The veteran foreclosures crisis in 2025 is escalating, as the expiration of the VA’s loan purchase relief program has left tens of thousands of borrowers at risk. While the mortgage market digests this news, rates have dipped slightly ahead of the Federal Reserve’s policy announcement. Home price growth is also showing signs of moderation, adding new dynamics to an already shifting landscape. Loan officers need to be particularly alert this week—not just to changes in rate movement, but to the real financial stress emerging for veteran borrowers and the impact of stabilizing prices on borrower urgency.
Veteran Foreclosures Climb as VA Protection Program Expires
Read the full story → MarketWatch
The Department of Veterans Affairs’ temporary loan relief program, the Veterans Affairs Servicing Purchase (VASP), ended May 1. The program had allowed the VA to purchase delinquent loans from servicers and reduce interest rates to 2.5% for struggling veteran homeowners. Without it, over 60,000 veterans are now at serious risk of foreclosure.
Foreclosure filings have increased 9% year-over-year and 11% over the last quarter. Veteran advocacy groups are urging Congress to develop a permanent support program to prevent widespread housing displacement among those who served.
Loan Officer Insight: Veterans are a vital segment of the borrower base. Now is the time to reach out to past VA clients. Offer guidance on hardship options, explore local or nonprofit programs, and ensure those in distress know there’s support beyond the VA.
Mortgage Rates Dip Ahead of Fed Meeting
Read the full story → Bankrate
Ahead of this week’s Federal Reserve announcement, average mortgage rates declined slightly. The 30-year fixed sits at 6.83%, down 5 basis points, and the 15-year fixed dropped to 6.01%, down 8 basis points. The 5/1 ARM rose slightly to 6.24%.
Markets appear to be pricing in a “wait and see” stance from the Fed. Economic signals remain mixed, with inflation persistent but wage growth slowing. For borrowers, today’s conditions offer a small—but valuable—opportunity to lock rates before potential volatility.
Loan Officer Insight: Rate drops may be modest, but they offer talking points. Use this moment to reconnect with fence-sitters, encourage credit prep, and guide clients toward lock-and-shop strategies.
Home Price Growth Slows Nationally, Creating a More Balanced Market
Read the full story → Cotality
National home prices rose 3.3% year-over-year through January 2025, according to Cotality, reflecting a clear slowdown from the post-pandemic boom. Monthly growth has flattened, and price dynamics are now closely tracking inflation rates.
Notably, the Northeast remains an exception, with home values still climbing due to limited inventory and strong local demand. Other regions show more balance between supply and demand as mortgage rate relief encourages new listings.
Loan Officer Insight: This market is made for guidance. The end of runaway appreciation helps create realistic expectations. Help clients understand where prices are cooling—and how that improves negotiating power without eliminating urgency.
Real Estate-Related Stock Performance (as of May 6, 2025)
| Stock | Price | Change |
|---|---|---|
| Rocket Companies (RKT) | $12.22 | ▼ 3.17% |
| UWM Holdings (UWMC) | $4.85 | ▼ 0.72% |
| Zillow Group (ZG) | $67.09 | ▼ 0.81% |
| Redfin Corp (RDFN) | $9.33 | ▼ 2.71% |
| Lennar Corp (LEN) | $109.44 | ▼ 0.69% |
| D.R. Horton (DHI) | $125.90 | ▼ 1.11% |
| Equifax Inc. (EFX) | $262.94 | ▼ 0.53% |
Summary: Real estate-related stocks declined slightly across the board. Mortgage lenders like Rocket and Redfin saw the sharpest pullbacks, possibly reflecting investor concerns about market softness and government program phaseouts. Builders continue to perform better, albeit with mild losses.
Loan Officer’s Perspective: Three Ways to Serve This Week
The stories today reflect a market in transition. This is the time when real relationships and strategic communication make the difference.
- Support Your Veteran Borrowers: Use this moment to lead. Make courtesy calls to VA loan clients from 2021–2023. Ask how things are going. Offer value, not a pitch.
- Use Rate Dips to Create Urgency: Send a short update to your pre-approved clients—“Rates just moved. Here’s how this could improve your buying power.”
- Highlight Price Stability as a Positive: When prices rise too fast, people panic. Now, with slower growth, help buyers see opportunity, especially in local pockets with softening demand.
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Visit DailySuccessPlan.com to see how top-producing loan officers build momentum with consistent action.