Mortgage demand drops to lowest level since May

👋 Good morning. This is Mortgage Nuggets - the newsletter that brings you all the best & latest mortgage news. Always fresh, no fluff. Today’s newsletter is a 2.5-minute read.

1. Mortgage demand drops to lowest level since May

Total mortgage application volume dropped 3.8% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

• Applications for a mortgage to purchase a home dropped 6% for the week and were 17% higher than the same week one year ago.

• Applications to refinance a home loan fell 1% for the week and were 30% higher the same week one year ago.

• The average interest rate for 30-year fixed-rate mortgages with conforming loan balances, $806,500 or less, decreased to 6.83% from 6.84%.

2. Senate bill would require GSEs to consider unconverted crypto in mortgage underwriting

Sen. Cynthia Lummis (R‑Wyo.) introduced the 21st Century Mortgage Act (S.B. 2471) yesterday, which would require Fannie Mae and Freddie Mac to include unconverted crypto held on US‑regulated centralized exchanges in single‑family mortgage risk assessments without forcing borrowers to convert them to dollars.

It follows an FHFA directive from Director Bill Pulte. Lummis noted that homeownership among adults under 35 stands at 36.6 percent—the lowest since 1982—and that 67 percent of crypto owners are under 45.

Senators Jeff Merkley, Elizabeth Warren, Chris Van Hollen, Mazie Hirono and Bernie Sanders warned that using unconverted cryptocurrency in underwriting could threaten housing‑market stability because of the market’s volatility and limited liquidity.

Increase your ROI up to 5x with our Intelligent Marketing Solutions

Mortgage brokers who are looking to save time and reduce spending on their tech stack are seeing great results with our Marketing Solutions. In fact, we have seen organizations boost their ROI on their marketing spend nearly 5x using our single, easy-to-use platform.

Make Araya your single source for Intelligent Marketing Solutions. We offer brokers four powerful solutions in a single monthly or annual subscription plan:

• Engage your clients with OneHomeowner and turn your clients into lifetime customers.

• Get in front of your clients sooner – when clients are showing purchase intent – with Precision Marketing.

• Expand your referral networks and uncover market opportunities with Market Intelligence.

• Get detailed property-level information on over 99.9% of U.S. residential properties with Property Intelligence.

To see more about how we’re helping originators succeed in any market and how you can boost your ROI, check out our comprehensive suite of solutions and schedule a demo with us today!

3. More Nuggets

💸 Home prices post smallest increase in nearly two years, offering buyers a reprieve. (MarketWatch)

🏘️ Why Americans love gated communities. (CNBC)

👷 Spreading housing market softness sees this $23 billion builder offer $50k incentives per sale. (ResiClub)

📝 NWMLS says it has ‘no duty to deal’ with Compass. (HousingWire)

⚖️ Former LGBTQ+ Real Estate Alliance CEO facing civil suit, multiple criminal charges. (inman)

4. Homeownership rate dips to lowest level since 2019

The homeownership rate edged down to 65% in the second quarter, as affordability challenges continue to squeeze buyers. According to realtor.com, it is the lowest rate since the third quarter of 2019. After peaking in 2020, the rate has hovered between 65% and 66%, held back by high prices and limited affordable supply. Here are the key takeaways:

• The Midwest leads all regions in homeownership at 69.5%.

• Homeowner vacancy held steady at 1.1%, still tight by historical standards.

• Rental vacancy fell to 7%, with principal cities highest at 7.6%.

• The South had the highest rental vacancy at 9%, while the Northeast had the lowest at 5.2%.

• Among all demographic groups, only Hispanics saw a year‑over‑year increase; all other groups declined.

• Homeownership among buyers under 35 dropped to 36.4%, the lowest rate since before the pandemic.

5. Anthony Hsieh reclaims CEO role at loanDepot

Anthony Hsieh returned as permanent CEO of loanDepot, the company he founded in 2010. He had been interim CEO since Frank Martell’s departure on June 4.

Hsieh, who also chairs the board and is the controlling shareholder, will focus on restoring profitability, regaining market share and accelerating AI adoption. loanDepot, once the second‑largest US retail lender, ranked 20th with $10.9 billion in originations in the first half of 2025.

In Q1 the firm posted a $40.7 million net loss—a 43 percent improvement year over year—while origination volume rose 14 percent to $5.2 billion. Hsieh plans to add top tier executives within 90 days and will leave his compensation unchanged.

☀️ You’re all caught up. See you on Friday!

🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.

Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.

Was this email forwarded to you? Subscribe here.

Interested in advertising to 40k+ loan officers? Get in touch.