Originators are entering the spring homebuying season with a set of new challenges: President Trump’s tariffs have disrupted markets, leaving an uncertain path forward in terms of housing construction and threatening homebuyers’ purchasing power. Meanwhile, the Fed has signaled a rate cut will likely be further delayed amid continued inflation concerns. In a market full of mixed signals, many are understandably tempted to react to every new headline. But in moments like these, stability becomes a key differentiator for originators.
Headlines that speculate on the economy may dominate the news cycle, yet they often miss the full picture. While the markets trudge through short-term swings, the long-term outlook for housing remains bright due to strong fundamentals.
The risk in waiting for perfect timing
In this volatile environment, trying to time the market has become more of a gamble than a strategy. With daily swings in mortgage rates and fluctuating economic signals, borrowers looking for the “perfect” moment to lock in rates often end up disappointed. In the process, originators risk losing buyers’ trust.
Over the past several weeks, many borrowers held out, expecting rates to drop. But sudden market moves—like tariff headlines, shaking the bond market—instead caused rates to tick higher. For originators, the message is clear: helping borrowers take timely action is far more effective than chasing the fantasy of ideal conditions. To avoid costly delays and missed opportunities, borrowers should be encouraged to act when they’re financially ready rather than wait for a hypothetical scenario.
Unlocking potential with alternative lending opportunities
Unlike the conventional market, where rate shifts often trigger rapid changes in underwriting, non-qualified mortgage (non-QM) guidelines have remained consistent or, in some cases, expanded. That reliability is helping more borrowers qualify for financing when traditional paths fall short. At the same time, traditional activity may be cooling down as many homeowners choose to stay put, holding on to their low-rate first mortgages and instead tapping into their home equity through home equity lines of credit.
Alternative lending options present a clear opportunity for originators to serve a broader array of borrowers, whether they need to access their home’s capital or just don’t fit conventional lending requirements. As purchase activity moderates in some regions, these products offer a way for originators to expand their business and maintain momentum during a transitional period. Given today’s economic turbulence, this kind of flexible financing can help originators meet real-time borrower needs with solutions that conventional lenders may overlook.
Hope for a more balanced spring homebuying season
While national housing data is still catching up, anecdotal signs point to a market in flux. Originators are seeing more listings and more frequent price reductions—trends that were far less common just a year ago. This could signal the beginning of an increasingly balanced supply-and-demand dynamic heading into the spring buying season.
If these promising trends continue, they may open the door for buyers who’ve been waiting on the sidelines. For originators, this is a chance to reconnect with borrowers who were priced out or discouraged by intense competition in recent years. Right now, the advantage may be starting to lean toward buyers.
Tune out the noise: Staying grounded despite uncertainty
In today’s unsettled market, borrowers don’t need predictions; they need perspective. Amid rate swings, policy shifts, and conflicting headlines, originators who lead with steadiness stand out. That means focusing less on timing the market and more on offering consistent guidance, practical solutions, and products like non-QM to meet real borrower needs.
Staying the course is more than just a strategy—it’s a competitive edge. This spring and beyond, borrowers will turn to the originators who show up calm, confident, and prepared.
Tom Hutchens is the President of Angel Oak Mortgage Solutions.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
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