mortgage rates have a big impact on conversion rates and what we've seen is over the last couple of years as mortgage rates have risen uh decrease overall in conversion there's a few important nuances one thing that we've noticed is lead volumes have not gone down so as rates go up lead volumes really are not impacted too much there's still plenty of activity and interest out there the conversion rates go down depending on the the increase in rates can go down as much as 30 40% in aggregate month over month that's a pretty significant decline that's
pretty steep but typically what you see is if you see a 50 bit increase in mortgage rates you will see about a 20% decline in conversion rate the other important thing to note is it's not necessarily about where the rate is it's about the trend of the rates so as rates are going up that's when you really start to see the degradation once rates flatten out you see a recovery in that overall conversion and then as rates move down they don't need to move down they just need to stay flat or start moving down then
you begin to see an increase in a recovery in that conversion rate and that really brings me to the third Point here is that as interest rates fluctuate and conversion rates fluctuate inversely to those ultimately those things tend to stay flat over time so as much as we panic in the near- term with lower conversion rates higher rates ultimately as long as there's a relatively steady Trend in rates we'll see the same thing in conversion rates and as long as we can all take the long rev viw which is not always easy to do we
will be fine
