In the News

The housing market in 2025 presents a complex landscape for mortgage professionals. From inventory shortages impacting homebuying options to technological advancements in mortgage services and the widening gap between rental costs and wage growth, understanding these dynamics is crucial for advising clients effectively.

Zillow CEO Highlights Inventory Shortages as Primary Housing Market Challenge

Read the full story → TheStreet

Zillow CEO Jeremy Wacksman has identified a severe shortage of available homes as the primary obstacle for prospective buyers in the current housing market. Despite concerns about volatile mortgage rates, Wacksman emphasizes that the lack of inventory is the most critical issue, with the U.S. housing market estimated to be short by 4.5 million homes.

This shortage is exacerbated by regulatory hurdles and affordability issues, which have stymied growth in home supplies. High mortgage rates, now over 7%, deter homeowners from selling, further limiting available homes. Even if interest rates are cut, buyers still face limited choices, potentially pushing prices higher and offsetting any benefits from rate reductions.

Loan Officer Insight: Educate clients on the current inventory challenges and explore alternative financing options or property types that may be more readily available. Staying informed about local market conditions can help clients navigate these obstacles effectively.

United Wholesale Mortgage Introduces AI-Powered Virtual Assistant “MIA”

Read the full story → Detroit Free Press

United Wholesale Mortgage (UWM) has launched “MIA,” an AI-powered virtual assistant designed to enhance communication between mortgage brokers and clients. MIA can initiate calls, provide loan updates, and answer common questions, streamlining the mortgage process and improving client engagement.

This technological advancement reflects a broader trend in the mortgage industry toward automation and AI integration, aiming to increase efficiency and customer satisfaction. By leveraging AI, mortgage professionals can focus more on complex client needs while routine tasks are handled by virtual assistants.

Loan Officer Insight: Consider adopting AI tools like MIA to improve client communication and operational efficiency. Staying ahead with technology can provide a competitive edge in the evolving mortgage landscape.

Rental Prices Outpace Wage Growth, Exacerbating Affordability Issues

Read the full story → Scotsman Guide

Recent data indicates that rental prices have increased significantly since April 2020, with monthly rent for a typical apartment rising by 28.7% to $1,858 and single-family home rents increasing by 42.9% to $2,256. In contrast, median household income has grown by only 22.5% to around $82,000 in the same period.

This disparity between rent growth and wage increases has made it more challenging for renters to save for down payments and transition to homeownership. In several metropolitan areas, renters need to earn over $100,000 to afford median rents, highlighting the growing affordability crisis.

Loan Officer Insight: Assist clients in exploring affordable housing options and financial planning strategies to overcome the challenges posed by rising rents and stagnant wages. Providing resources for budgeting and saving can help clients achieve homeownership goals.

Real Estate-Related Stock Performance (as of May 16, 2025)

Summary: Real estate-related stocks have shown modest gains, reflecting investor optimism amid technological advancements and ongoing discussions about housing affordability.

Loan Officer’s Perspective: Strategic Considerations

• Address Inventory Challenges: Guide clients through limited housing options by exploring new construction, alternative locations, or different property types.
• Embrace Technological Tools: Utilize AI-powered assistants like MIA to enhance client communication and streamline the mortgage process.
• Support Renters Transitioning to Homeownership: Provide financial planning resources to help renters overcome affordability barriers and prepare for purchasing a home.

For additional resources and strategies to support your referral partners and clients effectively, visit DailySuccessPlan.com.

Recent developments in the mortgage industry highlight the evolving landscape that professionals must navigate. From projected interest rate trends to shifts in borrower behavior and regulatory overhauls, understanding these changes is crucial for providing informed guidance to clients.

Long-Term Interest Rate Forecasts Suggest Gradual Decline

Read the full story → Norada Real Estate

Economic analysts project a gradual decline in interest rates over the next decade. The Congressional Budget Office anticipates the federal funds rate to decrease to approximately 3.7% by late 2025 and further to 3.4% by late 2026. Goldman Sachs forecasts a similar trajectory, with rates potentially reaching 3.5% by 2026.

These projections are based on expectations of moderating inflation and a stabilizing economy. However, unforeseen economic events could alter this outlook.

Loan Officer Insight: Educate clients on the importance of timing in securing mortgage rates. While a gradual decline is anticipated, current rates may still offer favorable conditions compared to potential future fluctuations.

