HomeLight’s Q2 2025 Lender Insights & Predictions Report launches today, revealing how loan officers are navigating economic uncertainty (recession and tariff fears), clogged pipelines, and shifting buyer behavior amid persistent high rates.
Key findings include:
- Recession worries:63% of loan officers say the U.S. is headed for a recession; 57% expect borrowers will delay home searches as a result.
- Mortgage rate buydowns on the rise:58% of lenders are seeing increased demand for buydowns, with 2-1 buydowns overwhelmingly popular among buyers looking to soften initial costs.
- Seller concessions climb:21% of loan officers are seeing more sellers covering buyer costs (agent fees, closing costs) to keep transactions on track.
- Pipeline congestion:50% of lenders report more deals being canceled, pinned largely on inspection findings, financing challenges, and buyer hesitation.
- Tariffs raise alarms:Loan officers worry new tariffs will spike construction costs, further constraining affordability.
- Buyers urged to act:Lenders predict that if interest rates drop to an actionable level, prices could spike by an estimated 16%, and are urging clients to move sooner rather than later, warning of price spikes if rates drop.
- Market unlock rate: 36% of loan officers say that buyers and sellers hope interest rates will drop to at least 5.75% before making a move.
The full report is here
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