The start of a new year is always a time for promises and resolutions, and this year is no different. The last few weeks of ads have bombarded people with offers to buy workout equipment or join a gym. Despite the annual wave of motivation, GymDesk.com reports that up to 50% of new gym members drop out within a year. It’s a predictable cycle that starts over every January.
Having a gym membership alone won’t get anyone into shape. That $100-a-month automatic withdrawal doesn’t burn calories in and of itself — getting in shape requires putting in the work. The same principle applies to setting and achieving business goals, especially for those in the mortgage business.
Losing motivation
Last year began with high hopes. Mortgage rates seemed to be on a downward trend, falling over a percentage point from November 2023 to mid-January 2024. Rates fell on the anticipation that the Federal Open Market Committee (FOMC) would lower the Federal Funds rate six times over the year.
“The up-and-down journey of mortgage rates in 2024 was like getting in the car to head to Pilates and ending up at Baskin-Robbins soothing sorrow instead.”
By the end of January, Federal Reserve Chair Jerome Powell set the record straight: inflation was still a pressing issue, and rate cuts weren’t on the horizon. Mortgage rates climbed back to over 7% — and by spring and summer hopes for an immediate refinance boom were shattered.
The up-and-down journey of mortgage rates in 2024 was like getting in the car to head to Pilates and ending up at Baskin-Robbins soothing sorrow instead. As optimism dimmed, rates stayed high, and many in the industry found themselves losing motivation.
Convenient excuses
Looking ahead to 2025, it may be best to let go of what the FOMC, bond market, and mortgage rates will do. Instead, focus on the factors within your control. Renowned Austrian psychiatrist and Holocaust survivor Viktor Frankl is often cited for a quote that’s just as relevant for business: “Between stimulus and response there is a space. In that space is our power to choose a response. In our response lies our growth and our freedom.”
Looking back over the last 24 months, mortgage originators were faced with rates hitting 5%, followed by 6%, then 7% and finally nearing 8%. On top of that, originators followed closely the market reactions of the Fed announcements as well as the results of the 2024 election.
Were there positive actions to move forward, or excuses to checkout? How one responds in those pivotal moments matters more than the circumstances themselves. Following Frankl’s advice, success in 2025 will depend on “controlling the controllables” — focusing on actions within your reach.
Regaining control
For mortgage loan originators, 2025 is about regaining control. The reality is that “high rates” have become the new normal after two years of this trend. While originators can’t control interest rate fluctuations, they can control their activity and engagement.
Consider this approach: Reach out to potential clients consistently, even if results are slow. Just as hitting the gym doesn’t yield immediate results, consistent outreach will build a stronger business pipeline over time. Use “warm calls” to build confidence. Contact past clients first and check in on their mortgage status. These “warm calls” not only reinforce your expertise but also keep you top-of-mind with clients.
Also, touch base with agents you’ve previously worked with. For example, if on a borrower reconnection, it’s learned that a client’s last child moved out of the home for college; pass that information onto the real estate agent. They too are looking for valid reasons to reach out. Offering insights strengthens your relationship with agents and could lead to future referrals.
If you’re comfortable, take on “cold calls” to prospects who don’t have a previous connection with you. Starting new conversations will expand your network and increase your potential client base. Always have a reason to reach out.
Commit to your efforts and track each call, email and meeting. Find an accountability partner who will help you stay consistent. The goal isn’t just to “keep your membership” at the gym but to make meaningful progress. Give yourself grace only when you’ve truly made the effort. If you don’t make the attempt, there’s nothing to forgive — only missed opportunities.
As 2025 begins, focus on staying active in your business regardless of market conditions. Measure your attempts, set goals and work toward them with consistency. By “controlling the controllables,” there is a better chance of avoiding being one of the 50% who drop out after the initial motivation fades. Instead, be one of the few who keep showing up, staying engaged and moving forward.
