How crypto, cooling prices, and builder perks could create more business for brokers

Home buyers may soon have a new way to purchase homes: cryptocurrency. Previously, crypto had to be converted to dollars first.

The GENIUS Act, signed July 18, gives banks the green light to issue regulated stablecoins. Intended to make home buying more accessible, this directive requires Fannie Mae and Freddie Mac to prepare for counting cryptocurrency as an asset for single-family home mortgage applications.

President Trump called this first real U.S. crypto framework a “milestone like the birth of the internet.” The move could boost trust in digital assets and even ripple into mortgages and lending. Read more in “Caffeinated Trends” below.

U.S. home prices edged down 0.1% month-over-month, marking the third straight monthly dip. On a year-over-year basis, prices are still up 3.4%, but that’s the slowest pace since June 2023.

Why it matters: This cooldown signals a more balanced market, with sellers losing some pricing power, and buyers getting some breathing room. Thirty of the 50 largest metros saw declines, led by D.C., Austin, and San Diego. That subtle shift is welcome news for rate-wary buyers locked out earlier this year.

Builder confidence in July is still down, with the National Association of Home Builders (NAHB) index at 33, far below the neutral 50.

To move homes, 38% of builders are cutting prices – about 5% on average. Even more, 62% are dangling incentives like mortgage rate buydowns, free upgrades, and closing cost help.

High mortgage rates keep many buyers on the sidelines, but the silver lining is that it’s a buyer’s market for perks. If you’re ready to deal, builders are ready to bargain.

Crypto Week recently concluded on Capitol Hill, with three key pieces of legislation taking center stage from July 14 – July 18.

The legislation includes:

·       The CLARITY Act: Establishes a comprehensive regulatory framework for digital assets, clearly defining the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in overseeing these assets.

·       Anti-CBDC Surveillance State Act: Aims to prevent the Federal Reserve from issuing Central Bank Digital Currency (CBDC) directly to individuals, with the goal of limiting government surveillance.

·       The GENIUS Act: Provides a clear regulatory framework for the issuance and use of stablecoins (a type of cryptocurrency tied to the value of something stable, like the U.S. dollar).

Each bill is unique and must pass through its own legislative process. While they are on different steps in their journeys, each took a significant step forward. Most notably, the GENIUS Act was signed into law on Friday, July 18.

Historically, the relationship between the crypto industry and regulators has been strained. However, a recent shift in tone and increased willingness to collaborate has improved the dynamic.

Recent developments have created a wave of demand for cryptocurrencies. Bitcoin recently hit new all-time highs, surpassing $120,000, and the total crypto market cap has rapidly approached $4 trillion.

As adoption rises, many are asking: What’s next for crypto?

One emerging topic is how cryptocurrency should be treated in mortgage transactions. William Pulte, the director of the Federal Housing Finance Agency (FHFA), the regulator that oversees Fannie Mae and Freddie Mac, recently told the agencies to “prepare their businesses to count cryptocurrency as an asset for mortgage.”

Other countries are exploring similar initiatives. In Australia, Bitcoin-backed home loans were introduced after a federal court ruling. This allows borrowers to use Bitcoin to secure up to 50% of a property’s value through a crypto collateralized loan.

Cryptocurrencies are gaining traction, and with the support from the current administration, this trend shows no signs of slowing down. It may only be a matter of time before crypto becomes a mainstream fixture across major industries, including the housing market.

Purchase season is here. Stay prepared by engaging with industry leaders and discovering what’s next. We’ll be at these top events – let’s connect.

·       July 30 – August 1: Inman Connect, San Diego, CA

·       August 7: California Mortgage Expo, San Diego, CA

·       August 14 – 17: Originator Connect, Las Vegas, NV