Why Purchase Transactions Dominate in a High-Rate Market — and How Agencies Can Capture More Business

The title industry has always been tied to the ebbs and flows of the mortgage market. When interest rates are low, refinance transactions dominate. But in today’s environment of higher rates, refinances have slowed to a trickle — leaving purchase transactions as the lifeblood of the industry. For agencies, adapting to this shift is not optional. It’s survival.

The Impact of High Rates

When rates rise, homeowners are far less likely to refinance into higher payments. Instead, refinance activity dries up almost overnight. According to industry data, refinances have fallen by more than 70% compared to peak years. This has shifted the balance of work for title agencies: purchase transactions now account for nearly 80% of activity in many markets.

Why Purchases Are Different

Unlike refinances, purchase transactions:

• Involve multiple parties (buyers, sellers, agents, lenders, attorneys).
• Require local knowledge of recording requirements, tax prorations, and municipal nuances.
• Often carry tighter deadlines and higher emotional stakes for consumers.

Agencies that are not equipped to handle these complexities risk delays, errors, and frustrated clients.

Opportunities for Growth

While challenging, the pivot toward purchases opens up new opportunities:

• Build deeper realtor relationships. Agents are central to purchase transactions, and agencies that prove reliable will earn repeat referrals.
• Expand nationally. Many brokerages and lenders operate across state lines, and agencies that can handle multi-state deals will stand out.
• Leverage technology. Purchase closings demand efficiency, transparency, and communication — all of which can be delivered through platforms like Zynova.

How Zynova Helps Agencies Capture Purchase Business

Zynova enables agencies to expand into new markets without needing 51 licenses. By plugging into the national network, agencies can serve their local clients even when deals cross borders — retaining relationships and revenue. The platform also centralizes communication and compliance, making complex purchases faster and more secure.

The Bottom Line

High rates may have slowed refinances, but they’ve also highlighted the importance of purchase transactions. Agencies that lean into this reality, strengthen their realtor and lender partnerships, and adopt technology-driven solutions will not just survive — they’ll thrive.