Consumers Reflect on “The New Normal” Post-Pandemic

­ICE Mortgage TechnologyTM, part of Intercontinental Exchange, Inc., announced the results of the 2022 Borrower Insights Survey. Reports show that the COVID pandemic has transformed the home buying market permanently and drastically, changing the way borrowers use technology and what they expect from a lender.

Consumers are relocating to find more space and to work remotely, and after two years of video conferencing, an estimated three-quarters think an online mortgage process is easier than an in-person process.

Data from the December 2021 survey 1,000 borrowers and 1,000 renters, describe a changed society in which the pandemic has accelerated work and technology trends already in progress. Findings indicate that adapting to a new way of life due to COVID, along with the rapid emergence of virtual experiences and remote working, borrowers expect the same digital experience when purchasing a home.

“What we’ve learned over the last two years is our lives will never go back to the way they were,” said Joe Tyrrell, President of ICE Mortgage Technology. “Borrowers are more accustomed to ordering everything online from groceries to appliances to automobiles. It’s no surprise that when asked, they prefer to go virtual with home buying as well. As an industry, we need to continue to deploy digital offerings – but not at the expense of relationships, which are still an important factor in choosing a lender.”

According to the survey, the nation is on the move as people seek work, looking for new kinds of employment and a healthy work-life balance. Borrowers cited several reasons for buying a home, with a considerable 38% citing the need for more space.

The pandemic and remote work are also driving mobility. Some 26% of borrowers who have gone through the mortgage process in the past two years say they are considering selling their home due to a job change or relocation. Of those respondents, 60% say the ability to work remotely is the main reason for their job change and/or relocation.

Millennial and Gen Z borrowers were most strongly influenced by digital offerings like online applications, online portals for uploading documents, and online portals for signing and notarizing documents.

Particularly for Millennial and Gen Z borrowers, mobile apps were just as big an influence on the choice of a lender. Some 61% of Millennials and 65% of Gen Z borrowers said mobile apps influenced their choice–significantly higher than the 46% figure for borrowers overall.

These figures are signaling a generational shift, as 57% Baby boomers were least likely to say that online applications, document upload portals and portals for signing and notarizing documents influenced their lender choice. Meanwhile, 81% reported that the availability of a mobile app did not influence their decision on a lender.

To download the ICE Mortgage Technology Borrower Insights Survey eBook, and for more information, click here.