As competition for talent remains intense, major teams this week moved to Compass, eXp Realty and the Real Brokerage.

The Federal Reserve lowered its benchmark interest rate by 25 basis points on Wednesday, setting the target range at 4% to 4.25%.

The first cut since December 2024 marks a new phase in the central bank’s effort to balance maximum employment and stable prices. Economists say it could usher in an easing cycle with direct implications for housing.

“Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated,” the Federal Open Market Committee (FOMC) said in a statement.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.”

The move brings benchmark rates back to levels last seen in November 2022, when the range stood at 3.75% to 4%. Fed officials have acknowledged that inflation remains above their 2% annualized target, but they pointed to softening labor market data in the decision to lower rates, suggesting their stance may have become overly restrictive.

Inflation accelerated in August, rising 2.9% year over year compared to 2.7% in July, according to the U.S. Bureau of Labor Statistics. On a monthly basis, inflation increased 0.4%, double July’s 0.2% figure. Meanwhile, nonfarm payroll employment rose by only 22,000 jobs and the unemployment rate held firm at 4.3%.

Fed Chair Jerome Powell told journalists Wednesday that while the unemployment rate remains low, it has edged up. Job gains have slowed and downside risks to employment have increased. Inflation has risen recently and remains somewhat elevated, while changes to government policies — including higher tariffs — continue to evolve, leaving their effects on the economy uncertain.

Powell said a “reasonable base case scenario” is that these effects will be relatively short-lived. But they could also prove more persistent — a risk that needs to be managed. Based on this assessment, the Fed shifted monetary policy from restrictive to more neutral territory.

Wednesday’s Fed decision comes after sustained pressure from the Trump administration, which has pushed for faster monetary easing. Among the administration’s actions, it has shadowed Chair Jerome Powell, brought mortgage fraud accusations against Fed Governor Lisa Cook and installed Stephen Miran to fill the remainder of Adriana Kugler’s term through January 2026 following her resignation on Aug. 1.

Miran was the only official to vote for a 50-bps cut this week, a move typically taken when the Fed feels “policy is out of place and needs to move quickly,” which is “not at all what I feel, certainly now,” Powell said.

Regarding Miran’s ties to the Trump administration and concerns about Fed independence, Powell emphasized that there are 19 participants, with 12 voting on a rotating basis. “The only way for any voter to really move things around is to be incredibly persuasive (…) with really strong arguments based on the data,” Powell added.

Fed’s ‘dovish’ moves

The Fed also released its Summary of Economic Projections (SEP) after Wednesday’s meeting. Officials now expect the federal funds rate to end the year at 3.6%, compared to 3.9% in June.

The 2025 projection for the unemployment rate remained at 4.5% (edging lower thereafter), as did the 3% forecast for Personal Consumption Expenditures (PCE) inflation, with the 2% target expected to be reached in 2028. Real gross domestic product estimates were revised upward, from 1.4% in June to 1.6% in September.

“We have 10 participants out of 19 who wrote down two or more cuts for the remainder of the year, and nine who wrote down fewer than that — in fact, in a good number of cases, no more cuts,” Powell said. “We’re in a meeting-by-meeting situation; we’re going to be looking at the data.”

He also added that, “I hadn’t said that I thought a quarter-point would make a huge difference to the economy, but you’ve got to look at the whole path of rates, right?”

“Rather than a pivot, the cut is likely to be framed as a recalibration — an effort to preserve optionality as the economy slows,” First American senior economist Sam Williamson said in a statement. “Markets have swiftly priced in a more dovish Fed, with three rate cuts expected by year-end.” 

That shift has pulled 10-year Treasury yields lower, dragging mortgage rates down as well. HousingWire’s Mortgage Rates Center showed 30-year conforming loan rates averaging 6.45% on Tuesday — 19 basis points lower than a week earlier.

“Combined with a narrowing mortgage spread, mortgage rates stand at 11-month lows — offering home buyers a welcome affordability boost,” Williamson said. “Though the improvement is modest, housing’s sensitivity to rates means even small declines can unlock demand.”

Cotality chief economist Selma Hepp said the immediate impact to mortgage rates will be minimal, but the anticipated cuts for late 2025 and early 2026 could make a difference. Mortgage rates “are likely to continue trending toward the 6% range by the end of the year, although they are still expected to remain above 6%,” she added. 

