Bernice Ross writes that the time to jump over the January slump is now, thanks to three recent shifts in the mortgage market that may yield new prospects from the data you already have.
When the real estate market pivots, it creates a massive opportunity for savvy agents and 1-4-unit investors to capitalize on that shift and capture more business.
Three major factors are at play in creating this opportunity at this moment:
How can you shape these shifts to your advantage? By diving into your CRM, conducting careful research and acting now to kick your spring prospecting into overdrive.
The market almost all agents and brokers are overlooking
You may be curious about why I’m strongly recommending that you consider adding the 1- to 4-unit mom-and-pop investor market as a major niche for your business in 2026.
The reason is simple: According to NAR, sales volume for 2023-2025 has been stuck between 4.1 and 4.5 million (historically, a typical year is 5 million sales). In 2024, there were approximately 1 million transactions in the 1- to 4-unit market, with 93 percent of them to mom-and-pop investors, most of which were off MLS, and 2025 appears to be on track with similar results.
On Jan. 7, President Trump said his administration is moving to ban Wall Street firms from buying up single-family homes in a bid to reduce home prices, a potential blow for private-equity landlords that also pressured homebuilder stocks. This means both traditional buyers and mom-and-pop investors should see more inventory on the market in 2026.
If you choose to add this niche to your business in 2026, you will have virtually no competition as most of the industry continues to struggle with only MLS and portal-driven business.
Prospecting opportunity
Check your past client list and your sphere to see if any of them own a second home, an Airbnb or another 1- to 4-unit rental. If so, they may be prime candidates to list their current residence or one of their other 1- to 4-unit properties and purchase a new investment.
Search specifically for those who have owned their property for over 15 years because they are often excellent candidates to sell or exchange for a new property where they can restart their depreciation schedule.
The GSEs’ minimum credit score of 620 has been eliminated
In November 2025, both GSEs dropped their minimum credit score requirement of 620. Instead, they will be looking at a much broader range of factors, such as cash reserves and payment history for rent and utilities.
This can be a boon to young professionals just getting started with short credit histories, to self-employed individuals and to those recovering from economic setbacks.
It’s also smart to advise your clients to work with a mortgage broker who can shop multiple lenders, rather than relying on a single lender. Some lenders will embrace the new rules, creating approvals for those who haven’t been able to qualify in the past. Others will be more conservative and impose additional requirements to minimize any perceived risk.
Prospecting opportunity
As an agent, there’s a whole new group of potential buyers who would not have qualified before because their credit score was under 620. To locate these potential buyers, prospect high-end apartment rentals as well as rentals for professionals such as firefighters, military, nurses, teachers, etc., where they may also be able to obtain down payment assistance.
Trump’s mortgage bond play and the decline of 3 percent mortgages
Trump’s directive for Fannie and Freddie to buy $200 billion in mortgage bonds aims to make homes more affordable for consumers by cutting rates and payments. In fact, a review of the Bankrate.com mortgage amortization calculator showed that Alliant, RealGenius, Sage Home Loan Corporation and Tomo Mortgage all had rates of 5.5 percent or less, with APRs ranging from 5.53 percent (Alliant) to 5.72 percent (Sage Home Loans).
Couple this with the fact that a higher percentage of homeowners now have 6 percent instead of 3 percent mortgages, and this translates into more borrowers being able to upgrade or right-size into a property more suitable for their current lifestyle situation. Also, with the boomers attempting to age in place, an increasing number are facing financial, health and mobility issues that are forcing them out of the family homes they owned for 20 years or more.
Prospecting opportunity
Go through your past clients and sphere list and identify who has experienced major life changes — marriage, new kids, job change, illness, divorce, death, etc. Use one of the online amortization calculators to compare their current rate to the best rate your mortgage broker can find for their given situation.
Moreover, if they have owned their property for over 10 years, they should have more equity, allowing them to make a bigger down payment and have smaller monthly payments.
Are you ready to capitalize on this golden opportunity?
You’re currently within a very narrow window before the spring selling season, which looks to be the best since interest rates last increased. Focus on getting as many listings as possible, especially by digging into your sphere and past client list.
Also, use title company lists to identify baby boomers who have owned their homes for more than 15 years and will be both sellers and buyers. The time to seize this opportunity is now.
Bernice Ross is president and CEO of BrokerageUP and RealEstateCoach.com, the founder of Profit.RealEstate and a national speaker, author and trainer with over 1,500 published articles.