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China Devalued the Yuan: What Does It Mean to the Mortgage Market?

National Mortgage Professional
Oct 27, 2015

The hottest topic in the financial industry is the Chinese government's surprise decision to devalue their currency by almost two percent. China's central bank recently allowed the yuan to drop sharply against the U.S. dollar. This ignited the currency's largest two-day decline in decades. China is the second-largest economy in the world, and it was predicted that it would surpass the United States as the largest economy in the world at some point this century.

What does this mean for the mortgage industry? As employment returns to a better level, it gives the Federal Reserve another reason to delay raising interest rates. But as the U.S. dollar strengthens and makes it tougher for U.S. corporations to strive in the world market because Chinese goods are cheaper. Which creates a domino effect because this leads to the fed to holding off on raising rates.

Yahoo Finance reports that the Mortgage Bankers Association (MBA) released its report on mortgage applications Wednesday, Aug. 12, observing a week-over-week increase of 0.1 percent in the group's seasonally adjusted composite index for the week ending Aug. 7. That trailed an increase of 4.7 percent for the week ending July 31st. Mortgage loan rates moved erratically on all types of loans last week.

This is a blessing in disguise, Right when everyone was thinking our rates would increase, it turns out that rates may decrease again. This is the perfect time to kick your mortgage marketing campaigns to high gear.

Some of you might say, how do I market to these people? Well listen closely … you do a little thing called “multi-channel” marketing which means getting in touch with these people in multiple ways. One of the most successful multi-channel campaigns our clients are using is called direct mail voice. It’s a direct mail campaign combined with personalized voicemail. How does this work? Instead of doing your regular direct mail campaign, add a little something special. That something special is called direct mail voice. Leave your client a personalized message asking them to call you back. This happens at the beginning, and again at the end of your direct mail voice campaign. The beauty of that is their phone doesn't ring. The response rates for this multi-channel campaign have added a new dimension to the already solid mail campaign.

TagQuest customer spotlight: Michael D., Colorado
Each month, TagQuest speaks with its clients to see how their campaigns are going. Here’s what they heard from Michael D. in Colorado.

Marketing method: Direct mail voice
Volume: 10,000 pieces
Results: 1.5 percent response rate from the mail—another one percent response from follow up voicemails equaling a 2.5 percent total response.

Highlights of the campaign that worked well …
“The personalized voicemails added the extra magic to increase my response rates.”

Highlights of the campaign that may appeal to others in the industry …
“Every time my phone rang, at the other end, was an interested and qualified person. Cha-ching!”

Based in Medford, Ore., TagQuest Inc. is a full-service marketing firm developed throughout the ever-changing mortgage industry. Utilizing industry knowledge, marketing expertise, and technology we implement any or all aspects of your marketing and/or advertising campaigns. With a proven track record, more than 10 years in business, and decades of experience TagQuest knows what it takes to produce unprecedented results in today’s fast-paced mortgage environment. For more information, call (888) 717-8980 or visit

This article originally appeared in the September 2015 print edition of National Mortgage Professional Magazine. 

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