August 8, 2025
2025 Mortgage and Homebuilding Trends: Permits Ease, Lenders Profit, and Fed Watch Heats Up
Today’s 2025 mortgage and homebuilding trends snapshot blends cooler single‑family permits with encouraging lender profits and a fresh twist at the Fed. Zillow reports permit pullbacks in select metros, yet overall activity remains above pre‑pandemic norms and many markets are still growing. Detroit Free Press highlights second‑quarter profits at Rocket and UWM, signaling healthier pipelines and improving efficiency. And The Basis Point explains how a temporary Fed nomination could influence policy timing into year‑end. Net takeaway: momentum is building beneath the headlines. When rates break lower, activity should accelerate. Keep your plan tight, your outreach steady, and your message confident.
Homebuilding Momentum Falters in Spots, But Many Metros Still Advance
Read the Full Story → Zillow Research
Single‑family permitting dipped in the first half of 2025, with notable declines in a handful of large metros. Builders are balancing affordability pressures, higher resale inventory, and incentives to keep sales moving.
Even so, total permitting remains above pre‑pandemic levels. More than half of the largest metros are still issuing more permits than their pre‑2020 averages. Some markets are posting gains, underscoring how local dynamics vary widely.
A continued tilt toward attached product is evident, as townhomes and condos outpace detached single‑family growth. Builders are right‑sizing plans and pricing to meet buyers where they are.
Rocket & UWM Post Q2 Profits—Green Shoots for Volume and Margins
Read the Full Story → Detroit Free Press
Rocket and UWM both reported second‑quarter profits, a welcome shift after a tougher stretch. The results point to improving execution, deeper cost discipline, and product strategies aimed at capturing demand as rates ease.
Refinance activity is stirring in pockets while purchase remains the core engine. Lenders highlighted competitiveness and tech investments that help speed files, sharpen pricing, and convert leads more efficiently.
For housing pros, the profitability return is a signal that capacity and service levels are stabilizing into the back half of the year—setting up for faster response when volumes lift with any meaningful rate drop.
Fed Watch: Temporary Governor Nomination Buys Time on Policy & Succession
Read the Full Story → The Basis Point
A White House move to nominate CEA chair Stephen Miran as a Fed governor through January 31 could position him to vote at upcoming FOMC meetings if confirmed. The step also extends the administration’s runway on broader Fed leadership decisions.
Markets had already leaned toward a September rate cut after weaker jobs data, and a seated governor could reinforce odds—though Senate timing will matter.
For housing, the key is signaling: anything that nudges policy toward growth could help rates drift lower into year‑end, supporting purchase power and builder confidence if demand meets improved affordability.
Loan Officer Perspective
Use this mix of stories to reassure buyers and agents that the pipeline is healthy even as permits normalize. Profitability at major lenders signals operational readiness for more volume. Pair that with local permit pockets that are still growing, and you’ve got an upbeat story to share. Line up pre‑approvals now so rate dips convert quickly.
Real Estate Agent Perspective
Don’t let national headlines flatten your local narrative. Spotlight submarkets where new‑home activity is steady and inventory options are improving. Coordinate with your lender partners on payment‑focused scenarios so buyers see what a 0.25%–0.50% rate move means for monthly budgets and qualification.
Home Buyer & Seller Perspective
Today’s market features more choices in many areas and increasingly competitive mortgage options. If rates edge into the low‑6% range—or better—your monthly payment can improve meaningfully.
Have questions or want to run numbers? Contact the loan officer or real estate pro who shared this post and get a personalized plan.
Frank’s Thoughts
The Zillow headline sounds downbeat, but the details tell a steadier story. Where permits softened, it’s mostly marginal—and many metros are still pushing higher. That’s a solid base, not a cliff.
Seeing Rocket and UWM print profits is exactly the kind of confirmation this industry needed. A rising tide lifts all ships, and this feels like the tide coming in.
My bet: when rates break into the low‑6s or high‑5s, we’ll be busier than we can shake a stick at.
Head down, eyes ahead, and work the Daily Success Plan. The pros who stay consistent right now will win big when the surge hits.
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August 7, 2025
Affordable Housing Financing Takes a Leap: Freddie Mac’s Single‑Wide Homes, Rate Relief & Strong Credit Metrics
Freddie Mac’s expansion of its CHOICEHome lending program to include single-wide manufactured homes marks a significant shift in affordable housing financing. With immediate effect, this opens doors for buyers priced out of traditional housing markets. Meanwhile, mortgage rates have dipped to their lowest point in nine months, offering additional affordability support. Credit metrics remain strong in Q2 2025, with delinquency and foreclosure rates continuing to decline. Together, these developments signal new opportunities for buyers and real estate professionals to act with confidence in an evolving market.
Freddie Mac Expands CHOICEHome to Single‑Wide Homes
Read the Full Story → Scotsman Guide
Freddie Mac has officially added single-wide manufactured homes to its CHOICEHome program, allowing these properties to qualify for conventional loans with as little as 3% down. This change brings single-wide homes in line with multi-section manufactured homes already eligible under the program.
These homes, typically priced around $200,000 including land, offer a more affordable alternative to traditional site-built homes, which often exceed $500,000. The move is expected to dramatically increase access to homeownership for cost-conscious buyers.
