Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1074

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1074
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 control states.

Beeline

Beeline’s performance is influenced by
several key factors, including fluctuations in interest rates, economic conditions, housing supply, technological advancements,
and its ability to acquire and retain customers. Interest rate changes have a direct impact on mortgage loan refinancing and overall
mortgage loan volume. In a declining interest rate environment, refinancing activity typically increases, whereas rising interest rates
tend to reduce refinancing and home purchase transactions. However, higher rates can also drive demand for cash-out refinancings and
home equity loans. Following a prolonged period of historically low rates, interest rates began to rise in April 2021 due to inflation,
increases in the federal funds rate, and other monetary policies. This upward trend, which continued through 2023, significantly reduced
mortgage market activity and the pool of borrowers who could benefit from refinancing. Additionally, higher rates discourage homebuyers
from entering the market and lead to a more competitive lending environment, compressing margins and reducing origination volumes.

The broader economic environment plays a crucial
role in mortgage lending activity. Interest rate movements, employment trends, home price appreciation, and consumer confidence all affect
mortgage origination volumes. Typically, home sales peak in the second and third quarters, but in 2022 and 2023, rising interest rates
and ongoing housing supply constraints disrupted these seasonal trends. Despite steady consumer demand for credit, high interest rates
and economic uncertainty may cause borrowers to delay financing decisions, leading to fluctuations in Beeline’s revenue and financial
performance.

Limited housing supply has constrained home purchase
activity. Rising interest rates have further exacerbated this issue by increasing home prices, reducing affordability, and discouraging
transactions. However, Beeline believes that persistent imbalances
between supply and demand will ultimately drive greater home construction, expanding housing inventory and stimulating future mortgage
activity.

Beeline’s
ability to attract and retain customers depends on delivering a seamless and competitive digital mortgage experience. The shift toward
digital transactions, accelerated by the COVID-19 pandemic, has increased consumer willingness to engage in high-value online purchases,
including mortgage applications. Beeline’s platform is designed to provide a convenient and efficient digital experience, positioning
it favorably against traditional mortgage origination methods. With Millennial and Generation Z homeownership rates on the rise, Beeline
anticipates continued growth in demand for digital mortgage solutions.

Technological
innovation remains central to Beeline’s strategy. Beeline’s proprietary technology enhances efficiency, reduces