T
hinking big about residential real estate success requires a broad perspective. Industry Decoded features industry experts who can enrich your understanding of the issues affecting the industry as a whole. The views expressed in this column are solely those of the author.

    The mortgage industry is on the cusp of profound transformation, driven by technological breakthroughs, societal shifts and economic pressures. By examining trends shaping the market, we can make bold predictions about what's to come. These events may not happen in 2025 or beyond, but they're interesting ideas to consider.

    Here are five audacious predictions for the mortgage industry:

    1. AI-driven mortgage approval processes become standard. Artificial intelligence is rapidly reshaping financial services, and mortgage lending is no exception. By the end of 2025, AI-driven mortgage approval systems will enable near-instant loan decisions and transform the loan process. However, concerns about bias persist, and regulators will increase scrutiny to ensure fair lending practices.

    2. Rates skyrocket as global markets shift. A bold prediction: Mortgage interest rates will rise to their highest levels in decades, potentially exceeding 10% in some markets. This sharp increase will be driven by a combination of global economic pressures, central bank policies and inflationary trends. Borrowers will need to adapt by considering adjustable-rate mortgages or shared-equity financing.

    3. Space-based mortgages for off-planet homes become a reality. While this may sound like science fiction, companies are developing plans for off-planet living. Financial institutions are exploring the legal and logistical implications of space mortgages. Although owning property off-planet might be reserved for the ultra-rich initially, the implications are profound.

    4. Homeownership expands to gig workers. The gig economy presents unique challenges for traditional mortgage lenders. By 2025, we predict that lenders will adapt to non-traditional borrowers by offering innovative products. New credit models and policy changes may also bolster this trend.

    5. Big Tech enters the mortgage business. Tech giants like Amazon, Google and Apple are exploring financial services. Their potential entry into the mortgage space could disrupt traditional lending models and streamline customer experiences. However, concerns about dominance and privacy issues will need to be addressed.

    Change is coming to the mortgage industry. From AI-enabled efficiency to new opportunities for gig economy workers, the future promises greater inclusivity and innovation. The challenge is clear: Embrace change while safeguarding fairness and security.