Mortgage Roundup | First Impressions Matter

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Let’s make your job a little easier. The Empire Learning Mortgage Roundup newsletter brings you mortgage industry tips, market know-how, and CE updates—all in one quick email.

🗣️ Quote of the Week

"Number one - and I want you to emblaze this on your brain - you only have one chance to make a first impression."

– Judy Sheindlin (aka "Judge Judy" - TV Personality)

🚀 Featured Article

The Science of First Impressions

When you meet a new client, it only takes a few moments for them to form an opinion of you. In fact, people start making judgments within seconds (or even fractions of a second) of a first encounter. For real estate agents and mortgage loan officers, those first few seconds in front of a prospect can heavily influence the level of trust and comfort the client will have moving forward. A positive first impression can plant the seeds of a loyal client relationship, while a negative one might create doubts that are hard to overcome. This article will explore how factors like body language, tone of voice, and other small details shape client trust and loyalty. Along the way, we’ll share practical tips you can use to put your best foot forward when meeting prospects for the first time.

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🍁 Fall is Here Sale!

Fall and football are here! Take 20% off all real estate continuing education courses at Empire Learning this week. Use code FALL at checkout and experience the savings while earning those credit hours.

🍂 Browse CE Courses

Offer valid through September 14. Use promo code FALL at checkout.

🏆 Trending on Empire Learning

🏡 Homeownership as the Vanishing “American Dream”

Owning a home used to be the centerpiece of the American Dream, but today it’s feeling out of reach for a lot of folks. According to a recent Investopedia survey, 77% of Americans say buying a home is tougher now than it was for previous generations. With sky-high prices, steep mortgage rates, and a dire shortage of houses on the market (the nation was short about 4.7 million homes as of 2023), many younger people worry they’ll never own a place of their own. It’s a big mindset shift, but it also opens up a conversation about finding creative paths to homeownership, or even redefining what the “American Dream” means in 2025.

• Young buyers feel discouraged. These challenges hit Gen Z and Millennials hardest. In fact, 41% of Gen Z and 42% of Millennials who dream of owning a home fear they’ll never be able to afford it. That kind of anxiety is reshaping how younger generations view homeownership.
• Creative paths to owning. The good news is there are alternative routes. For example, many states and cities offer first-time buyer programs to help with down payments or closing costs, and some loans (like FHA mortgages) let you buy with as little as 3.5% down. Those lower upfront barriers can make a big difference for new buyers.
• Thinking outside the box. Some aspiring homeowners are trying non-traditional strategies. Co-buying a house with friends or family is becoming more popular, and fixer-uppers are another option. These homes often sell for less, so you can build equity as you fix them up over time. It’s a way to get in the game without paying top dollar for a move-in-ready place.
• Redefining the dream. Others are choosing to delay homeownership and invest in other areas instead. With other investments (like stocks or retirement accounts) more accessible and potentially offering higher returns, some people are focusing on growing wealth outside of real estate. It’s a reminder that owning a home is just one path to financial success, and not the only definition of the American Dream today.

◀️ Assumable Mortgages Are Back

In a high-rate world, taking over a seller’s existing FHA, VA, or USDA loan can be a cheat code for buyers. If approved, the buyer “assumes” the loan and keeps the seller’s lower rate and remaining term, which can be a big monthly payment win. It isn’t automatic. Servicers and the agency rules matter, and the buyer usually needs cash to cover the seller’s equity. This is a perfect place for MLOs to stand out by explaining what’s truly possible and what to watch.

• What’s assumable (in plain English). FHA says all FHA-insured single-family forward mortgages are assumable with lender/servicer approval and program rules met.
• VA specifics that matter. VA loans can be assumed, but sellers should know about the release of liability and entitlement issues, and servicers are obligated to process assumptions. The VA’s circulars lay out the process and remind servicers to comply.
• USDA can work too. For USDA Guaranteed loans, transfer and assumption are allowed under the rulebook, often keeping original terms or re-amortizing if needed. This is useful in eligible rural areas where USDA is common.
• Set expectations. Assumptions take time, can require a second lien or cash to cover equity, and not every servicer moves fast. A quick primer with clients on timelines and trade-offs keeps deals realistic and positions you as the expert who can actually get it done.

📈 Gen Z Turning to Stocks Over Homes

With home prices and interest rates through the roof, a lot of Gen Zers are rethinking how to build wealth, and many are looking to the stock market instead of the housing market. Rather than rushing to buy a starter home in their 20s, young adults are pumping money into investment accounts and stocks. The numbers tell the story. In 2015, only about 6% of 25-year-olds were actively investing, but by 2024, roughly 37% were doing so. That’s a sixfold jump in less than a decade, coinciding with an era of high housing costs. This trend is a great hook for mortgage professionals to get creative. Talking with young clients about blending investing with future homeownership, or helping them see how real estate might fit into their long-term plans once the market becomes more accessible.

• Priced out of the market. Sky-high real estate costs are a big reason for this shift. The median U.S. home price is around $410k (up nearly 29% from just five years ago), and mortgage rates are hovering near 6.5% for a 30-year loan, more than double the ~3% rates during the pandemic. With that one-two punch of expensive homes and pricey loans, it’s no wonder many young people feel locked out of buying a house.
• Investing instead of buying. Gen Z isn’t letting their money sit idle – they’re turning to brokerage apps and index funds. JPMorgan found that 37% of 25-year-olds put money into a retail investment account in 2024, versus just 6% of 25-year-olds back in 2015. In other words, a generation that might have been saving for a down payment is often choosing to play the stock market and grow a portfolio first.
• Delayed homeownership. Fewer young adults are becoming homeowners in their twenties. The median first-time homebuyer is now 38 years old (an all-time high), and a recent survey found 60% of Gen Z worry they may never be able to afford a home of their own. Those concerns are driving many to prioritize liquid investments (which they can start with smaller amounts) over tying up cash in a house.
• A balanced approach. Industry experts have noted that poor housing affordability is literally shifting young people’s savings toward stocks instead of homes. For MLOs, this is a chance to guide younger clients with a balanced strategy. Acknowledge the reality (it’s tough to buy now) but also educate them on long-term benefits of real estate. Maybe that means discussing “renting and investing” as a short-term plan, then outlining steps for eventually buying a home when the time (and interest rates) are right.

🎯 Quick CE Tip of the Week

⏳ Know Your Deadline. MLOs face hard cutoffs for license renewal and must finish by December 31st each year or risk losing the ability to originate loans until CE is complete and posted in NMLS. Remind yourself now so you’re not stuck in the annual stressful crunch.

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📈 Market Highlight: Wake Me Up When September Ends

🔥 Did You Know? As promised, here's a brand new market highlight for the month of September. We will start updating this at the beginning of each month, so if you've read through it at least once in any given month, you're good to go! This month, the national real estate and mortgage market is navigating a tricky balancing act. Both real estate agents and mortgage loan originators (MLOs) are finding that 2025’s housing scene feels very different from previous years. High mortgage rates have defined the summer, creating a bit of a “cruel summer” standoff between cautious buyers and stubborn sellers. Yet there are also bright spots, like stabilizing home prices and hints of relief on the rate front, that provide reasons for optimism as we head into the fall.

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💡 Feedback Welcome!

We'd love your feedback. The lifeblood of any good business is figuring out what their customers truly care about — the best MLOs also learn this about their clients.

If you have any thoughts, ranging from what topic should be discussed in next month's newsletter to more in-depth ideas on how the CE experience can be the best it can be, please reach out via the email link below — we're truly all ears.

Happy Learning,

— The Empire Learning Team
www.empirelearning.com