HELOC Usage Increases Amid Rising Home Equity

Read the full story → Wolf Street

Homeowners are increasingly turning to Home Equity Lines of Credit (HELOCs) as a financing option. In Q1 2025, HELOC balances rose by 1.6% quarter-over-quarter and 6.9% year-over-year, totaling $402 billion. This trend reflects homeowners’ desire to access cash without refinancing their low-interest primary mortgages.

While HELOCs offer flexibility, they also introduce additional financial obligations. Borrowers must be cautious of over-leveraging, especially in an environment where interest rates, though projected to decline, remain relatively high.

Loan Officer Insight: Advise clients on the prudent use of HELOCs, ensuring they understand the terms and potential risks. Assess their financial stability and ability to manage additional debt before proceeding.

CFPB Rescinds Nearly 70 Policies, Impacting Mortgage Guidance

Read the full story → Scotsman Guide

The Consumer Financial Protection Bureau (CFPB) announced the rescission of 67 policy statements and guidance documents, many of which pertain to the mortgage industry. This move aims to reduce regulatory burdens and promote clarity.

Key rescinded policies include those related to debt collection practices, oversight of financial services to military members, and anti-discrimination lending standards. The CFPB stated that it will issue new guidance only when necessary and will focus on minimizing compliance costs.

Loan Officer Insight: Stay informed about regulatory changes to ensure compliance and adapt business practices accordingly. Engage with industry associations and legal counsel to understand the implications of these policy shifts.

Real Estate-Related Stock Performance (as of May 15, 2025)

Summary: The real estate sector experienced modest declines, reflecting investor caution amid regulatory changes and evolving market conditions.

Loan Officer’s Perspective: Strategic Considerations

• Client Education: Inform clients about projected interest rate trends and the potential benefits of current rates.
• HELOC Counseling: Discuss the pros and cons of HELOCs, ensuring clients make informed decisions based on their financial situations.
• Regulatory Awareness: Monitor CFPB policy changes to maintain compliance and adjust business practices as needed.

For additional resources and strategies to support your referral partners and clients effectively, visit DailySuccessPlan.com.

The real estate and mortgage sectors are experiencing notable shifts in May 2025. California cities dominate the list of the most expensive housing markets, mortgage demand shows signs of recovery despite higher interest rates, and mortgage delinquencies have seen a slight uptick in the first quarter. These developments carry significant implications for mortgage professionals and borrowers alike.

California Cities Lead as Most Expensive Housing Markets

Read the full story → New York Post

A recent report by the National Association of Realtors® highlights that California cities continue to top the list of the most expensive housing markets in the U.S. San Jose leads with a median sale price of $2.02 million in Q1 2025, marking a 9.8% annual increase. Anaheim and San Francisco follow at $1.45 million and $1.32 million, respectively. Honolulu is the only non-California city in the top five, with a median price of $1.16 million. Other California cities, including Salinas, San Luis Obispo, Oxnard, and Los Angeles, also made the list.

The soaring prices are attributed to persistent underproduction of new homes, resulting in limited inventory and increased competition among affluent buyers. Homeownership remains out of reach for many in these high-cost areas, contrasting with more affordable and equitable markets in the Midwest.

Loan Officer Insight: In high-priced markets, affordability challenges may push potential buyers to consider alternative financing options or look into more affordable regions. Stay informed about regional market trends to better advise clients on their homebuying decisions.

Mortgage Demand Rebounds Despite Higher Interest Rates

Read the full story → CNBC

Mortgage demand from homebuyers has shown signs of recovery, even as interest rates remain elevated. This resurgence indicates that buyers are adapting to the current rate environment, possibly driven by expectations of future rate increases or a desire to secure homes amid limited inventory.

The Mortgage Bankers Association reports that purchase applications have increased, suggesting renewed confidence among buyers. However, refinancing activity remains subdued due to the higher rate landscape.

Loan Officer Insight: Educate clients on the importance of rate locks and explore loan products that offer flexibility in the current market. Highlighting the benefits of acting promptly can help clients make informed decisions.

Slight Increase in Mortgage Delinquencies in Q1 2025

Read the full story → Mortgage Bankers Association

The Mortgage Bankers Association reports a slight increase in mortgage delinquencies in the first quarter of 2025. While the overall delinquency rate remains low, the uptick serves as a reminder of the ongoing financial challenges some borrowers face.

Factors contributing to the rise include economic uncertainties and the cumulative impact of higher interest rates on household budgets. It’s essential for mortgage professionals to monitor these trends and provide support to clients who may be at risk.

