Mail volume for mortgage and home equity loans declined 30% in 2007, compared to the previous year, according to the media monitoring service Mintel Comperemedia.
Lenders mailed approximately 2.6 billion direct mail pieces last year, down from 3.7 billion pieces in 2006.
“People have tightened up spending, home sales are down and there’s not a lot of faith in the market. It makes sense that lenders have backed off direct mail advertising for the time being,” said in a statement Farah Huq, market research manager. “I wouldn’t expect to see dramatic increases in direct mail until the market has stabilized.”
Mailings for mortgage offers fell by more than 34% in 2007 with 1.7 million offers mailed, down from 2.6 million pieces in 2006. Direct mail campaigns for adjustable rate mortgages plunged 72% last year. The volume of mail for home equity lines of credit dropped to 930 million pieces, reflecting a 21% decline last year. Not surprisingly, the volume of mail for fixed rate financing offers increased 14% in 2007.
Eight out of the 10 top mortgage and home equity mailers reduced total mail volume during 2007. Half cut back direct mail circulation by more than 60% last year, according to Mintel Comperemedia.
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