Mortgage Update - March 3rd, 2025
If this week didn't get you jazzed for what's to come, I'm not sure what will! The weather is warming, the days are getting longer, inventory is on the rise, and rates are coming down.
I can feel spring right around the corner!
There's a lot going on in the real estate / mortgage world! So let's dive in!
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Read time: ~4 minutes
Mortgage Rates Droppin' Like It's 🔥
Friday night, Nick and I hit up our favorite El Vaquero joint for our end-of-the month dinner tradition—reminiscing about the past month. While we both chowed down on our favorite #171 dish, we couldn't help but agree that something was just "different' about this current market. It felt like for the first time in forever, we were heading into a Spring market with mortgage rates on a downward trend.
Being the big nerds we are, we pulled up charts from the first quarter of the past five years to see if our instincts were correct. Sure enough, the numbers don’t lie—this is the first time in five years that we’re entering the spring market with rates on a downward trend! Let's gooooo! Check out the charts below:
This is great news for all of us in the real estate industry! For the first time in years, we’re seeing rising inventory and falling mortgage rates—right as we enter the busiest season of the year.
Shout it from the rooftops —- now is the time to get off the fence and make that dream home a reality!
Key Takeaway: It's been years since we have encountered a spring market with falling interest rates. Buckle up—this could ignite a buying frenzy as pent-up buyers finally jump off the fence and into the market!
Stay Alert 🚨 - Attorney Who Fought NAR may be Coming After 🫵
LISTEN UP đź‘‚ This might be the most important topic we have discussed in our newsletter!
Last year's NAR settlement has made one thing clear—the real estate industry has low-hanging fruit for money hungry attorneys. Case in point: Douglas R. Miller, one of the leading attorneys behind the NAR lawsuit. His last round of legal action against the industry was so successful that he’s not just considering another—he’s already moving forward with it.
So, where will he strike next? He told us last week exactly what his next move will be…he’s coming after everyone.
Here’s exactly what he said:
First, if you don't follow the key individuals shaping your industry, you should be. What they say and do can directly impact your business—both now and in the future.
Second, the significance of the post above is absolutely insane. We all know this business model is the foundation for countless brokerages. And let’s be clear—if your brokerage engages in any of the following, the target is on your back:
If your company has a relationship with a title company where money exchanges hands—you’re a target.
If your company has an in-house lender—you’re a target.
If your company has an affiliation with a home warranty or inspection company—you’re a target.
I get it—business is slow, and everyone is looking for additional revenue streams. But at the end of the day, we have to ask ourselves: Is our license worth the extra income from these additional in-house services?
Our fiduciary duty to our clients must come first. If you’re in a marketing agreement and you know your partner is charging higher fees or rates to offset your marketing costs, that’s a serious problem. Clearly, if they have to pass those costs onto the client, they’re not in a financial position to be contributing in the first place!
Just recently, we heard from an agent about a lender who hesitated to promote a down payment assistance program to their client—not because it wasn’t beneficial for the buyer, but because it didn’t pay them as much, and then they wouldn’t be able to contribute to the agent’s marketing costs. Seriously, WTF?! This is exactly why these attorneys are breathing down our necks!
Now is the time to re-evaluate every partnership you have. Align yourself with partners who uphold the same integrity and values as you do. Because if we don’t put our clients first, we won’t have a business to protect for much longer.
Key Takeaway: It's clear the attorneys are out for blood. We must always remember our fiduciary duty to our clients. Before engaging in a joint service, think twice—if it’s not truly in your client’s best interest, it’s not worth the risk.
Will Rates Continue to Drop? Big Week Ahead!
This is a HUGE week for mortgage rates! Reason being, it's a full week of employment data. Remember, the job market is one of the biggest factors influencing mortgage rates.
Here’s what to watch:
📅 Wednesday & Thursday – ADP Employment Report & Initial Jobless Claims: Key employment data drops on both days, which could cause significant rate movement depending on the results.
📅 Friday – February Jobs Report: This is the most impactful jobs data of the week.
Fewer jobs than expected? Mortgage rates are likely to decline.
More jobs than expected? Mortgage rates could rise.
On top of that, we have nine Fed speakers scheduled this week. Expect them to reinforce the need for more proof that inflation is cooling before they decide to cut rates. Right now, the market anticipates one to two Fed rate cuts before year-end—let’s see if this week’s data shifts those expectations!
Join Us For March Madness - March 20th
Realtor friends, it’s tournament time, and we’re kicking off the madness in style! Join us at Lower.com Field on Thursday, March 20th, from 11 AM - 6 PM for a full day of hoops, food, drinks, and giveaways! 🎉
Come hang out, catch the first round of the college basketball tournament on the big screens, and enjoy the action from the Lower.com Lounge. Whether you stay for a game or just drop in for a drink, it’s the perfect way to celebrate the big dance with great company!
RSVP now and let’s get the brackets rolling! 🏀🍻