Loan Officer Insight: Proactively reach out to clients to discuss their financial health and offer solutions such as loan modifications or refinancing options. Early intervention can prevent delinquencies and foster long-term client relationships.

Real Estate-Related Stock Performance (as of May 14, 2025)

Summary: Real estate-related stocks have shown modest gains, reflecting investor optimism amid stabilizing housing markets and resilient mortgage demand.

Loan Officer’s Perspective: Strategic Considerations

• Stay Informed on Regional Markets: Understanding local housing trends enables you to provide tailored advice to clients considering high-cost areas.
• Educate Clients on Rate Strategies: Discuss the benefits of rate locks and adjustable-rate mortgages to help clients navigate the current interest rate environment.
• Monitor Client Financial Health: Regular check-ins can identify potential financial stress early, allowing for timely interventions and support.

For additional resources and strategies to support your referral partners and clients effectively, visit DailySuccessPlan.com.

Adaptive reuse housing conversions are gaining traction as a creative response to affordability gaps in today’s market. A compelling example comes from South Carolina, where a 24-year-old investor is transforming a $2 million motel into a 40-unit apartment complex aimed at cost-conscious renters. At the same time, property tax hikes are creating headwinds for buyers in several key metros, while mortgage rates remain steady, offering an opportunity for strategic rate locks. Together, these developments illustrate both the innovation and constraints shaping today’s real estate landscape.

Adaptive Reuse Projects Provide Affordable Housing Solutions

Read the full story → Business Insider

Corvon Burgess, a 24-year-old real estate investor from South Carolina, is converting a former motel into 40 affordable studio apartments. The $2 million purchase is being funded by combining traditional financing and community redevelopment support. His goal is to deliver clean, modern, income-accessible housing in a market where median rents have become unattainable for many.

This is a prime example of adaptive reuse housing conversions, where non-residential structures—such as hotels or commercial buildings—are reimagined as housing solutions. The project is already generating attention for its innovative model and for demonstrating that affordability and profitability can coexist in the same venture.

The conversion isn’t just about cost savings—it’s about speed. Adaptive reuse often allows faster project completion than ground-up development, which can make a difference in underserved rental markets. In Corvon’s case, many of the units will be move-in ready within months, not years.

Loan Officer Insight: Mortgage professionals should watch for growth in the adaptive reuse space. These projects may involve nontraditional financing or partnerships with municipalities, meaning there’s opportunity to develop products and referral partnerships that cater to this trend. If your market has aging hotels, offices, or vacant commercial space, someone is planning to repurpose them—be ready to support those deals.

Property Tax Burdens Spike in Key Housing Markets

Read the full story → Realtor.com

While attention is often focused on home prices and interest rates, property taxes can quietly erode affordability—and they’re rising fast in many metros. Tampa, FL, saw a staggering 23.3% property tax increase between 2021 and 2023, the sharpest jump among the top 10 metros tracked. Buffalo, NY, and Chicago, IL, followed closely behind.

The increase in property taxes is being driven by rising home valuations, pandemic-era budget pressures on local governments, and infrastructure funding needs. Buyers often focus on their mortgage payment, but in these metros, rising tax bills can add hundreds of dollars monthly to their housing costs.

This has real consequences for loan eligibility and debt-to-income (DTI) ratios. A borrower might qualify for a $2,400 mortgage payment, but if local taxes suddenly add $300 or more to escrow estimates, it can push them over the line—or simply make a deal feel unaffordable.

Loan Officer Insight: Educate clients early in the process about property tax trends in your local markets. Use this as a value-add differentiator in your preapproval process. For example, offer tax projections in your buyer consultations or share a comparison of nearby counties with lower rates. It’s also a great talking point in your Realtor partnership meetings—help agents prep buyers with the full cost picture.

Mortgage Rates Hold Steady, Creating Window of Opportunity

Read the full story → Forbes

Mortgage rates remain unchanged to close out the first full week of May. As of May 9, the 30-year fixed mortgage rate is holding at 6.85%, while the 15-year fixed rate is stable at 6.10%. This consistency offers buyers and refinancers a brief moment of certainty amid an otherwise fluctuating market.

This flatline in rates may be tied to uncertainty around inflation and economic growth. With the Fed taking a cautious stance and the bond market reacting to trade news and employment data, rates have held their ground. For loan officers and borrowers, that stability is something to work with.

