Mortgage Update - March 24th, 2025
I turned 41 yesterday and was stuck in a car driving back from North Carolina.
There was no place I would have rather been.
Deep in the mountains of West Virginia, cell service was minimal. No work was getting done. It was just uninterrupted time with my girls. The peace, the grander of the mountains and the fresh air was incredible. I needed that recharge.
Let’s dive in!
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Read time: ~4 minutes
Can Federal Land be Home Sweet Home?
Affordable housing is a 🔥 hot topic 🔥—and now, there’s a task force backed by the Trump administration looking into whether federal land could be the answer.
The idea of leveraging federal land for affordable housing has bi-partisan support. Both 2024 presidential candidates promoted the idea.
There is plenty of land out there. The government owns over 25% of all US land, close to 650 million acres. But most of it is located in rural states like Idaho, Montana and Utah.
US Government Owned Land Shaded Green (Wall Street Journal)
According to the Wall Street Journal, 7.3% of all federal land (about 47 million acres) does fall within metropolitan areas that need more homes. Specific sites like Salt Lake City and Las Vegas could see the biggest benefit with infrastructure already in place.
Sounds promising, right? Not so fast…
💸 Infrastructure still needs to be built in any rural location—and that’s not cheap
🌲 Environmental pushback is coming if wildlife is disrupted
🧱 Material costs are through the roof and skilled labor is stretched thin
🏛️ Coordinating federal, state & local governments? Good luck
🙅♂️ And let’s not forget the ol’ “not in my backyard” crowd
📍 And let’s be honest—many rural areas just aren’t attractive to most people without jobs, schools, and lifestyle infrastructure. There has to be a reason to populate them.
Key Takeaway: Could it work? Maybe. But this isn’t a short-term play. It’s a long-game move with a lot of red tape. Still, it’s one of the few ideas getting support from both sides of the aisle—which makes it worth watching. 👀
Buyers Are Taking Bigger Risks Than Ever 😳
Affordability, mortgage rates and home prices are still the talk of the town in early 2025.
In a recent HomeLight Lender Insights and Predictions survey, buyers are taking more risks when buying a home. The majority of loan officers (71%) are seeing a surge in buyers willing to take on higher rates, unconventional loans, or homes that need work to make homeownership happen.
Multi-generational buyers, ADUs, non-QM, renovation loans…the game is changing for homebuyers.
How can agents lean into these shifts in consumer behaviors and market challenges?
🔧 1. Lean Into the Fixer-Upper Opportunity
71% of buyers are open to homes that need work. Agents can:
Highlight "value-add" properties and position them as customizable homes
Partner with contractors for "renovation consults" during showings
🏡 2. Target Multigenerational Buyers
With multi-gen housing on the rise:
Curate and market listings with in-law suites, finished basements, or room to build
Adjust search filters and listing descriptions to appeal to families looking to live under one roof
Create content or a buyer’s guide focused on multi-gen home setups
🧱 3. Spotlight Properties With ADU Potential
ADUs are becoming income generators:
Identify listings with zoning flexibility or existing basements, garages, or guest houses
Partner with lenders offering renovation or ADU-specific financing
Create social content or reels showing "how to turn a basement into an ADU"
🧾 4. Educate Buyers on Nontraditional Loan Products
With more buyers leaning into ARMs, buydowns, and non-QMs:
Host quick “Financing Friday” videos or in-person events with your loan officer to break down real-world examples
Proactively ask your LO for unique case studies to build buyer trust
Key Takeaway: When everybody else is talking about doom & gloom, be the hero and give people value in the changing environment. Meet clients where they are as their appetites change with the market.
Existing Home Sales Report Surprises Higher
Last week we got the February existing home sales report from NAR. Forecasts called for a sub 4M annual figure and shockingly the data landed at 4.26M.
That’s the highest number in about a year.
If you zoom out and look at the last 7 years, we are still crabbing sideways generally speaking, still much lower than the pre-Covid era.
However, this is a glimmer of hope in the existing home marketing where realtors and lenders have been frustrated with the lack of volume in recent years.
I shot my shot in early January and I’m on record stating 2024 was the bottom. This data point suggests I might be right 😏