Freddie Mac emphasized that the update is effective immediately, giving lenders and housing professionals the green light to begin originating loans under the new guidelines.
Mortgage Rates Hit Lowest Levels in Nine Months
Read the Full Story → Bankrate
Mortgage rates have dropped again, with the 30-year fixed average falling to 6.63%, down from 6.75% just a week prior. According to Bankrate, this marks the lowest average rate recorded in the past nine months.
The rate dip, though modest, could ease affordability pressures that have sidelined many buyers. It also gives prospective borrowers better monthly payment scenarios and improves refinance feasibility for select homeowners.
Although broader inflation and economic factors continue to influence rate movement, this recent trend provides a moment of opportunity for buyers ready to act.
Mortgage Delinquencies and Foreclosures Stay Low in Q2 2025
Read the Full Story → Wolf Street
Serious delinquencies and foreclosures continued to decline in Q2 2025, according to data reported by Wolf Street. Mortgage delinquencies (90+ days) fell to 0.82%, and HELOC delinquencies hit 0.85%, both below pre-pandemic levels.
Foreclosure filings also dropped to around 52,800—well beneath the 65,000–90,000 range seen in 2018–2019. This suggests a housing market where most borrowers remain financially stable despite economic shifts.
The data supports a narrative of responsible lending and homeownership trends, helping professionals reassure clients of market resilience and long-term value.
Loan Officer Perspective
- The inclusion of single-wide homes in Freddie Mac’s CHOICEHome program creates a new stream of eligible buyers—highlight this in your next email campaign or social media post.
- With rates near nine-month lows, now is the time to reach out to fence-sitters considering a purchase or refinance.
- Low delinquency and foreclosure rates offer a reassuring backdrop—use that in your conversations with both clients and referral partners.
Real Estate Agent Perspective
- A new inventory solution just opened up: single-wide homes now backed by conventional financing. Perfect for price-sensitive clients.
- The current rate dip could unlock dormant buying power—revisit leads who paused earlier this year.
- Reinforce that buyer credit health remains strong; sellers can feel confident in today’s buyer pool.
Home Buyer & Seller Perspective
- If you’re looking for an affordable path to homeownership, ask about single-wide homes now eligible for 3%-down financing.
- Lower mortgage rates mean your dream home—or a smart refinance—might finally be within reach.
- Have questions or want to talk through options? Reach out to the loan officer or real estate pro who shared this post and get started today.
Frank’s Thoughts
The addition of single-wide homes to Freddie Mac’s CHOICEHome program is huge. This isn’t just a policy update—it’s a real expansion of affordable inventory, and it’s effective immediately. For a lot of people, this opens up homeownership where it simply wasn’t possible before.
If I were a loan officer or real estate agent, I’d be shouting this from the rooftops. This is an opportunity to help buyers who’ve been sitting on the sidelines—buyers who now have a real shot at owning a home, with financing that works for them.
It also signals to the market that we’re moving toward more creative, practical solutions to the housing affordability challenge. That’s exciting. Let’s help get the word out and turn this into real progress for our clients.
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August 6, 2025
VantageScore 4.0 Gains Support, Barry Habib on Fannie Mae Board, and Christie’s Launches Crypto Real Estate Division
The mortgage and real estate industries are moving swiftly toward modernization. This week’s news includes the MBA’s call for immediate adoption of VantageScore 4.0, Barry Habib’s appointment to the Fannie Mae board, and a major brokerage launching a dedicated crypto real estate division. These stories reflect a growing emphasis on credit accessibility, leadership transformation, and digital asset integration. For professionals in lending and real estate, staying informed on these shifts—especially the use of VantageScore 4.0 and crypto in transactions—is key to serving today’s evolving market.
MBA Pushes for Fast-Track Adoption of VantageScore 4.0
Read the Full Story → Scotsman Guide
The Mortgage Bankers Association is urging the Federal Housing Finance Agency to implement VantageScore 4.0 as soon as possible for loans sold to Fannie Mae and Freddie Mac. MBA President Bob Broeksmit stated that the move would modernize outdated practices and create more equitable access to credit.
VantageScore 4.0 uses trended credit data and includes rent, utility, and telecom payments—offering a broader, more inclusive way to assess borrower risk. This could open mortgage access to millions of consumers who currently lack traditional credit profiles.
The MBA also supports planning for future implementation of FICO 10T, pushing for an updated approach to credit that reflects current consumer behavior and technology. Their advocacy reflects a broader industry push toward innovation and inclusion.
Barry Habib Named to Fannie Mae Board, Shares Strong Views on Policy and Fed Leadership
Read the Full Story → Scotsman Guide
Mortgage industry veteran Barry Habib has officially joined the board of Fannie Mae. Known for his accurate market predictions and deep industry knowledge, Habib brings a strong, independent voice to one of housing finance’s most influential institutions.
In a recent interview, Habib criticized the Federal Reserve’s data reliance and leadership approach, calling for more transparency and practical decision-making. He also expressed support for Kevin Warsh as a potential successor to Fed Chair Jerome Powell.
Habib refrained from commenting on GSE privatization but noted Fannie Mae’s declining profitability and emphasized alignment with FHFA leadership. His addition to the board may signal bolder conversations ahead in housing policy and secondary markets.
