“I’ve been encouraging clients that if you can afford a house today at these interest rates, now’s the time to act on it,” Todd told Mortgage Professional America. “In most markets, when you start to see rate declines, you’re going to see more competition in the market. You’re going to see more buyers because it’s just going to let more buyers in.”
Eric Hagen of BTIG says falling rates and steady capital flow leave the housing market stable despite the shutdown. He notes lower volatility, strong non-bank originators, and resilience unless the disruption stretches beyond two weeks.https://t.co/Dr1Q64vCiv
— Mortgage Professional America Magazine (@MPAMagazineUS) October 2, 2025
The other advantage of jumping into the market as soon as possible is that it allows new homeowners to begin building up equity. Even though home prices have cooled in recent weeks, the historical trends show values will continue to increase gradually. Then, when those buyers are ready to refinance, they’ll have the option to do a cash-out refinance if needed.
“Theoretically, property values will continue to go up,” Todd said. “If you can get in now and afford it now, then you’re set up for refinance to a lower rate. Hopefully, in that period of time, it will have built up a bunch of equity. Even if appreciation goes back to 2.5% to 3.5%, which is a normal market, that’s a lot of money when you compound it.”
Economists frustrated as well
It’s not just veteran brokers who are struggling with rate forecasts. Selma Hepp, chief economist at Cotality, is one of the most respected voices in the industry. Even she is stunned by some of the challenges in market forecasting.
“It’s so hard to make a call these days, because you expect things to work in one direction, because they’ve always worked in that direction, and now they’re working in a different direction,” Hepp told Mortgage Professional America. “I’m having a hard time these days, really figuring out whether we’re going up or down or left or right. I don’t have a good sense of things. I really don’t.”
