Morgan Stanley Forecasts Rate Easing Into 2026
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thestreet.com
Morgan Stanley has released a forward-looking mortgage rate forecast, projecting a gradual decline in rates through 2026. Contrary to hopes of a dramatic rate drop, the investment bank’s economists anticipate a slow easing path, aligning with expectations of a soft landing for the economy. The firm pointed to stabilizing inflation and a less aggressive Federal Reserve as supporting factors for this trend.
This measured forecast reinforces the notion that rates will drift lower, not plunge. Analysts note that while short-term volatility is likely due to economic data releases and geopolitical developments, long-term bond yields are showing signs of cooling. If the Fed pauses hikes and economic indicators remain stable, a modest but steady decline in mortgage rates could create more favorable conditions for homebuyers by mid-to-late 2025.
Loan officers should view this as a key moment to set realistic expectations with clients. While affordability should improve in the long run, near-term conditions still call for strategic planning. Use this forecast to highlight the benefits of readiness, such as securing favorable terms when opportunities arise or leveraging temporary rate buydown programs to bridge affordability gaps.
Zillow Tightens Listing Standards Under NAR’s Clear Cooperation Rule
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northjersey.com
Zillow announced it will stop displaying property listings that are publicly marketed but not listed in the local MLS within one business day, effective immediately. This change is in direct response to the National Association of Realtors’ (NAR) Clear Cooperation Policy, which seeks to ensure fair access to housing data by limiting so-called “pocket listings” or off-market deals that restrict exposure to select buyers.
This policy shift could reshape how agents market listings, particularly in high-demand or luxury markets where exclusivity has sometimes been used as a selling tactic. By requiring listings to be input into the MLS quickly, the policy levels the playing field and prioritizes broad visibility. Zillow’s decision aligns the platform with MLS rules and may further incentivize listing agents to follow standardized practices, minimizing consumer confusion.
For loan officers, this move presents an opportunity to provide added clarity for clients about listing visibility and market transparency. It’s a great time to partner with agents to ensure clients are accessing the full spectrum of homes available. Educate buyers on how listing availability works and prepare them to act quickly, knowing they’re seeing up-to-date and compliant inventory.
Mortgage Rates Edge Up Slightly After Strong Economic Signals
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mortgagenewsdaily.com
Mortgage rates ticked upward on May 1 following a stronger-than-expected economic report. The average 30-year fixed rate now sits at 6.83%, up slightly from the previous day. Market analysts attributed the movement to a robust manufacturing report, which suggested ongoing economic expansion and raised the prospect of continued inflationary pressures.
While the rate change was modest, it serves as a reminder that rates remain sensitive to economic signals. Bond markets, which influence mortgage rates, react quickly to data that could alter the Federal Reserve’s policy stance. As long as inflation remains above the Fed’s long-term target, rates are likely to remain volatile even if longer-term forecasts point to easing.
Loan officers should use this as an opportunity to discuss rate lock strategies with clients. With daily shifts possible, preapproved buyers should be equipped to move quickly when favorable pricing appears. Emphasize the value of locking in now with options for future float-downs, especially for borrowers wary of short-term rate swings.
Pending Sales Slip Despite Growing Housing Inventory in April
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realtor.com
Realtor.com’s April housing report revealed a nuanced picture of the spring market. While active inventory grew, pending home sales declined month-over-month, signaling a cautious buying environment. Buyers appear hesitant despite more choices, with affordability concerns and rate volatility likely playing a role in suppressing contract activity.
This dynamic suggests buyers may be waiting for either rates to fall or home prices to soften further. Inventory remains well below historical norms, though the month-over-month improvement does provide a ray of hope for those frustrated by tight supply. The increased days-on-market also point to a market in transition—still favoring sellers, but with less urgency.
For loan officers, now is a perfect time to educate buyers on market timing and strategy. Help clients distinguish between data-driven decisions and emotional hesitation. Promote affordability tools such as temporary buydowns, payment planning, and preapproval refreshes to help them move with confidence when the right home appears.
Real Estate-Related Stock Performance (as of April 26, 2025)
- Rocket Companies (RKT): $12.37 ▲ 0.4%
- UWM Holdings (UWMC): $4.60 ▼ 0.3%
- Zillow Group (ZG): $62.89 ▲ 0.1%
- Redfin Corp (RDFN): $8.98 ▼ 0.4%
- Lennar Corp (LEN): $106.72 ▲ 0.6%
- D.R. Horton (DHI): $123.10 ▲ 0.4%
- Equifax Inc. (EFX): $252.04 ▲ 0.2%
Builder and housing platform stocks rose slightly, reflecting confidence in rising inventory and long-term rate improvement. Mortgage lender stocks remained more neutral, mirroring the stability seen in current rate movements.
Loan Officer’s Perspective: Convert Uncertainty Into Opportunity
The market continues to shift, and that gives proactive LOs a chance to lead. Take advantage of Morgan Stanley’s rate forecast to reset expectations for long-term affordability—and to move clients toward readiness, not perfection. Zillow’s listing update offers a reason to connect with agents and reinforce your role as a strategic guide in the process.
As inventory rises but buyers hesitate, use market data to coach clients on urgency without panic. Pair this with affordability tools, and help them see the opportunity others are missing. Lastly, keep your rate watch tight. Daily volatility means one well-timed lock can turn a maybe into a “yes.”
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