Christie’s International Real Estate Launches Crypto Division in Southern California
Read the Full Story → HousingWire
Christie’s International Real Estate Southern California has launched a new division focused entirely on crypto transactions. The firm now represents over $1 billion in luxury real estate listings that accept cryptocurrency.
Led by top broker Aaron Kirman, the division includes ultra-luxury listings like the $118 million LA FIN estate, a $63 million Beverly Hills property, and the well-known $17.95 million Invisible House in Joshua Tree—all open to crypto buyers.
Though still rare, crypto real estate deals are gaining attention, especially among tech-savvy buyers. Christie’s move positions them at the forefront of a trend that could reshape luxury real estate—and eventually influence mainstream transactions as well.
Loan Officer Perspective
These developments bring great opportunities. The push for VantageScore 4.0 could expand your pool of qualified borrowers—especially among younger clients or those with limited credit history. Barry Habib’s new board role brings credibility and transparency to industry conversations, helping you explain changes more effectively. And though crypto is still niche, it’s entering the homebuying space—staying informed gives you an edge.
Real Estate Agent Perspective
VantageScore 4.0 could help you serve buyers previously denied due to traditional credit models. Barry Habib’s leadership may signal policy shifts that impact financing timelines, appraisals, or eligibility—understanding these changes positions you as a trusted guide. Meanwhile, the Christie’s crypto division signals a shift in how buyers may want to pay—particularly among the affluent or younger clientele.
Home Buyer & Seller Perspective
If you’re a first-time buyer or have limited credit history, changes like VantageScore 4.0 could make homeownership more accessible. Sellers may benefit from a larger buyer pool as lending standards evolve. And if you hold crypto assets or are curious about using them in real estate, now’s the time to ask questions. Reach out to the loan officer or agent who shared this post to explore your options or get started today.
Frank’s Thoughts
The Christie’s International story stands out. It’s more than just luxury—it reflects how digital assets are becoming a normal part of real estate transactions. This is something we need to watch closely in the mortgage world.
Young people and first-time buyers often hold crypto or other digital assets. As this becomes more commonplace, we’re likely to see changes in how we qualify and serve these clients. It’s a good idea to begin thinking about how we as professionals can support these new types of buyers.
We don’t need to be crypto experts overnight—but understanding the basics and staying open to change will help us stay ahead. This shift is real, and it’s coming faster than many expect.
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August 5, 2025
The 20 Hottest Real Estate Markets of 2025 and a Surprising Suburban Winner
The real estate landscape in 2025 continues to surprise, with new market trends and regional power shifts dominating the headlines. The focus keyword for this post is hottest real estate markets. From a standout suburb in the Northeast taking the top spot, to an insightful list of the top 20 hottest markets, and signs of a rebound in commercial borrowing, the latest news paints a picture of a housing market with pockets of strength and opportunity. Here’s what real estate and mortgage professionals need to know this week.
20 Hottest Real Estate Markets for 2025
Read the Full Story → AOL
Realtor.com released its annual list of the 20 hottest real estate markets for 2025, and the results defy expectations. None of the usual suspects in California made the list, marking a clear departure from previous years. Instead, the spotlight is on midsize cities and affordable metro areas with solid job growth and quality of life.
Markets in Ohio, New Hampshire, and New York dominate the rankings, with a blend of affordability and demand driving their performance. The analysis considered market demand, time on market, and median listing prices. It underscores a national shift away from traditional high-priced urban centers.
The report provides valuable insights for both industry pros and consumers. Buyers are gravitating toward places that offer economic opportunity without the sky-high cost of living. The data reveals emerging opportunities for those willing to think beyond the big metros.
Commercial Borrowing Increased 66% in Q2
Read the Full Story → Scotsman Guide
The Mortgage Bankers Association reports a significant 66% quarter-over-quarter jump in commercial and multifamily borrowing for Q2 2025. While still down year-over-year, this is a noteworthy sign of momentum returning to the commercial sector.
Industrial and retail properties led the way, with financing activity for retail more than doubling from Q1. Multifamily borrowing also rose 40%, fueled by stabilized rents and increased investor confidence.
This uptick hints at improved capital availability and investor sentiment as interest rate stability continues to improve. It’s a positive sign for commercial real estate professionals and a potential leading indicator for broader economic resilience.
Northeast Suburb Tops National Housing Market Rankings
Read the Full Story → Fox Business
A suburb in the Northeast has officially been named the hottest housing market in the nation for 2025, according to Realtor.com’s rankings. Manchester-Nashua, New Hampshire, beat out larger cities with strong demand, fast-moving inventory, and relative affordability.
The area’s proximity to Boston and its growing appeal among remote workers have driven its popularity. The typical home spends fewer days on the market here than in most other U.S. regions, and buyer interest remains strong despite national headwinds.
This development further confirms that consumer preferences are evolving rapidly. Affordability, livability, and access to major urban centers without the high cost are driving today’s housing decisions.
Loan Officer Perspective
Loan officers can use this data to position themselves as market experts, highlighting surprising market strength in regions clients might not expect. The rise in commercial borrowing shows opportunity beyond residential lending. Use these trends to educate clients and referral partners about where the momentum is shifting and how they can benefit from early action.
Real Estate Agent Perspective
Agents should spotlight emerging hot markets and offer insights to clients looking for growth opportunities. The demand in places like Manchester-Nashua and the broader top 20 list offers fresh angles for marketing. Share this information in listing presentations and social posts to show you’re tuned in to real-time market shifts.
