Rates are back above 7%. Freddie Mac’s weekly survey put the 30-year fixed at 7.28% on October 1, up from 6.34% a year earlier. If you recruit loan officers, that matters more than the headlines suggest. Rates change who is open to a move, what they want to hear, and what a good hire even looks like.
Here is how to adjust your approach.
Because it changes what loan officers worry about. When rates are low, volume comes easy and everyone is busy. When rates are high, volume is scarce and everyone is thinking about security. Same candidates, very different conversations.
The last cycle showed how big the swing can get. Freddie Mac recorded a record low of 2.65% in January 2021. By 2025, the count of active state-licensed loan officers had dropped 34%, from nearly 125,000 in 2021 to about 82,500. High rates make loan officers cautious. Low rates make them busy. Both make them hard to recruit, for different reasons.
Fewer loan officers are looking, and the ones who are want proof before they move.
Lead with stability. Candidates want to know the company will still be standing, and still supporting them, two years from now. Be ready to show production, product mix, and licensing footprint. Vague pitches get ignored.
Recruit proven producers, not just available ones. A slow market shows who can really originate. Filter on recent purchase volume and consistency, not title or years in the business.
Make moving feel safe. Loan officers worry about their employer finding out and about what happens to their book. Offer a private first conversation and straight answers on portability.
Now the problem flips. Everyone is slammed, and your best targets are not returning calls.
Move fast. A busy loan officer who finally raises a hand will not wait three weeks for a second interview. Tighten your process before the market does it for you.
Separate skill from tide. When refis flood in, almost everyone’s numbers look good. Look at purchase share, and at how production held up in slower months, before you trust a hot quarter.
Hire for capacity, not just volume. Strong processing and underwriting support is a real selling point when pipelines are full. It also keeps you from overhiring into a boom.
Keep building the pipeline. Modex data shows loan officers tend to move around the two year mark, so tenure tells you who is likely to be open before they know it themselves. Build those relationships when the market is quiet, and your call gets returned when it is busy.
That is where county-level data helps. Modex tracks mortgage production across 2,370 counties, covering 95% of U.S. residential home loans, and refreshes workforce data monthly. You can see who is producing, who is arriving, who is leaving, and which companies are losing people.
Rates will move again. Recruiters who adjust their pitch to the market, and keep their pipeline warm in every market, will have the best loan officers on speed dial when it does.
Get key mortgage, real estate, and consumer insights on every loan officer, branch, and company nationwide. Try a free demo to see what Modex can do for your business.
Excelling as a loan officer in the current market requires embracing change, redefining benchmarks, and continuously adapting. By recognizing these signs of achievement, you can confidently navigate the evolving market and maintain a competitive edge.
Let’s rewind time for a minute. Picture this: It’s 2015 and you’re sitting in your office, evaluating your next potential hire. You’ve just started building a relationship with a loan officer you think would be great for your team...
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