“If the labor market shows signs of weakness or inflation continues to cool, it reinforces the case for further rate cuts, which could lead to a more sustained downward trajectory for mortgage rates,” Hepp said in a statement. “There are potential risks and competing forces to consider — if inflation persists or unexpectedly increases, it could cause mortgage rates to rise again.” 

‘Reactionary move’

Erik Schmitt, consumer direct executive for Chase Home Lending, said that it’s difficult to predict where rates will go as they don’t always move in predictable ways.

“While we are seeing positive indicators of lowering rates, there is always the possibility for rates to go up again,” Schmitt said, adding that Chase has seen increased demand from prospective buyers as rates have dipped in recent weeks. 

At New York-based Tomo Mortgage, CEO Greg Schwartz expects the Fed to keep easing with “roughly three cuts by year-end if incoming data on inflation and jobs continues to soften.”

“A single 25 bp cut is largely priced in, so the move alone should not swing mortgage rates much. Mortgages key off the 10-year Treasury, which reflects both the current decision and the forward path. If the SEP and press conference indicate the Fed is seeing moderating inflation and a softer economy, that could pressure the 10-year lower and nudge mortgage rates down” 

Foundation Mortgage CEO Marc Halpern characterized the Fed’s action as “a reactionary move, rather than a proactive one, aimed at reversing a slowdown in the economy.”

“This is particularly notable in the mortgage market, where lenders have already priced in at least two rate cuts this year,” Halpern said. “With only two Fed committee meetings left until next year, and considering consumers are showing increasing signs of stress as inflation remains stubborn, we may see a rate cut at every meeting until 2026.”

Mortgage lenders are recalibrating ahead of the Federal Reserve’s anticipated monetary easing cycle by rolling out rate promotions, streamlining operations and broadening product menus. They aim to capture demand while navigating affordability and margin pressures. 

Executives told HousingWire they’re preparing for renewed borrower activity as rates edge lower — but with caution, given political headwinds, inventory shortages and the risk of refinancing churn.

Chase Home Lending, for instance, rolled out a limited-time purchase rate sale in August and is now offering discounted pricing on rate-and-term and cash-out refinances through Sept. 21. The bank has also introduced a home equity line of credit (HELOC).

“It’s difficult to predict where rates will go exactly as they don’t always move in predictable ways. While we are seeing positive indicators of lowering rates, there is always the possibility for rates to go up again,” said Erik Schmitt, consumer direct executive for Chase Home Lending. “But we’re seeing increased demand from prospective buyers as rates have dipped in recent weeks.”

Schmitt added that Chase will “continue to evaluate products and offerings to see how we can help customers address affordability challenges as well as attain and sustain homeownership.”

Top lender United Wholesale Mortgage (UWM) has chosen to extend its 90 basis-point incentive for rate-and-term refinances until Oct. 1. Originally set to expire on Tuesday, this offer applies to conventional, jumbo and Federal Housing Administration (FHA) rate-and-term refis, as well as those covered by the U.S. Department of Agriculture.

Additionally, it includes FHA Streamline products, along with Interest Rate Reduction Refinance Loans (IRRRLs) and Type 1 cash-out loans available through the U.S. Department of Veterans Affairs (VA).

“We’ve experienced a busy few weeks and this extension is designed to help brokers maintain their competitive edge and continue the momentum we’re feeling in the wholesale channel,” a spokesperson for UWM told HousingWire via email.

More agile approach

Michael Gaines, senior vice president of capital markets at Cardinal Financial, said lenders are adapting by taking a more agile approach. 

“At Cardinal Financial, we’ve adapted by emphasizing product diversity and operational efficiency,” Gaines said. “Through our custom-built loan origination system, Octane, we can move quickly, control workflow, and deliver pricing that reflects real-time market conditions. This allows us to serve both purchase and refinance borrowers effectively, even as rates fluctuate.”

Cardinal has leaned into temporary buydowns, second liens and down payment assistance programs. These products “expand affordability without compromising stability,” Gaines said.

“These tools protect volume by keeping borrowers engaged and protect margins by aligning products with real borrower needs,” he added. 

Still, a refinancing wave carries risks. One is early payoffs (EPOs), which can create challenges for loan officers, lenders and investors. Gaines said that “strong investor relationships and clear communication are key to navigating it.”

Investors are well aware of the cycle dynamics, but proactive management helps maintain confidence while still serving borrowers who can benefit from refinancing, he added. 

‘Certainty and price’

At New York-based Tomo Mortgage, CEO Greg Schwartz said the company has focused on two pillars: “certainty and price.”  