Home Buyer & Seller Perspective
If you’re thinking about buying or selling, this is a good reminder that there are still strong markets out there. Whether you’re relocating, investing, or just curious about where the action is, now is a great time to connect with a professional. Reach out to the loan officer or real estate agent who shared this post with you to ask questions or start planning your next move.
Frank’s Thoughts
It’s refreshing to see a headline that doesn’t start with “slowing,” “dropping,” or “crashing.” The 20 hottest real estate markets story is a great reminder that real opportunity still exists, and that markets are always shifting—often in unexpected ways.
I was especially surprised to see which regions made the list and which didn’t. No California cities, and a strong showing for smaller, more affordable markets. That tells us a lot about where people are heading and what they value now.
This is a great story to share with clients and colleagues alike. It’s optimistic, fact-driven, and sparks conversations about what’s next in the housing market. Share it widely—it’s the kind of news that energizes our industry.
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August 4, 2025
Trigger Leads Ban, Fed Shake-Up, and Housing Reform Signal Big Shifts for the Industry
New legislation and leadership changes are making waves across the mortgage and real estate landscape. The Senate unanimously passed the Homebuyers Privacy Protection Act, targeting controversial “trigger leads” and setting a new standard for consumer data use. At the same time, President Trump prepares to appoint a new Fed governor and BLS chief—moves that could reshape monetary policy. And in a rare show of unity, the Senate is advancing a bipartisan affordable housing bill aimed at easing supply constraints. These developments mark significant shifts for industry professionals and consumers alike.
Senate Passes Trigger Leads Legislation by Unanimous Consent
Read the Full Story → Scotsmanguide
In a major win for the mortgage industry, the Senate has unanimously passed the Homebuyers Privacy Protection Act. This bipartisan legislation seeks to eliminate “trigger leads,” which occur when credit agencies sell consumer data after a mortgage credit pull—resulting in a barrage of unsolicited calls.
The bill mirrors the version passed by the House earlier this year, and now moves into reconciliation to resolve minor differences. Industry groups, including the Mortgage Bankers Association, have long advocated for this change, citing consumer confusion and frustration.
The law, once finalized, is expected to go into effect approximately six months after enactment. It represents a pivotal shift toward greater consumer privacy and more trusted client experiences in the mortgage process.
Trump to Name New Fed Governor and Labor Stats Chief
Read the Full Story → Scotsmanguide
President Trump has announced plans to appoint a new Federal Reserve governor and a new head of the Bureau of Labor Statistics in the coming days. These moves follow the resignation of Fed Governor Adriana Kugler and the dismissal of BLS Commissioner Erika McEntarfer after a disappointing jobs report.
With Kugler stepping down by August 8 and the BLS position now vacant, Trump has the opportunity to quickly influence the Fed’s direction and the federal government’s economic data strategy. Observers expect him to select candidates favoring looser monetary policy and more aggressive rate cuts.
Potential nominees include well-known economic voices such as Scott Bessent, Kevin Hassett, and Kevin Warsh. Their appointment could significantly impact mortgage rates and market confidence moving forward.
What to Know About the Senate’s Affordable Housing Bill
Read the Full Story → CNBC
The bipartisan ROAD to Housing Act of 2025 is gaining momentum in the Senate. Designed to address the nation’s worsening housing affordability crisis, the bill focuses on expanding housing supply and reducing regulatory barriers.
Key elements include zoning reform, incentives for modular and manufactured housing, and streamlined environmental reviews for new construction. Lawmakers hope these provisions will spur new developments and ease inventory shortages that have plagued buyers nationwide.
Backed by both major parties and supported by industry organizations, the bill is expected to pass before the August recess. If signed into law, it could unlock long-term improvements in housing accessibility and pricing.
Loan Officer Perspective
The trigger leads legislation is a major win—giving consumers peace of mind and reducing the noise around credit pulls. Prepare now by updating your compliance plans and client communication strategies. The expected Fed leadership shift could also bring a more favorable interest rate environment—keep clients informed and ready to act. And if the housing bill passes, more inventory could mean more loan opportunities. Stay nimble and educate your buyers early.
Real Estate Agent Perspective
With the trigger leads ban nearing implementation, you’ll have an easier time building trust with clients who’ve been frustrated by unsolicited calls. The housing bill could improve inventory issues over time—position yourself as a local expert in navigating new opportunities. Keep a close eye on rate movements from the Fed as leadership changes unfold; they’ll influence buyer urgency and affordability in the months ahead.
Home Buyer & Seller Perspective
These changes mean more privacy, potentially lower interest rates, and more housing choices on the horizon. If you’ve been overwhelmed by calls after a credit check, relief is on the way. A more affordable market and increased supply could make now a smart time to plan your next move. Reach out to the mortgage or real estate pro who shared this blog with you—they’re here to help you navigate what’s next.
Frank’s Thoughts
The trigger lead story is a clear standout this week. It’s not just a policy win—it’s a step forward for client respect and industry professionalism. While it won’t take effect for another six months, it’s worth celebrating now and preparing for in the months ahead.
We’ll need to watch closely how this impacts the cost of credit reports and lead generation tools. But overall, this is a shift in the right direction, especially for loan officers and agents who prioritize client trust and transparent communication.
