Compass in negotiations to buy HomeServices

Plus: Spring homebuying season kicks off with a surge in mortgage applications

March 14, 2025

🌅 Happy Friday! Today’s newsletter is 594 words, a 2.5-minute read. Let’s dive in…

Disclaimer: Average mortgage rates as of Mar 13, 2025. Š MND Daily Rate Index.

1. Compass in negotiations to buy HomeServices

Compass is in advanced talks to acquire Warren Buffett’s real-estate brokerage business, according to people familiar with the matter, the latest sign of consolidation among real-estate brokerages during a prolonged period of lackluster home sales.

A deal could come together soon, if talks don’t hit any last-minute snags, the people said. The acquisition price couldn’t be determined. Compass was the biggest brokerage by volume in 2023, while HomeServices was the fourth-biggest.

Berkshire Hathaway’s HomeServices of America had about 820 brokerage offices and 270 franchisees in 2024, and its brand names include Berkshire Hathaway HomeServices and Real Living.

2. Spring homebuying season kicks off with a surge in mortgage applications

Mortgage applications rose sharply last week as interest rates continued their downward trend, marking the sixth consecutive week of declines, according to the MBA’s latest Weekly Mortgage Applications Survey.

The Market Composite Index increased 11.2% on a seasonally adjusted basis for the week ending March 7. On an unadjusted basis, the index climbed 12% from the previous week.

Refinance activity experienced significant growth, with the refinance index climbing 16% week-over-week, now 90% higher than the same period last year. Additionally, the seasonally adjusted purchase index rose 7% from the prior week, while unadjusted purchase applications increased 8%.

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3. More Nuggets

⚖️ NAR to vote on Clear Cooperation Policy as legal threat looms. (inman)

🏡 Take a look inside the world’s largest 3D printed housing development. (CNBC)

🆕 As lenders move to more AI, digitization, borrowers want a real human. (NMP)

🚨 Coach’s Corner

For Loan Officers wanting to blow up their business here is the coolest place you can be! (Youtube)

— Dave Krichmar CEO

4. Srivatsaa steps down as Real president

Sharran Srivatsaa is stepping away from his role as President of The Real Brokerage to assume a seat on the company’s board of directors. The brokerage stated the move will become effective on June 1, 2025, pending corporate approvals.

The move was announced via email to Real’s 26,000-plus agents and comes at a time when the brokerage continues to experience explosive growth in its agent count and revenue.

In the announcement, Real Brokerage CEO Tamir Poleg said the company was "incredibly grateful for [Srivatsaa]'s contributions" and "excited that he will continue to play a critical role" in shaping Real's strategy as a member of the board.

5. Senate confirms Bill Pulte as FHFA director

The Senate voted 56-43 yesterday to confirm Bill Pulte as the nation's top housing regulator, placing him at the center of a debate over the future of Fannie Mae and Freddie Mac.

Pulte, now head of the Federal Housing Finance Agency under the Trump administration, indicated he isn't rushing to privatize the mortgage giants, which have been under federal conservatorship since the 2008 financial crisis.

"Fannie and Freddie shouldn't be in conservatorship forever," Pulte told CNN. "But it's critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but also how it would affect mortgage rates."

☀️ You’re all caught up. See you on Monday!

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