Good signs for potential homebuyers

A month-long celebration

June is National Homeowner Month. The idea for this celebration came about exactly thirty years ago to celebrate the benefits of owning a home.

But while many Americans dream of buying homes, that dream can also cause a lot of anxiety.

We saw a recent survey that says 25% of Gen Z and 23% of millennials report feeling anxious simply about how to begin the homebuying process. Many say they don’t know whom to trust for advice. 

Many buyers also have misinformation. For example, 69% of U.S. adults believe mortgage rates are at all-time highs. They're not. Today’s rates, while higher than the pandemic lows, remain below the historical average of 7.7%. 

That’s where agents come in. 

In today’s newsletter, we are going to give you great talking points to share with your clients about the joys of homebuying and how buyers save for homes. In today’s Foundation Plans, we’re also going to bust some (unfortunately) popular myths about the homebuying process.

With that, let’s keep the celebration going, and get into today’s Blueprint!

- James and David

Homebuyer optimism on the rise

Fannie Mae’s Home Purchase Sentiment Index climbed to 73.5 in May, marking a 4.3-point increase from April and a 5.4-point gain since March. According to Real Estate News, this signals a gradual, but cautious improvement in buyer confidence. Here are key points from the survey:

• 26% of consumers believe it’s a good time to buy a home, up from 23% in April and nearly double the 14% who felt the same this time last year.

• 29% of respondents expect mortgage rates to decline over the next year, a slight uptick from April’s 26%, but still well below the 45% peak optimism seen in November.

• Active listings have surpassed 1 million for the first time since 2019, easing some of the supply constraints that have plagued the market.

• Home prices are showing signs of moderation, and properties are sitting on the market longer. Both of these trends give buyers more negotiating leverage.

• The economy added 139,000 jobs in May, with unemployment steady at 4.2%. This continued labor market stability likely keeps the Federal Reserve on pause during its June 17–18 meeting, tempering expectations for near-term rate cuts.

Our take

The mood is shifting. More buyers are warming up to the idea of jumping in, not because conditions are perfect, but because they’re finally improving. With inventory at a multi-year high and price growth cooling, buyers have options and leverage they haven’t had in years. The market isn’t roaring, it’s thawing. That means agents need to guide clients through a landscape that’s slowly turning in their favor, while managing expectations about mortgage rates and Fed policy. If you need help managing client communication, scroll down to today’s Foundation Plans, where we unmask many of the myths and misconceptions keeping many buyers on the sidelines.

How Americans feel about their homes

In honor of National Homeownership Month, Redfin commissioned a survey to study what Americans feel about their homes and what they’re willing to do to buy a home. Here’s what they discovered: 

Here’s how Americans feel about their homes:

• 74% of U.S. homeowners say they would rather be home than anywhere else

• 69% say that their home is a reflection of who they are

• 68% of homeowners say their home is the only place they can relax

• 68% say it’s the only place they can get a good night’s sleep 

• 64% say that they feel a sense of belonging to their neighborhood

Here’s how Americans accumulated the money needed for a down payment:

• 54% saved directly from their paychecks

• 27% sold another home

• 13% sold stock investments

• 13% received a cash gift from family

• 11% of homebuyers worked second jobs to make a down payment

Our take

As we mark National Homeownership Month, this survey reminds us why the dream of owning a home still resonates so deeply. Homeownership is about more than real estate; it’s about identity, belonging, and hard-won pride. Buyers make real sacrifices to claim a piece of stability. As agents, we don’t just help people find properties, we help them achieve that dream. While it’s important to discuss practical concerns like financing with clients, always remember to tap into those genuine emotions and sentiments. That’s what moves people, and that’s what moves deals

The current state of refinance mortgage originations

Mortgage activity continues to decline across the country. Only 1.4 million loans were originated for 1–4 unit residential properties in Q1, a 14% drop from the previous quarter and well below pre-pandemic levels, according to ATTOM’s Q1 2025 U.S. Residential Property Mortgage Origination Report. Here’s a breakdown of the quarter-to-quarter drop in loan activity: 

• Purchase loans fell 20% to 593,111

• Refinance loans declined 12.2% to 580,170

• HELOCs slipped 5% to 260,267

Despite the broader slump, refinance activity is still up 16% year-over-year, and some metro areas are bucking the trend with substantial gains in refi volume.

Here are the top 10 U.S. metros with the largest quarterly increases in refinance mortgage originations for Q1 2025:

1. Lubbock, TX: +70.4%

2. Sarasota, FL: +52.6%

3. McAllen, TX: +49%

4. Brownsville, TX: +48.3%

5. Asheville, NC: +46.7%

6. Wichita, KS: +41.2%

7. Tampa, FL: +39.8%

8. Spartanburg, SC: +30.1%

9. Anchorage, AK: +22.4%

10. Hagerstown, MD: +22.1%

Our take

Refinance activity isn’t just about chasing lower rates anymore, it’s about unlocking financial flexibility. Homeowners in metros like Lubbock, McAllen, and Asheville are tapping their equity for renovations, debt consolidation, or cash flow. This all can lead to listing activity down the line. Sellers may be getting their homes ready or shoring up finances ahead of a move. In a slow purchase market, tracking refi trends can reveal where future listings, and motivated clients, might emerge. Stay ahead of the curve by keeping an eye on these local numbers.

Schematics

The news that just missed the cut

• Home prices are surging as wealthy buyers are flocking to this island

• Major cities where buyers can get a home for $300K or less

• Use this template to turn your yard sign into a lead generator

• 11 ways to use ChatGPT for real estate

• Bob Newhart’s gorgeous LA townhouse hits the market for $10.5 million

Foundation Plans

Advice from James and David to win the day

Today, we wrap up our four-part series on how buyers – and buyer agents – can take full advantage of their leverage in today’s market. 

As we said up top, many buyers remain on the sidelines because of misinformation. They hear things about the market that simply aren’t true.

That’s why, today, we’re tackling some of the most persistent (...and annoying) myths keeping buyers stuck on the sidelines. 

• Mortgage rates aren't at historic highs. Yes, rates are up from the pandemic lows—but they’re still well below the 18.6% peak of the 1980s and under the long-term average of 7.7%. Waiting for rates to “come down” might not be necessary—or smart—depending on your timeline and goals.

• You don’t need a 20% down payment. FHA and other programs allow for as little as 3.5% down—and sometimes even less with targeted local or first-time buyer assistance. The 20% myth still scares off too many buyers who could already be in a home..

• A lower credit score doesn’t automatically disqualify you. Better credit usually means better terms, but many government-backed loans accept scores in the 500s. Don’t assume you’re disqualified—explore your options.

• Understanding APR and PMI can save you thousands. APR reflects the true cost of borrowing. PMI protects lenders, not buyers, and is usually required with less than 20% down. Understanding both can help you compare loans and plan monthly costs more accurately.

In today’s market, it’s more important than ever to arm yourself and your clients with the facts. You don’t need to know everything, but knowing the right things and sharing them with your clients can help them make smarter, more confident decisions. In a time when affordability is tight and anxiety is high, understanding your client's options is one of the few things fully in your control. Become the trusted advisor your clients are seeking. 

If you’re just reading this series for the first time, catch up on it by reading parts 1, 2, and 3 here, and check out this Realtor.com piece for a deeper dive into other common myths that are holding buyers back.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

“Just because you are doing a lot more doesn't mean you are getting a lot done. Don't confuse movement with progress!” – Denzel Washington

Progress isn’t about doing more, it’s about doing what matters most. Be intentional and focused in what you choose to do, friends. That’s how you build the business and life you want.

- James and David