgage rates over the next year.

U.S. News & World Report said many of those who already own a home are likely to have 30-year fixed-rate mortgages and don't have to worry about the spike. Those who do have adjustable rate mortgages don't have a reason to fear either. If you purchased your home within the past five to seven years, then your interest rate is likely still locked, so the rate increase won't affect you. If your rate is no longer locked, experts say your payment is still likely to remain reasonable.

"The increase in the mortgage rates are going to be so tame and so controlled that (homeowners) will be able to adjust over time," Svenja Gudell, chief economist for Zillow, told U.S. News & World Report.

A look toward the future

As the economy grows stronger, experts predict the Fed will continue to raise interest rates. Scott Anderson, chief economist at San Francisco's Bank of the West, predicted to The New York Times that the economy will grow by about 2.4 percent next year, which will lead the Fed to raise interest rates three times in 2016. The spikes will be gradual, and by the end of the year Anderson predicted interest rates will be between 1 and 1.25 percent higher than they are now.

According to U.S. News & World Report, this might cause a surge in home purchases now to avoid even higher mortgage rates later on. People scrambling to buy before interest rates rise again could be good news for the economy. Steve Rick, chief economist for CUNA mutual group, told U.S. News and World report that it could lead to faster economic growth.

Still, rates will be rising so slowly that buyers don't have all that much to worry about.

"Consumers are cautious but they still have the capacity to spend," Anderson explained to the Times. "Jobs and incomes are growing, debt levels are low and gas at about $2 a gallon should help. When people realize the sky isn't falling because the Fed is raising rates, they will go back to their usual spending habits and save the day."

So what should you do?

Most likely, homebuyers should do exactly what they have always been planning to do, which is buy a home when the time is right for them. David Reiss is a law professor at Brooklyn Law School who specializes in real estate. He told Time Magazine that buyers should not let the Fed's choices frighten them too much. Part of the reason is that the interest rates already incorporate a rise in mortgage rates because the mortgage market takes the Fed's hike into account.

The second thing that all potential homebuyers need to do is breathe. Do not worry. Even if mortgage rates rise, they will do so very slowly. Do not rush into buying a home you are not ready for in anticipation of a huge spike. NewsOk suggested meeting with a mortgage broker to make a plan. The broker will help you examine your current financial situation and determine how various changes to interest rates could influence your ability to qualify for a loan in the future.

Still, it is possible that rising rates will cause you to have to settle for a smaller home or fewer amenities than you have been dreaming of. It may be wise to adjust your expectations in case the spike affects you more than you think. Focus on everything you can control, like your credit score, your debt-to-income ratio and the amount you've saved for a down payment, and make sure you place yourself in the best possible shape when applying for a loan.