Mortgage Update - June 30th, 2025
I almost didn’t get this newsletter out—not because there wasn’t news (there definitely was), but because I’ve been fully hypnotized by my new Father’s Day gift: a Blackstone griddle 🔥
Life before this thing? I’m not sure it even counts. I’ve officially entered my outdoor chef era—flipping pancakes, sizzling bacon, and frying eggs all at once like some suburban Benihana master.
So while I’m outside convincing myself this counts as cardio, here’s your dose of what happened this week in the world of mortgages, money, and madness. Let’s dive in—this one’s stacked.
We are posting regular content to Instagram (Nick | Kreg) and Facebook (Nick | Kreg) to help you and your buyers stay informed. Be sure to follow us!
Read time: ~4 minutes
Bitcoin Might Soon Help You Buy a House
Bitcoin bros and house hunters, rejoice! We’re one step closer to a world where your crypto wallet might help you qualify for a mortgage—without selling a single coin. 🤯
In a bold move, FHFA Director Bill Pulte just ordered Fannie Mae and Freddie Mac to start drafting rules that would allow cryptocurrency (yep, Bitcoin & Ethereum) to count as assets in mortgage applications. Think of it like stocks and bonds… but way more 2025.
🚫 What it doesn’t mean:
You can’t pay your monthly mortgage in Bitcoin just yet. Payments are still in good ol’ U.S. dollars.
✅ What it could mean soon:
If you’ve got crypto sitting on a U.S.-regulated exchange, that digital gold could help boost your qualifying power—without cashing out.
Fannie & Freddie now have to propose how this would work, including guardrails for crypto volatility. Nothing is final until their boards sign off—but the momentum is real.
Key Takeaway: The FHFA’s move is a big win for crypto legitimacy. It signals to banks, investors, and institutions that crypto is no longer fringe—it’s part of the financial system.
“Phantom Debt” May Soon Harm Credit Scores
Those “4 easy payments” at checkout? They’re not so invisible anymore.
Later this year, FICO will officially start to factor Buy Now, Pay Later (BNPL) loans into new credit score models, giving lenders visibility into how well consumers are managing these short-term payment plans.
BNPL has become a popular alternative to credit cards—helping shoppers stretch budgets or cover larger purchases—but moving forward, missed payments could hurt credit scores just like any other loan.
🚨 Why It Matters for Home Buyers:
If you’re juggling multiple BNPL plans, lenders will finally see that—and it could impact your ability to qualify for a mortgage or get favorable terms.
Even if you're paying them off on time, stacking too many loans could signal financial stress.
✅ How to Protect Your Creditworthiness:
Track your BNPL usage just like you would credit cards. These are now visible liabilities.
Avoid stacking multiple BNPL loans within short timeframes—it may still appear risky to some lenders.
Never miss a payment. One slip can now ding your score and delay major financial milestones like homeownership.
Build a diverse credit profile. If BNPL is your first experience with credit, consider adding traditional lines to round out your history.
Key Takeaway: Convenience is great—but don’t let a $40 payment plan on shoes ruin your shot at a $400,000 home.
🧠 Top 5 “Rest of 2025” Insights from NAR’s Chief Economist Dr. Lawrence Yun
“This isn’t theory—this is strategy fuel for every agent serious about finishing 2025 strong.”
Last week, over a thousand real estate pros (including me and Kreg) tuned in live to hear from Dr. Lawrence Yun, Chief Economist at the National Association of Realtors. It was candid. It was data-backed. And it was exactly the clarity agents and loan officers need as we hit the back half of the year.
Here’s what you need to know:
1️⃣ Mortgage Rate Cuts Are Coming—But Timing Is Messy
Fed members are finally signaling rate cuts may begin as early as July. But Yun warns: mortgage rates don’t respond cleanly to Fed policy. They move based on expectations, inflation trends, and global risk. Don't let clients "wait it out" for a Fed move—they could miss the window.
2️⃣ First-Time Buyers Are Delaying… and Paying the Price
The average first-time buyer is now 38 years old. That’s years of lost equity and wealth. With monthly mortgage payments now double pre-COVID levels, affordability is pinched—but delaying only deepens the long-term cost. Encourage the “start small, build big” mindset.
3️⃣ Boomers Are Bottling Up Inventory
Many longtime owners are aging in place—delaying downsizing and holding back move-up inventory. But once rates ease, this could unlock a wave of resale listings. Stay close to those empty-nesters—they may be your next sellers.
4️⃣ The Down Payment Myth Lives On
One of the biggest misconceptions? Buyers still think they need 20% down. In reality, 3%–5% down gets the job done for most—and many states have down payment assistance options that stack with those. Educate early. Win trust fast.
5️⃣ The Back Half of 2025 Will Be Stronger
Yun was clear: things are improving. As inflation cools and rate cuts arrive, more buyers will re-enter. He believes 2026 will be stronger than 2025, and most of the next 10 years will be growth years. If your clients are ready, help them move before the next wave hits.