Combined with the housing bill and new Fed leadership on the horizon, the market is shifting in a way that rewards preparedness. Stay informed, stay proactive, and use these changes to your advantage in conversations with clients and partners alike.
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August 1, 2025
Fed Debate, FHFA Direction, and Student Loan Shifts: What Housing Pros Need to Know Now
The first week of August brought a flurry of economic news directly impacting mortgage and housing professionals. A rare public dissent inside the Federal Reserve signals deeper divides on interest rate policy, a new FHFA director outlines bold affordability plans, and changes to student loan repayment rules could influence buyer budgets this fall. Whether you’re structuring deals, preparing clients, or navigating future rate expectations, these developments offer key clues into what’s next—and where your expertise will make the biggest difference.
Fed Faces Internal Tensions Over Rate Strategy
Read the full story → The New York Times
A rare internal disagreement has emerged within the Federal Reserve, as two regional presidents voiced public concerns over the Fed’s current path on interest rates. The dissent revolves around whether to maintain current levels or begin cutting sooner amid signs of economic softening and the political backdrop of the 2024 election outcome.
The central issue centers on inflation, which remains near the Fed’s 2% target, and fears of overcorrection. With unemployment ticking slightly upward and credit conditions tightening, some policymakers now believe a gradual easing may better support sustainable growth. Others, including Chair Jerome Powell, remain cautious of premature action.
For the mortgage industry, this signals volatility ahead. Rate watchers should prepare clients for mixed signals in the bond market—and use this uncertainty as a moment to emphasize strategy over timing. If the Fed begins a cut cycle before year-end, refinance windows could re-emerge alongside a potential uptick in purchase demand.
Student Loan Relief Phases Out—Impact on Borrower Budgets
Read the full story → CNBC
The federal government’s COVID-era pause on student loan interest is officially coming to an end. Starting September 1, millions of borrowers will once again begin accruing interest—even if they remain in forbearance or are enrolled in SAVE or other income-driven repayment programs.
This shift may cause a tangible monthly budget hit for first-time homebuyers and younger households. While payment reductions remain in effect for many borrowers, the return of interest accumulation means total debt loads will grow again, affecting both DTI ratios and overall mortgage qualification ceilings.
Loan officers and Realtors alike should proactively identify prospects who may be impacted—particularly those with delayed buying timelines. Guiding clients toward budgeting tools, refinance options on private debt, or co-borrower strategies will become increasingly important as affordability gets squeezed from multiple sides.
New FHFA Director Shares Housing Affordability Vision
Read the full story → Scotsman Guide
In an exclusive interview, newly appointed FHFA Director Bill Pulte outlined a forward-looking housing agenda focused on affordability, credit access, and market innovation. Pulte emphasized the need for “radical collaboration” across agencies, lenders, and developers to make meaningful progress on the housing shortage.
Pulte highlighted three core priorities: expanding support for first-time buyers, modernizing underwriting through tech, and enabling GSEs to pilot creative solutions like shared equity models. He also hinted at coming changes to loan-level pricing and credit scoring models to better reflect today’s borrower profiles.
This leadership shift at FHFA could reshape GSE policy—and by extension, market opportunity. LOs and agents should follow these developments closely, as regulatory changes could directly affect borrower eligibility, pricing, and product offerings in the coming quarters.
Loan Officer’s Perspective
- Watch for rate movement potential: Market pressure is building for the Fed to act—have a lock/float framework in place.
- Reconnect with clients carrying student loan debt: Adjust preapprovals and refresh DTI analysis ahead of fall.
- Track FHFA signals: Early knowledge of new GSE pilots or affordability tools will give you a competitive edge.
Realtor’s Perspective
- Guide first-time buyers through budgeting shifts: Student loan interest resumption will catch some by surprise.
- Educate sellers and buyers alike: Lower rates could revive fall traffic—position accordingly.
- Build lender-partner conversations around affordability innovation: Be ready to explain shared equity or pricing shifts as they emerge.
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July 31, 2025
Rate Forecasts, Crypto Lending, and Fed Uncertainty
The mortgage rate outlook continues to shift as markets digest mixed economic signals, Fed commentary, and emerging legislation. In late July, mortgage rates are holding steady in the mid-6% range while experts debate what’s next for housing affordability. Meanwhile, new Senate legislation could reshape underwriting by including digital assets like crypto, and Fannie Mae’s updated forecasts signal a slow but steady rate decline into 2026. Here’s what’s moving the market—and how mortgage professionals and Realtors can stay ahead.
Markets Expected More Dovishness From Powell
Read the full story → Mortgage News Daily
Economic reports released earlier in the day suggested the Fed might adopt a more dovish stance—especially after core inflation metrics were revised downward. However, by the close of trading, the bond market remained relatively flat, with mortgage-backed securities (MBS) showing only modest weakness.
While GDP headlines looked strong, underlying demand data told a more muted story. The market had already priced in some softness, so the day ended with very little movement in rates. Current 30-year fixed rates are hovering around 6.75%, keeping borrowers in a cautious holding pattern.
Although the Fed didn’t surprise markets, Chair Powell’s remarks reinforced a slow, patient approach toward policy change—signaling no immediate relief, but no tightening either. The bond market is now closely watching upcoming inflation releases for the next directional cue.