The cost gap between competitive lenders and overpriced ones has widened to nearly $300 per month, Schwartz said. Rate sensitivity remains high as 85% of buyers have delayed their search at some point waiting for lower rates, while 75% still view today’s rates as unusually high, according to Tomo’s research.

“If policy signals reinforce a glide path lower, we would expect some of those sidelined buyers to reengage,” Schwartz said. He added that Tomo offers “among the lowest rates and publishes those real rates (not teaser rates) on our site for all to see.” 

Closing speed is another differentiator. During the pandemic-era refi boom, many lenders struggled to close on time due to capacity constraints. Schwartz said Tomo has maintained an on-time closing rate of 98%, compared to an industry average of 40%.

Looking ahead, Schwartz estimates rates would need to fall another 1.5 percentage points to return affordability to pre-pandemic levels. Still, he cautioned that politics may weigh on consumer sentiment.

“Although President Trump’s criticism of the Fed and Chair Jerome Powell has drawn significant attention, only a small share of homebuyers (20%) believe the political process will move rates.”

Cotality chief economist Selma Hepp mentioned another challenge to the industry: “The current housing market remains constrained by a lack of inventory in many parts of the country,” she said.

“A modest drop in mortgage rates may not be enough to incentivize sellers to put their homes on the market, meaning any increase in buyer demand could put upward pressure on home prices, offsetting the benefit of a lower rate,” Hepp added.

Last week, Traditional Mortgage Acceptance Corp. (TMAC), dba GoodLife Home Loans, announced a leadership change when it promoted Chase Kinder to lead its wholesale division.

GoodLife is the country’s fourth-largest originator of Home Equity Conversion Mortgages (HECMs), according to the most recent industry data from Reverse Market Insight. The company endorsed 1,344 HECM loans during the year ending in July 2025. And on a year-to-date basis, GoodLife is the nation’s fastest-growing HECM lender among the top 10 players — upping its volume by 66% while increasing its market share from 3.4% to 5.2%.

Kinder, who joined GoodLife in late 2023 and previously served in its wholesale division as a senior account executive, spoke with HousingWire’s Reverse Mortgage Daily earlier this week about his priorities in the new role. He said the company is looking to grow its presence and eventually challenge Mutual of Omaha Mortgage, Finance of America and Longbridge Financial at the top of the industry leaderboard.

“We are working on expanding our wholesale and retail presence, which I think will essentially capture the market share that we’re going to need to be at spot one, two or three, so to speak,” Kinder said. “Expanding retail, expanding wholesale, and just continuing to offer good service to partners, good pricing, I think that will lead in itself to capturing more market share as we go on.”

In May, GoodLife launched a retail division led by Linda Weilert and Catalina Gonzalez, who previously served in the reverse division at Open Mortgage. Along with loan officers Marilyn Brown Ross and Chris Weilert, the four collectively possess more than 40 years of reverse-specific experience.

While other leading reverse companies have explicit broker protection plans in place, Kinder said that GoodLife hasn’t needed one simply because of the size of its retail shop.

“Our retail team is very small compared to some of the bigger lenders, where they have a massive retail operation that could work essentially as a servicing retention department. We don’t have that at TMAC,” he said.

“[Broker protection] has come up in conversations, but we don’t have the capacity to go after existing clients, or maybe somebody whose loan we’re servicing, compared to some of the other folks. So it’s like we have broker protection without essentially having it or putting it out there publicly.”

Proprietary products have become a hot topic across the reverse mortgage industry in the past year. GoodLife has its own proprietary product under the Meridian brand, with loan sizes up to $4 million.

Kinder said the company is seeking to expand these options in the “near future” due to perceived demand. Prospective borrowers under the age of 62 may want them as an alternative to a HECM, or because rising home prices in certain regions may push their borrowing capacity past the current HECM limit of $1,209,750.

“We do see a need for additional proprietary products in the space,” Kinder said. “They are good loans with great investors. The only real cons of those, sometimes the interest rates could be a little bit higher. But they do accommodate some higher loan amounts.”

He also touched on a growing senior population with a variety of needs, from aging-in-place renovations and debt consolidation goals to simply creating a more secure retirement.

“I don’t think this product is going anywhere anytime soon,” Kinder said. “And I think some of the revisions that FHA made to this product with the financial assessment has really made it a lot safer for seniors over the years.

“I think that demand is going to continue to increase. As long as we’re positioned to handle that volume with staffing, with some different products, I think we’ll place ourselves in a good position.”