It’s a brand-new year, and your real estate brokerage is on the up-and-up.
But where to begin? What makes the most sense when it comes to investing your precious time and energy?
Our suggestion? Tapping into closely related services.
Sure, you could open up a home staging biz or dip your toe into insurance. But you know what might just be the most natural addition?
Mortgage services.
Just think about it: Most of your clients need to get a mortgage somewhere. Why not from you?
As we head into the new year, we all can agree, a strong mortgage market in 2025 would be great for everyone. And plenty of industry pros are already weighing in on a few different key factors, including:
- Mortgage originations
- Mortgage rates
- Inventory expectations
- Demographics
- Technology
So, whether your resolution is simply growing your real estate brokerage or you’re looking to break into the mortgage world, read on to see what some experts are predicting for a 2025 mortgage market.
Mortgage Originations Should Be on the Up and Up
Home financing giant Fannie Mae is predicting a whopping $2.16 trillion in mortgage originations for 2025. Yes, that’s a trillion with a “T.”
If that number is accurate, it’ll be a year-over-year increase of more than 28%.
If growing your business is a New Year’s resolution, maybe it’s time to finally grab a piece of that pie.
Mortgage Rates Might Just Stabilize
It doesn’t look like mortgage rates will come down in any meaningful way this year. And definitely not to that pandemic-era, 2-3% range.
But it’s not all gloom and doom. Tons of experts are seeing a silver lining.
Basically, there’s a good chance that mortgage rates will stabilize a bit more throughout 2025.
The economic research team at Realtor.com® predicts that rates will reach an average of 6.3% for the year. While that’s still a tad high, it’s marginally better than 2024’s 6.7% rate.
And guess what? Those stabilizing mortgage rates could make all the difference for mortgage pros.
That’s because, when consumers see less seesawing in interest rates, their confidence usually goes up. This could mean a bunch more buyers hopping off the fence.
Of course, this could be killer for your real estate biz, too. But there’s one more big benefit you’d really only see in the mortgage world: Refinances.
The refinance market is pure opportunity, as homeowners work to tap into stabilizing rates right alongside buyers.
Inventory Should Keep Climbing
As you probably well know, inventory has been an issue for a few years now.
Millions of homeowners are locked into cushy loans with low rates. It’s no wonder they’re not exactly running to market.
Add on the fact that new builds have lagged, and there is a real supply issue.
The good news? We might just see the tides start to turn this year.
Realtor.com® projects an 11.7% jump in existing home for-sale inventory, as well as a whopping 1.1 million new builds, a 13.8% year-over-year increase.
That’s a lot of potential mortgage loans.
Borrower Demographics are Shifting
New year, new homebuyers!
The mortgage market may see fundamental changes in 2025. That’s because its consumers are changing, too.
Of course, millennials will still make up a big portion of the homebuyer base. But Gen Zers, or “Zoomers,” are hot on their tail.
Buyers born between 1997 and 2012 are expected to make up more than 30% of the market this year. That means that nearly one-third of buyers will be 28 years old or younger.
Plus, a whopping 81% of those Zoomers believe they’ll work with a real estate agent in their home purchase process. If we subtract cash purchases (roughly one-third of purchases in 2024) that’s still a ton of mortgage origination potential… No cap.
New Tech Can Alter the Industry
Everyone was talking about AI in 2024, and that tune probably won’t change too much in 2025.
So far, pros are predicting:
- Greater opportunity for customization
- Improved human-like approaches to problem-solving
- More use cases and higher rates of adoption
- Stricter regulations
- Greater accessibility
Imagine this: you start your day with an AI-powered assistant that helps you prioritize tasks and manage your schedule.
Throughout the day, AI tools streamline your workflow, from automating routine tasks to providing real-time data insights.
By 2025, AI is expected to be fully integrated into enterprise-wide deployments, enhancing productivity and efficiency across various industries.
That’s right, the future is now!
Are You Taking on the 2025 Mortgage Market?
Whether you’re growing your current real estate business or adding mortgage brokerage services, it’s a whole new year and a whole new landscape.
Are you ready to grab the bull by the horns?
Let’s say it one more time: This is the year of you!
Published on January 27, 2025
