Mortgage Broker: everything we know so far

Beyond California, payments have skyrocketed in two markets brokers won’t see coming. Mortgage Broker has emerged this Friday as one of the stories drawing attention in United States.

Key facts

• Beyond California, payments have skyrocketed in two markets brokers won’t see coming.
• Some of those increases were significant, and the two areas with the largest increases will likely surprise mortgage brokers.
• Despite a decline in the overall average mortgage payment in a new LendingTree report, 26 of the 100 largest metros saw payments increase.
• Akron’s average mortgage payments, which represent principal and interest only, rose 10.7% over last year, while Toledo increased 9.7%.
• Mortgage rates bounced back up this week to 6.3% according to Freddie Mac, although some sources reported rates as high as 6.5% following yesterday’s Fed meeting.

What we know

Going deeper, some of those increases were significant, and the two areas with the largest increases will likely surprise mortgage brokers.

On the substance, despite a decline in the overall average mortgage payment in a new LendingTree report, 26 of the 100 largest metros saw payments increase.

Beyond the headlines, Akron’s average mortgage payments, which represent principal and interest only, rose 10.7% over last year, while Toledo increased 9.7%.

More precisely, Mortgage rates bounced back up this week to 6.3% according to Freddie Mac, although some sources reported rates as high as 6.5% following yesterday’s Fed meeting.

It is worth noting that as big lenders swallow up customers and competition, local relationships and smarter outreach will separate winning brokers from the rest.

By the numbers

“Estimates based on the consumer price index and other data indicate that total PCE prices rose 3.5% over the twelve months ending in March, boosted by the significant rise in global oil prices that has resulted from the conflict in the Middle East.”

“We see 20% of younger borrowers finding their ultimate lender through artificial intelligence,” Gehrke said. “That number came out of nowhere.

Going deeper, Prices in Great Lakes states are approaching what has been the norm in places like California, with $5 per gallon gasoline showing up in states like Ohio and Michigan.

On the substance, they were followed by Augusta, Georgia (8.9%) and Charleston, South Carolina (6.7%).

What they're saying

“There are still plenty of places where costs are rising,” Schulz told Mortgage Professional America. “It is interesting to see, when you look at the list of places with the biggest increases, and it’s places like Akron and Toledo, Ohio.

“I think it is something you definitely have to keep an eye on,” Gehrke told Mortgage Professional America. “On the origination side, I think it’s a competition for leads.

“Inflation has moved up and is elevated in part reflecting the recent increase in global energy prices,” Powell said. “Developments in the Middle East are contributing to a high level of uncertainty about the economic outlook, and we will remain attentive to risks of both sides of our dual mandate.

The wider context

On a related note, Gehrke offered some insights that could help smaller brokers be able to connect with customers before larger mortgage companies can scoop them up.

Going deeper, one area many mortgage executives are telling their brokers to make sure they have covered is in AI searches.

On the substance, many borrowers are now looking for their next mortgage broker through chatbots like ChatGPT.

Beyond the headlines, Affordability challenges have been a much-discussed topic, not just in the mortgage industry but across the financial landscape.

More precisely, Matt Schulz (pictured top), chief consumer finance analyst at LendingTree, said even though the Midwest has largely been home to affordable housing, decreasing inventory and rising mortgage rates are causing affordability challenges.

The bottom line

• Some of those increases were significant, and the two areas with the largest increases will likely surprise mortgage brokers.
• Despite a decline in the overall average mortgage payment in a new LendingTree report, 26 of the 100 largest metros saw payments increase.
• As big lenders swallow up customers and competition, local relationships and smarter outreach will separate winning brokers from the rest.
• Searches spiking right now: Real Brokerage To Acquire RE/MAX Holdings In $880M Deal, Judge Grants Mortgage Broker Stock Sale Notice, AD Mortgage Releases 2026 Technology in Mortgage Broker Survey, Former Rocket Mortgage execs partner with ex-rival Ishbia, UWM in new brokerage business.