The stock market has experienced significant swings recently, leaving lingering questions about where the economy is headed.1 In an environment like this one, hopeful homebuyers might have some questions about signing onto a mortgage. It’s at times like these that mortgage professionals can offer extra support to borrowers as they navigate murky waters.
We have a few tips for how mortgage professionals can guide borrowers amid shifting markets.
Understanding Market Shifts
Concerns about tariffs have had a ripple effect across the economy, impacting investor confidence and even indirectly impacting mortgage rates.2 Mortgage rates are always unpredictable, but we currently face an environment of elevated uncertainty.
We at Newrez believe that a customer’s decision to buy a home should be based first and foremost on their own goals and financial ability. After all, waiting for the “right time” to buy a home based on the shifts of the economy, housing market and mortgage rates could cause hopeful buyers to sit on the sidelines longer than they’d like. The wait-and-see game carries no guarantees.
That’s why it’s so important for great mortgage professionals to provide great service to their borrowers – always, but especially in times of change.
How to Support Borrowers
Education: What Influences Mortgage Rates
First up, empower borrowers by giving them some insight into the factors that impact mortgage rates. Let them know that rates aren’t set by lenders – rates are driven by the market. Mention these major influences:
- The 10-Year Treasury Yield: Historically, when the 10-year treasury yield rises or falls, mortgage rates have often followed the same pattern. The two are closely linked because government bonds and mortgage-based securities generally compete for the same investors.3 Additionally, demand for both is impacted by similar economic factors, like inflation and employment rates.
- The Federal Reserve: Economic policy and the federal funds rate can have an indirect impact on mortgage rates, since the federal funds rate affects the cost of borrowing money.
- Inflation: Increasing inflation sometimes contributes to rising mortgage rates.
- Economic Growth: On one hand, an increase in employment sometimes results in a more active housing market, but on the other, economic prosperity can sometimes push mortgage rates higher.
- Current Events: Elections, war and geopolitical relationships may have an indirect impact on mortgage rates.
- The Housing Market: Rates could fluctuate depending on the supply of homes available or the amount of demand for new homes.
If you’d like more detail about these factors so you can better educate borrowers, refer to this article.
Rate-Cushioning Perks: Newrez Lock and Shop***
Periods of economic uncertainty could be an ideal time to tell clients about programs like Newrez’s Lock and Shop, which enables borrowers to lock in an interest rate for 45 days while they hunt for a house. This can give homebuyers peace of mind, allowing them to take their time finding the perfect house without worrying that interest rates will suddenly climb. If rates go down, they’re able to relock at no additional cost. Learn more.
Giving your clients a heads up about perks like this shows them that you’re looking out for their interests in the midst of an uncertain market.
Responsive Customer Care
Newrez strives to provide a genuine personal touch with our loan services. We talk one-on-one with clients about their financial circumstances, walk them through their options and answer their questions. Ongoing and transparent communication is essential to a positive customer experience.
This approach carries even more weight when mortgage rates are less-than-steady. Lenders and brokers can act as a reliable point of contact for borrowers, offering a regular flow of information and helping to assuage concerns about the market.
Dynamic Mortgage Products
We offer a diverse stack of loan products, from more traditional products to loans that meet the needs of borrowers in more unusual financial circumstances. More typical loans include:
- Conventional loans
- Federal Housing Administration (FHA) loans
- Veterans Affairs (VA) loans
- U.S. Department of Agriculture (USDA) loans
- HomeReady® and Home Possible® loans
We also offer:
- Jumbo loans
- Asset Qualifier loans
- Bank Statement loans
- Debt Service Coverage Ratio loans
- Renovation loans
Carrying a wide variety of products lets borrowers find a loan that works best for them. Some of these loans offer lower down payments than Conventional loans, or enable borrowers to qualify with less-than-perfect credit or more unusual forms of income. These features may make a financial difference for clients in a tricky mortgage rate environment.
Clear Pricing and Fee Structures
As a mortgage professional, you can be there for your clients by helping them understand all of the costs involved with buying a home or refinancing.† The law requires lenders to provide pricing and fee information in writing, but those documents may still be confusing to many borrowers. Walking them through costs could go a long way toward building trust with your clients.
Staying Steady During Market Shifts
If your clients express concerns about the economy, the housing market or mortgage rates, hear them out—and then tell them about all of the ways you can support them through uncertainty. You can still give borrowers a great experience from application to closing even in the midst of a choppy market. It’s all about education, customer support, great loan options, streamlined processes and a network of resources.
HomeReady® is a registered trademark of the Federal National Mortgage Association. Home Possible® is a registered trademark of the Federal Home Loan Mortgage Corporation. None of the above-mentioned companies are affiliated with Newrez LLC.
References:
1 Uncertainties Are Churning U.S. Stock Market Outlooks
2 Mortgage Rates Today, Apr. 21, 2025: Uncertainty for the Economy, Markets and Mortgage Rates
3 How does the 10-year Treasury yield affect mortgage rates? Experts explain - CBS News