February 14, 2025

Is the 2025 Spring Buying Season Taking Shape?

By Brian Devlin, CEO, Arc Home

Spring is traditionally the busiest time of year for home sales, but in today’s market, the usual seasonal trends are being met with economic realities that continue to challenge buyers and sellers alike. While mortgage rates have come down from their peak and home price growth has started to moderate, affordability remains a hurdle for many would-be buyers.

Where Does the Market Stand Today?

Mortgage rates have been on a slow decline, but with 30-year fixed rates still hovering around 6.75%, buyer activity has yet to rebound in a meaningful way. While lower rates may bring some buyers back to the table, the combination of high home prices and limited inventory means the spring market may remain measured rather than booming this year. Inventory levels are improving slightly as more sellers adjust to the new market reality, but supply remains tight compared to historical norms. This dynamic is keeping home prices elevated in many markets, making affordability a continued challenge—especially for first-time buyers.

Opportunities in a Changing Market

Despite the headwinds, brokers and correspondents still have opportunities to succeed in this evolving landscape. With U.S. homeowners holding over $29 trillion in home equity, many are looking for ways to access that capital without refinancing out of their low-rate first mortgages. As market trends evolve, Arc Home remains ahead of the curve by offering an extensive lineup of Non-QM loans and a digital HELOC, giving you the tools to grow your business.

Home Equity Lines of Credit (HELOCs) – With mortgage rates still well above the lows of recent years, homeowners are turning to HELOCs to access their equity without giving up their existing low-rate mortgage. Borrowers are using these funds for home improvements, debt consolidation, and investment opportunities. Check out HomeEQ to learn more.
Bank Statement Loans – Self-employed borrowers who don’t fit traditional income documentation requirements are leveraging bank statement loans to qualify based on cash flow rather than tax returns.
DSCR Loans for Investors – Real estate investors are turning to DSCR (Debt Service Coverage Ratio) loans, which allow them to qualify based on rental income rather than personal income, making it easier to scale their portfolios.

Looking Ahead

This spring may not bring the kind of housing boom seen in previous years, but smart brokers and lenders will find ways to adjust and capture opportunities. Buyers are still in the market, and creative financing solutions will be key in helping them move forward. At Arc Home, we remain committed to providing the loan products, education, and support you need to navigate today’s market.

Brian Devlin
CEO, Arc Home

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