Loan Officer Insight:
- Use the calm to initiate lock discussions—timing matters in a sideways rate market.
- Prep borrowers for future movement; transparency builds confidence.
Realtor Insight:
- Highlight rate stability with urgency: this window could shift quickly.
- Collaborate with lenders to frame scenarios in real-time for active buyers.
Fannie Mae Predicts Major Mortgage Rate Changes Ahead
Read the full story → TheStreet
Fannie Mae is now projecting the average 30-year fixed mortgage rate to fall to 6.4% by the end of 2025—and even lower into 2026, possibly reaching the 6.0% mark. These changes come alongside a downward revision to their home price forecast, which now sits at 2.8% for 2025 and just 1.1% in 2026.
This suggests that affordability could improve gradually over the next 18 months, especially for move-up buyers and long-term planners. While demand remains suppressed in the short term, sales activity is expected to tick up modestly as buyers reenter the market in anticipation of lower rates.
The report reinforces a key message for both lenders and Realtors: while there’s no rush, preparation is everything. When rates do fall, activity could rebound quickly—especially if inventory remains tight.
Loan Officer Insight:
- Use long-range forecasts in pipeline conversations—encourage clients to plan, not pause.
- Create refi watchlists based on this projected curve.
Realtor Insight:
- Message future affordability to your list—position clients to act sooner rather than wait for perfection.
- Stay engaged with sellers who might benefit from listing before competition increases.
Senate Bill Aims to Revolutionize Lending with Crypto Assets
Read the full story → Scotsman Guide
A new Senate proposal—the 21st Century Mortgage Act—could fundamentally shift how digital assets are treated in mortgage underwriting. If passed, it would require agencies like Fannie Mae and Freddie Mac to factor in unconverted crypto holdings when assessing borrower eligibility.
This would mark a major policy shift, especially for younger borrowers with significant digital investments but less traditional liquidity. Currently, crypto must be converted into fiat currency to count toward asset qualification—often triggering tax consequences or delays.
Though opposition is already forming, the proposal reflects growing political and institutional interest in modernizing lending rules. If adopted, this could reshape asset qualification standards and open the door for more innovative products in the coming years.
Loan Officer Insight:
- Start tracking crypto-holding clients—educate them on evolving guidelines.
- Prepare FAQs and educational tools as awareness builds.
Realtor Insight:
- Use this as a conversation starter with digital-native prospects.
- Partner with lenders to build marketing campaigns around non-traditional asset buyers.
Loan Officer’s Perspective
- Prep clients with clarity around sideways rates and future drops—use Fannie Mae data to guide strategy.
- Create contact lists of crypto-holding clients or prospects for proactive education.
- Use this quiet market to lock pipeline clients and refine your follow-up automation.
Realtor’s Perspective
- Position buyers now while rates are stable—especially those eyeing affordability in the future.
- Use new crypto lending headlines to re-engage digitally savvy leads.
- Encourage sellers to consider listing before buyer competition increases in 2026.
Frank’s Thoughts…
I think the most interesting thing today is the crypto story. If we can count crypto as an asset, that could have an impact on automated underwriting decisions. It might get us an approval where we normally wouldn’t have.
This could be a good question to drop in your social feeds to stir up a conversation. You never know where a conversation around crypto might lead.
Have a great day and I hope to see you on LOBC tomorrow!
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July 30, 2025
Fed Holds, GDP Surges, and Housing Reform Advances: What It Means Now
With the housing affordability crisis dominating headlines, real estate professionals are watching a critical convergence of economic and legislative events. The Federal Reserve held interest rates steady during its July meeting, citing mixed inflation and employment data. Meanwhile, the U.S. economy surprised with stronger-than-expected Q2 growth, signaling continued resilience. At the same time, Congress took a major step toward tackling housing supply challenges with bipartisan momentum behind the ROAD to Housing Act. Together, these developments offer both clarity and urgency for mortgage originators and Realtors navigating client conversations and pipeline strategy in today’s market.
Fed Divided, But No Rate Cut Yet
Read the full story → TheStreet
Despite speculation and internal pressure, the Federal Reserve held its benchmark interest rate steady at the July FOMC meeting. Chair Jerome Powell emphasized that inflation remains above the Fed’s 2% target, warranting caution, even as some governors—like Christopher Waller and Michelle Bowman—pushed for a rate cut based on cooling labor market signals.
Markets had priced in only a 2% chance of a July cut, according to CME FedWatch, but the dovish tone from dissenting voices inside the Fed could shape the path forward. Analysts expect September to be the earliest realistic window for policy easing, if inflation moderates.
Loan Officer Insight: Prepare messaging that reframes “no cut” as market stability. Clients still have time to lock in near-peak affordability with fixed products and smart planning tools.
Realtor Insight: This pause gives you space to educate buyers on rate trends and promote longer-term affordability—especially for those worried about jumping in too late.
Q2 GDP Beats Expectations at 3%
Read the full story → CNBC
The U.S. economy expanded at an annualized rate of 3% in Q2 2025, far surpassing forecasts of 2.3%. The report reflects strength in consumer spending and business investment, despite ongoing pressures from tariffs and global uncertainty.
