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pportunity knocks in turbulent real estate market

    Loan officers are navigating a challenging landscape, but opportunities persist. Despite inventory concerns and mortgage rate uncertainty, clients with life changes still require home purchases or refinances. Elevated rates may deter some, but many have accepted the reality of today's environment.

    Andrew Chevalier, Movement Mortgage's market leader, compares the current market to 2008's post-housing crash era. Motivated buyers will enter the market regardless of rates, he says. "If you're sharpening your skills and staying in front of referral partners, opportunities will come."

    Inventory remains a hurdle, particularly for first-time buyers. Dan Rogers, Rate's regional manager, attributes this to the lock-in effect, where homeowners with low rates are hesitant to sell. This creates a logjam for entry-level buyers.

    Rogers sees the seller's market as an opportunity to educate consumers about higher rates being the new norm. "This is the new reality," he says. "Expectations of lower rates are not good in the near future."

    Kelly Price, Wintrust Mortgage's senior mortgage consultant, notes that lenders are seeing activity in 2025, but it's not translating into volume applications and closed deals. She's starting to see homeowners walk away from low rates as they become accustomed to higher rates.

    Rates in 2025 are likely to remain high due to stubborn inflation, a strong job market, and the Federal Reserve's reluctance to review rates. Chevalier estimates rates will hover around 7.2%, while Rogers expects them to stay around 7%. Price anticipates relief in the third or fourth quarter, with rates potentially dipping to 6.5%.

    Price divides homebuyers into "have-to" and "want-to" categories. The former are driven by job relocation, while the latter are motivated by combining households, needing more space, or downsizing. She's also seeing an uptick in older women buying homes.

    Chevalier's clients tend to be millennials near his age, with many being repeat homebuyers and a fair share of first-time buyers. He's also working with Gen Z investment buyers who are savvy but sometimes unrealistic about their budgets.

    Rogers notes that lenders developing more tech to make the process seamless for younger generations is helping. This includes making mortgages more attainable for gig workers and those with nontraditional incomes. The ability to upload documents and complete applications on a cellphone has been particularly helpful in bringing younger homebuyers into the market.

    However, Price emphasizes the importance of human consultation in the mortgage application process. Younger buyers may underestimate the value of expert guidance, which can lead to frustration when costs and rates change before closing.