Weekly mortgage demand suddenly surges

🐪 It's Wednesday. Thanks for joining us. Today’s newsletter is a 3.5-minute read.

1. Weekly mortgage demand suddenly surges

Mortgage interest rates dropped for the second straight week, although not by a lot. That was thanks to more negative news on the economy. But despite all that, weekly mortgage demand surged higher by 11%, according to the MBA.

• The average interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 6.84% from 6.89%.

• Applications for a mortgage to purchase a home rose 11% for the week and were 13% higher than the same week one year ago. Driving the increase was a surge in demand for conventional loans.

• Applications to refinance a home loan also rose 11% for the week and were 51% higher than the same week one year ago. That demand was driven by Veterans Affairs, or VA, loans , which rose 26% for the week.

2. Crypto mortgages gaining traction

According to a report by Realtor.com, cryptocurrency is becoming a viable path to homeownership, with fintech firms like Milo offering crypto-backed mortgages. Buyers can use bitcoin or ethereum as collateral—without selling—securing up to 100% financing and skipping traditional credit checks.

Though still niche, the market is expanding. Currently valued at $8.6 billion, crypto mortgages are projected to grow to $45 billion by 2030. They appeal to investors purchasing second homes or high-end properties, especially in states like Florida and California.

The approach carries unique considerations, including asset volatility, which can trigger margin calls and affect loan terms. Still, for some buyers, crypto-backed mortgages offer an alternative to traditional financing models.

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3. More Nuggets

👟 HOME announces the first shoe designed for mortgage women. (HOME)

📉 Redfin unfazed by 2% revenue drop as it finalizes deal with Rocket. (inman)

🎥 FHFA's Pulte says agency is building on ideas from first Trump term. (Bloomberg)

📊 Prospective homebuyer: Unknown rising expenses due to tariffs cause hesitation for new mortgage. (CNBC)

💰 Compass introduces ‘Family Office’ division for ultra-wealthy clients. (HousingWire)

🧪 A man willingly got bitten by 200 different snakes to save lives. (MET)

4. UWM posts net loss of $247M for Q1 2025

United Wholesale Mortgage reported a first-quarter net loss of $247 million on total revenue of $613.5 million, down from a profit of $180.5 million during the same period last year.

A $388 million reduction in the fair value of its mortgage servicing rights portfolio impacted the results, the company said yesterday. The lender's loss in the first quarter follows a profitable fourth quarter, when it posted net income of $40.6 million.

5. New homes prices continue to drop as existing rises

The median price of a new single-family home fell to $416,900 in Q1 2025, just $14,600 above the $402,300 median for existing homes, according to federal data—well below the five-year average price gap of $26,700.

New home prices declined 2.3% year-over-year, continuing an eight-quarter slide, while existing home prices rose 3.4%, their seventh straight quarterly increase. Builders are responding to affordability pressures with smaller homes and incentives, while tight inventory and high mortgage rates keep existing home prices elevated.

Regionally, new homes were most expensive in the Northeast ($784,900), but existing homes in the West led all markets at $626,000.

6. States step up mortgage oversight as CFPB pulls back

According to a report by HousingWire, states are increasingly taking the lead in mortgage enforcement as the CFPB reduces its supervisory activity. With fewer federal exams, state regulators and attorneys general are stepping into the consumer protection role, each bringing different priorities and interpretations.

Industry leaders say enforcement now varies widely by state, with some focused on appraisal independence, others on loan officer compensation or third-party fees. Several states are also introducing Community Reinvestment Act-style requirements for nonbank lenders, signaling a broader regulatory push.

This growing patchwork of oversight presents new compliance challenges for independent mortgage banks, especially those operating across multiple states. As enforcement becomes more decentralized, firms are preparing for a more fragmented and politically driven regulatory environment.

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

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