The key opportunity here is timing. Buyers who’ve been sitting out due to volatility now have a clearer picture of what their financing will look like. And for those already pre-approved, a small shift in pricing or lender fees could make all the difference in monthly affordability.

Loan Officer Insight: This is a great week to revisit older leads who went quiet due to rate shock. Use the messaging: “Rates haven’t moved—let’s reassess your numbers.” It’s also a strong lock-and-shop window for borrowers with tight DTI scenarios. Use certainty to your advantage, because if bond yields jump again, today’s rates might be gone tomorrow.

Real Estate-Related Stock Performance (as of May 9, 2025)

Summary: Lender stocks like Rocket and UWM saw strong gains today, likely tied to positive mortgage rate sentiment and strong Q1 earnings. Homebuilder stocks were mixed, reflecting regional inventory pressures. Watch Redfin—its 3.42% gain suggests investor confidence in its transaction pipeline heading into summer.

Loan Officer’s Perspective: Take Action on Stability and Affordability

• Spotlight Adaptive Reuse: Ask your agents and builder partners if any redevelopment deals are happening locally. Get in front of this trend early and explore financing that aligns with these projects.
• Get Tax Smart: Help clients understand that taxes aren’t static. Offer tools or charts that show how taxes change by area, and weave this into your affordability conversations.
• Capitalize on Rate Consistency: When the market offers predictability, it’s your moment to shine. Use consistent rates as a re-engagement hook—“Still want to buy? Numbers are better than last month.”

Want to take your buyer consultations and lead follow-up systems to the next level?

Visit DailySuccessPlan.com for real-world templates and strategies from top-producing LOs.

U.S. Treasury yields climbed as markets reacted to President Trump’s announcement of a potential trade agreement with the United Kingdom, signaling a possible easing of global trade tensions. Meanwhile, the Federal Housing Finance Agency (FHFA) disclosed that foreign nationals had been criminally referred to the Department of Justice for unauthorized employment at Fannie Mae and Freddie Mac. Additionally, initial jobless claims fell to 228,000, indicating a resilient labor market. These developments present both opportunities and challenges for mortgage professionals navigating the current economic landscape.

U.S. Treasury Yields Climb on Trade Deal Hopes

Read the full story → CNBC

Treasury yields increased as investors responded to President Trump’s announcement of a forthcoming trade deal with the UK. The 10-year Treasury yield rose, reflecting optimism that the agreement could alleviate some of the uncertainties surrounding international trade and tariffs. This movement in yields suggests a shift in investor sentiment towards riskier assets, potentially impacting mortgage rates and borrowing costs.

Loan Officer Insight: Rising Treasury yields can lead to higher mortgage rates. Stay informed about these developments to advise clients on the timing of their loan applications and potential rate locks.

FHFA Refers Foreign Nationals at GSEs to DOJ

Read the full story → Scotsman Guide

FHFA Director Bill Pulte revealed that several foreign nationals, including individuals from North Korea and China, were found to be working at Fannie Mae and Freddie Mac under false pretenses. These individuals have been criminally referred to the Department of Justice. The disclosure raises concerns about internal controls and security measures within these government-sponsored enterprises (GSEs).

Loan Officer Insight: While this issue pertains to internal operations, it’s essential to monitor any resulting policy changes or disruptions that could affect loan processing times or underwriting guidelines.

Initial Jobless Claims Drop to 228,000

Read the full story → FXStreet

The U.S. Department of Labor reported that initial jobless claims fell to 228,000 for the week ending May 3, down from 241,000 the previous week. This decline suggests continued strength in the labor market, which is a positive indicator for the housing market and consumer confidence.

Loan Officer Insight: A robust job market supports borrower income stability, enhancing their ability to qualify for mortgages. Use this data point to reassure clients about the economic environment when discussing home financing options.

Real Estate-Related Stock Performance (as of May 8, 2025)

Summary: Real estate-related stocks experienced modest gains, buoyed by positive economic indicators and optimism surrounding international trade developments.

Loan Officer’s Perspective: Navigating Economic Signals

• Monitor Interest Rate Trends: With Treasury yields on the rise, stay proactive in advising clients about potential impacts on mortgage rates.
• Stay Informed on GSE Developments: Keep abreast of any policy changes at Fannie Mae and Freddie Mac that could affect loan processing or underwriting standards.
• Leverage Positive Employment Data: Use the decline in jobless claims to instill confidence in clients considering home purchases or refinancing.

For tools and strategies to originate more loans in any market, visit DailySuccessPlan.com.