Labor market data shows mixed signals: ADP reported 104,000 private-sector jobs added in July, while economists are watching wage growth and hours worked for signs of further softening. Still, the GDP report reinforces a theme of economic resilience—key for borrower confidence as housing costs remain elevated.
Loan Officer Insight: Leverage this growth data to reassure borrowers and build urgency. An expanding economy supports stability in housing demand and underwriting.
Realtor Insight: Use this “good news” to reinvigorate cautious buyers. Position properties as long-term investments backed by a strong economic backdrop.
ROAD to Housing Act Gains Bipartisan Momentum
Read the full story → Scotsman Guide
In a rare moment of bipartisanship, lawmakers advanced the ROAD to Housing Act through the Senate Banking Committee. The legislation—sponsored by Senators Tim Scott and Elizabeth Warren—seeks to boost affordability by cutting red tape, modernizing zoning, and expanding access to modular and manufactured housing.
Key provisions include faster environmental reviews, incentives for local zoning reforms, and targeted funding to support first-time buyers. With 40 measures passing committee unanimously, the bill now moves to the Senate floor. Stakeholders say the reforms could meaningfully shift the affordability landscape over the next 1–3 years.
Loan Officer Insight: Position yourself as an expert on how future legislation could unlock new products, down payment assistance, or underserved markets.
Realtor Insight: Prepare now for what’s next—develop content around modular housing, rezoned opportunities, and how policy shifts may increase your inventory pool.
Loan Officer’s Perspective
- Stay ahead of the curve on Fed policy—clients need clarity on where rates are headed, not just guesses.
- Use strong GDP numbers to support urgency in buying or refinancing before potential market shifts.
- Monitor housing legislation developments and incorporate affordability reform updates into buyer education materials.
Realtor’s Perspective
- Create drip campaigns tied to economic optimism and affordability wins.
- Highlight modular housing opportunities as zoning changes roll out.
- Work with lenders to co-brand educational content on how today’s market is shaping tomorrow’s opportunities.
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July 29, 2025
New Construction Price Surprises, Fed Messaging Shift, and FHFA Policy Reversal: What It All Means
In 15 States, New Construction Homes Are Now Cheaper Than Resales
Read the full story → Realtor.com
A new analysis reveals a surprising shift in housing economics: in 15 U.S. states, it is now cheaper to buy a new construction home than a resale. Once considered a premium product, newly built homes have become the more affordable option in markets like California, Arizona, and Texas, driven by builder incentives and efficiencies.
In California, new homes are selling for a median price of $700,000—$50,000 less than the median resale. The trend is most pronounced in Sun Belt and Mountain West states, where large-scale builders dominate and have slashed prices, offered aggressive rate buydowns, and streamlined costs to move inventory.
This shift is redefining buyer behavior, especially among first-time and move-up buyers. Loan officers and agents should re-evaluate assumptions about new builds being “too expensive” and focus more on pairing clients with builder-aligned loan options. With inventory tight in the resale market, new construction could be the answer for affordability-seeking buyers.
Loan Officer Insight: Don’t assume resale is cheaper—run real scenarios. Builder partnerships are a strategic edge right now.
Realtor Insight: Rethink your buyer presentations—lead with new construction options, especially in price-sensitive markets.
Fed Chair Powell Signals Rate Cuts Are Possible—But Politics Loom
Read the full story → New York Times
Federal Reserve Chair Jerome Powell indicated that interest rate cuts remain on the table this year, even as political pressure mounts. Former President Donald Trump has openly criticized the Fed, claiming rate cuts are delayed for political reasons. Powell rebuffed these comments but emphasized that future cuts will be data-dependent.
The Fed is watching inflation and labor market metrics closely. If inflation continues to cool—currently hovering near 2.7%—a cut could come as early as September. However, uncertainty surrounding global markets and election-year politics may delay action or introduce volatility.
This development adds another layer of complexity to rate forecasting. Mortgage professionals should stay grounded in client education and flexible strategies. Rather than promising rate direction, advisors can guide clients toward preparedness and clarity amid conflicting headlines.
Loan Officer Insight: Stay neutral, stay strategic. Guide with logic, not predictions.
Realtor Insight: Empower clients with facts, not fear. Keep preapprovals current and flexible.
FHFA Seeks to Repeal Key Fair Lending and Equity Rule
Read the full story → Scotsman Guide
The Federal Housing Finance Agency (FHFA) is proposing to roll back a rule that required Fannie Mae and Freddie Mac to submit Equitable Housing Finance Plans—a major component of the agency’s fair lending framework. Initially adopted in 2022, the rule mandated clear annual plans to improve access for underserved borrowers.
FHFA Director Sandra Thompson argued that the rule is unnecessary because oversight can be handled through informal supervision. Critics contend this weakens fair lending efforts and removes transparency from housing equity initiatives.
This proposed repeal could have ripple effects on affordable lending programs, CRA-aligned partnerships, and broader inclusion efforts. Loan officers working in diverse communities or with specialty programs should monitor this development and be ready to adjust outreach strategies and borrower education efforts accordingly.
Loan Officer Insight: Watch for shifts in CRA or downpayment assistance program support. Stay close to nonprofit partners.
Realtor Insight: If equity efforts slow, hyper-local education will matter more. Reaffirm your value to underserved markets.
Loan Officer’s Perspective
- Partner with builders now—new homes may be your best affordability solution in 15+ states.
