Innovative Mortgage and The Current Mortgage Market: What Loan Originators Need to Know

As a mortgage loan originator, staying informed about the market is essential to your success. You don’t want to be caught off guard when rates shift, homeowners start refinancing or purchase demand spikes. But with interest rates fluctuating, refinance opportunities coming and going, and market trends constantly evolving, how do you position yourself for success?

The key is preparation. Understanding today’s mortgage market, knowing where rates are headed, and having the right tools in place can help you close more loans—faster and more efficiently. In this article, we’ll break down key trends in the mortgage industry, explore upcoming refinance opportunities, and discuss why having a fast origination platform like Innovative Mortgage is a game-changer.

How to get ready for and capitalize on the Refi Rallies

Despite the recent cooldown in the housing market, a staggering 8.1 million homeowners are still locked into mortgage rates above 6%. That represents 16% of all outstanding mortgages, meaning a significant portion of borrowers could benefit from refinancing if rates dip.

For loan originators, this presents a massive opportunity. Many of these homeowners are likely waiting for the right moment to either refinance into a lower rate or sell their homes and move. The moment rates drop, even slightly, these borrowers will be looking for options—and you need to be ready.

Here’s what you should be doing now:

• Build a strong pipeline – Keep track of borrowers in your CRM who could benefit from a refinance. When rates dip, reach out to them immediately.
  
• Educate your clients – Many homeowners are unaware of how much they could save with even a small rate drop. Use email campaigns, social media, and direct outreach to keep them informed.
  
• Prepare for purchase demand – As rates ease, more homeowners may decide to move. Be ready to assist both buyers and sellers in securing financing.
  

There’s a clear opportunity ahead, but it’s all about timing. The originators who prepare now will be the ones closing the most deals when the market shifts.

Here is how much you could make in a Refi Rally if you are at Innovative Mortgage

Currently, mortgage rates are hovering in the 6-7% range, and many experts predict they’ll stay in this zone for the foreseeable future. While this may feel high compared to the ultra-low rates of 2020-2021, it’s important to remember that rates fluctuate frequently, and we’re likely to see short-term refinance rallies throughout the year.

A refinance rally happens when rates drop quickly—often for just a 2-3 week window—leading to a surge in refinance activity. These windows don’t last long, but they present incredible opportunities for loan originators who are ready to move fast.

The average mortgage size in the US as of February 2025 was around $397,500. Because you pick your comp and you get paid 100% of the compensation minus a small $595 flat fee here is what you could make if you lock 4 loans during a 2-3 week Refi Rally Window:

• Compensation = 2.75%
• Loan Size = $397,500
• Commission = $397,500 x .0275 = 10,931.25 - $ 595 = 10,336.25

Multiply that by 4 deals: 10,336.25 x 4 = $41,345

We had 2 separate 2-3 week rally windows last year and expect more this year.

How much would you make where you currently are? How much would you make your Manager? At Innovative Mortgage, you are your own manager - you are your own boss.

Check your Pay Raise Increase by clicking HERE and compare your current plan to what you could be making at Innovative Mortgage

To capitalize on these refinance rallies, you need:

• A fast, efficient origination platform – A slow loan process can cost you deals. Innovative Mortgage provides the speed and simplicity you need to close loans quickly.
  
• A proactive approach – Keep an eye on rate trends and be ready to notify clients the moment a rally starts. Those who act fast will secure the best deals.
  
• Marketing automation – Use automated email and SMS campaigns to reach clients immediately when a refinance opportunity arises.
  

We anticipate multiple refinance hot spots this year. The question is—will you be ready to take advantage of them?

Home Prices Are Starting to Slow Down—What That Means for Buyers

Over the past few years, home prices have surged due to low inventory and high demand. However, price growth is beginning to slow down. While prices are still increasing, the pace of appreciation has moderated, giving buyers a better chance to enter the market.

Here’s what’s happening:

• Home values are rising at a slower pace – Instead of double-digit price increases, most markets are seeing a more modest growth rate.
  
• More price reductions are happening – Some sellers are adjusting their expectations and lowering prices to attract buyers.
  
• Higher rates are keeping some buyers on the sidelines – This is leading to longer days on market for some listings, reducing bidding wars.
  
  

What does this mean for loan originators?

It’s an opportunity to educate buyers who may have been hesitant to purchase in a competitive market. Many assume home prices are still skyrocketing, but the reality is that more favorable conditions are emerging. Encouraging buyers to act now—before rates drop and demand spikes again—can help them secure better deals. Innovative Mortgage allows you to MAXIMIZE your earnings on each loan you close. I still hear originators talk to me about 80 bps and 100 bps for their comp. DO NOT LEAVE THAT MUCH MONEY ON THE TABLE!

The Lock-In Effect Is Starting to Weaken—Here’s What That Means

For the past two years, the housing market has been dominated by the lock-in effect—homeowners reluctant to move because they have ultra-low mortgage rates locked in from the COVID-era refinancing boom. With many borrowers sitting on rates in the 2-4% range, they’ve been hesitant to sell their homes or refinance into today’s 6-7% rates.

But this trend is starting to shift.

Economic uncertainty, rising consumer debt, and evolving homeowner needs are beginning to outweigh rate concerns. Borrowers are realizing that staying in place isn’t always the best financial move—especially with:

• Consumer debt at an all-time high – Credit card balances, auto loans, and personal debt are soaring, putting financial pressure on households.
  
• The rising cost of living – Inflation and economic volatility are leading many homeowners to explore cash-out refinancing to access home equity.
  
• Home improvement needs – Instead of moving, homeowners are tapping into their equity to renovate or expand their existing homes.
  
• Life changes that require moving – Job relocations, growing families, and downsizing needs are leading many homeowners to enter the market despite higher rates.
  
  

As a loan originator, this is a prime opportunity to educate your clients about their options. Many borrowers may not realize that a cash-out refinance can be a smart financial move, even in a higher rate environment. Others may need guidance on selling their home and securing a new loan.

By positioning yourself as a trusted advisor, you can help homeowners make informed decisions—and capture business that might have otherwise stayed on the sidelines.

Final Thoughts: Be Ready for What’s Next

The mortgage market is constantly changing, and staying ahead means being proactive, informed, and equipped with the right tools. Whether it’s helping homeowners with high-rate mortgages, capitalizing on refinance rallies, or guiding buyers through affordability challenges, your success depends on preparation.

Here are the Tools you get at Innovative Mortgage

• Simple and Technologically Advanced Origination System
  
• 100% Remote
  
• 80+ Lenders - If you can't find a home for a loan at Innovative, no one will be able to
  
• Correspondent and Broker Channels to give you complete flexibility
  
• 1099 option available if your state permits
  
• $595 flat fee per file and you keep the rest
  
• You choose your compensation % ( basis points per file)
  
• No Tiers - No Quotas
  
• 24 hours commission payouts when you fund on our correspondent channel
  
• Broker direct pricing and enhanced correspondent pricing. This positions you more competitively in a refi and purchase market and that means a higher capture rate on prospective clients that are shopping lenders
  
• We can have you transitioned to our platform in 24 hours
  
  

Now is the time to:

• Build your pipeline of potential refinance clients
  
• Stay on top of rate trends and market shifts
  
• Use a fast, efficient origination platform like Innovative Mortgage
  
• Educate your clients and position yourself as a trusted expert
  
  

When the market moves, you need to be ready. Take action now and stay ahead of the competition.

Are you ready to streamline your loan origination process and close more deals? Contact Innovative Mortgage today and see how we can help you succeed!