- Educate without predicting—use Fed uncertainty as a trust-building moment with clients.
- Track CRA and equity program changes—prepare for a reshuffling of incentives and oversight.
Realtor’s Perspective
- Pitch new construction differently—many buyers don’t realize it may now be the cheaper option.
- Keep rate noise in check—help buyers act on readiness, not hypotheticals.
- Double down on underserved outreach—market shifts may reduce institutional support, increasing your role.
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July 28, 2025
Fannie Mae Taps Barry Habib as Zillow Lowers Forecast—Here’s What It Means
What’s New in Housing This Week
This week’s real estate and mortgage headlines highlight a major leadership shift: Barry Habib, one of the most trusted figures in mortgage forecasting, has joined the Fannie Mae board of directors. Meanwhile, Zillow has downgraded its home price forecast across more than 400 markets, pointing to a broader national slowdown. And political tension between President Trump and Fed Chair Jerome Powell adds uncertainty to the future of interest rates. Here’s what mortgage professionals and Realtors should take away from the latest market movements.
Barry Habib Named to Fannie Mae Board of Directors
Read the full story → Scotsman Guide
Mortgage strategist Barry Habib has been appointed to the Fannie Mae board of directors, effective July 21, 2025, according to an SEC filing. Habib, founder of MBS Highway, is well known for his award-winning market forecasting and for being a long-time advocate for loan originators and industry clarity.
His appointment comes as mortgage liquidity, affordability, and credit access remain central challenges. Habib has been a public critic of Federal Reserve MBS policy and has emphasized the unintended consequences of long-term intervention. His perspective could influence how Fannie Mae navigates future product risk, GSE reform, and the evolving balance between public mission and market stability.
With Habib now inside the policy circle, loan officers and Realtors have a unique opportunity to leverage his insights with added authority. His presence on the board could impact upcoming Fannie Mae guidance, especially around housing finance access, pricing, and innovation.
Loan Officer Insight:
- Reference Habib’s appointment in your messaging to increase client trust and industry credibility.
- Use his board position to explain secondary market factors in simple, client-friendly terms.
Realtor Insight:
- Cite Habib’s insights when discussing market trends or pricing hesitations with buyers and sellers.
- His leadership lends weight to timing conversations and trust-building with hesitant clients.
Zillow Revises Home Price Forecast—26% of Listings Cut Prices
Read the full story → Fast Company
Zillow has adjusted its national forecast downward, now expecting U.S. home prices to decline by 0.7% from May 2025 to May 2026. This marks a significant revision from earlier expectations and reflects a slower market with less upward pressure on prices.
Nearly 26% of listings received price cuts in May—more than in any previous May on record. National year-over-year appreciation has slowed to just 0.4%. While some metros like Knoxville, TN, and Kingston, NY, are forecasted to gain modest value, a majority of markets are entering a flat or softening phase.
The updated forecast presents an opportunity for buyers to re-enter the market with stronger leverage, while sellers must now price competitively to stand out. For agents and lenders alike, it’s a moment to realign expectations and focus on education and adaptability.
Loan Officer Insight:
- Use price softening trends to reengage pre-approved buyers who paused due to affordability concerns.
- Emphasize payment-focused planning tools and explain how price stability supports long-term ownership.
Realtor Insight:
- Prep sellers for a more competitive landscape and longer time on market.
- Use the Zillow report to support strategic pricing and motivate quicker listing decisions.
Trump vs. Powell: Fed Chair Faces Political Fire as Rates Hold Steady
Read the full story → CNN
President Trump is intensifying public attacks on Federal Reserve Chair Jerome Powell, criticizing both interest rate policy and the $2.5 billion renovation of the Fed’s headquarters. While legal precedent protects Powell from removal without cause, the political pressure is ramping up as inflation lingers and markets wait for potential rate cuts.
Powell has stated he intends to complete his term, which ends in May 2026. Despite the political backdrop, Fed officials remain cautious about easing too soon. Inflation and global uncertainty, including tariffs and Treasury sell-offs, continue to influence decision-making.
This unfolding conflict may delay hoped-for rate cuts or shift bond market sentiment, impacting mortgage rates in the second half of the year. Clients may hear noise about political infighting, but professionals must stay focused on fundamentals and clear communication.
Loan Officer Insight:
- Monitor messaging for potential shifts in rate policy sentiment—but avoid speculation.
- Use political headlines to reinforce the value of pre-approval, rate locks, and scenario planning.
Realtor Insight:
- Help clients cut through political noise by focusing on today’s numbers and local opportunities.
- Be ready with clear answers when rate concerns come up during showings or buyer consults.
Loan Officer’s Perspective
- Barry Habib’s board appointment provides new clarity—reference his insights in client updates.
- Zillow’s forecast is a strong conversation starter—help clients pivot strategy, not panic.
- Rate volatility from political conflict underscores the need for lock-and-shop options.
- This is the time to reengage paused buyers with updated pricing and affordability conversations.
Realtor’s Perspective
- Use Zillow’s forecast to help clients understand the shift toward price realism.
- Habib’s influence adds confidence—mention his board role in newsletters or listing consults.
- Anticipate buyer questions about interest rates—align with a trusted LO to offer answers.
- Position yourself as the steady voice in a noisy market.
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