Fed Decision Affects Short-Term Options
Updated Dec 16th, 2025
In a split decision, the Federal Reserve dropped the benchmark lending rate another quarter point last week. This brings the Fed rate down to 3.5% to 3.75%, in the effort to balance the current economic issues of rising unemployment and stubborn inflation. While this does not directly affect long-term mortgage rates, some shorter-term mortgage options may be worth looking into now.
Lower Introductory Rates on ARMs
We can expect to see lower introductory rates on Adjustable-Rate mortgages (ARMs) as a result of the recent Fed decision. Introductory rates on ARMs are typically set for 5, 7, or 10 years.
Homebuyers often consider this type of loan to reduce monthly payments in the initial phase of the loan. This works well for borrowers who do not intend to stay in the home for an extended amount of time, or anticipate a future increase in income. Another option is to refinance before the loan resets, if rates are trending up.
We help borrowers weigh out the pros and cons of this type of loan, and provide specific analytics based on income, credit scores, and other factors.
Pay Off Debt at a Lower Rate
Homeowners with built-up equity may want to consider paying off high-interest credit card debt at a much lower rate with a Home Equity Line of Credit (HELOC) now. For example, in early December, the average HELOC rate was at 7.81%, while the average credit card rate hovered around 19.8% to 20%.
Whether you want to consolidate debt, pay for home improvements, or start a new business, we’re here to help you make educated decisions about managing your mortgage.
FHFA Announces New Conforming Loan Limits
Updated Dec 9, 2025
The Federal Housing Finance Agency (FHFA) released updated conforming loan limit (CLL) values for 2026 recently.
The new limits for loans backed by Fannie Mae or Freddie Mac have risen 3.25%, up to $832,750 for one-unit properties in most counties. The limit in high-cost areas (such as New York City, Los Angeles, Alaska, and Hawaii) is up to $1,249,125. Loan limits have also gone up for two-, three-, and four-unit properties.
Here’s a map that shows the 2026 conforming loan limit ranges for every county in the United States.
This is great news for potential home buyers who may now qualify for a conforming loan, rather than a Jumbo loan. Conforming loans require as little as 3% down, while Jumbo loans require a much higher down payment, a higher credit score, and additional cash reserves.
Likewise, this is good news for homeowners that currently have a Jumbo loan but now may be able to refinance into a conforming loan. If the remaining loan balance is below the new conforming loan limit range, it could be worth looking into. The qualification process is more straightforward with conforming loans and may come with lower interest rates.
Either way, it’s important to look at all your options to determine what the best strategy is for your unique situation. If you’re ready to look at what these new limits mean to you, please give us a call!
50-Year Mortgage Idea Falls Flat
Updated Nov 17, 2025
Bill Pulte, the current Federal Housing Finance Agency director, floated the idea of introducing a 50-year fixed-rate mortgage last week on social media. However, that may not be a viable solution to affordable housing.
This might be a case where the “cons” outweigh the “pros.” While payments spread out over 50 years may offer a slightly lower monthly cost, the amount of interest paid over this extended period would be exorbitant. A homeowner with a 50-year loan would not begin to build equity until the 40th year of making payments. So, this rather defeats the idea of building wealth through equity.
Additionally, the Dodd-Frank Wall Street Reform and Consumer Protection Act does not permit the government to create a 40- or 50-year mortgage. Changes to this bill would have to go through a legislative process and be approved by Congress. That being said, it’s unlikely this idea will take shape any time soon.
My team and I recognize that every homebuyer has a unique financial situation and individual goals. That’s why we take a very personalized approach to every loan we process. We work to help our clients conquer obstacles and achieve their dream of homeownership!
Please feel free to share my contact information with anyone who needs a mortgage professional that takes a truly consultative approach. Our goal is to help people in our community reach their goals!
Non-QM Loans Are Booming This Year
Updated Sep 2, 2025
Non-QM (non-qualified mortgage) loans have become more popular this year, as they offer much more flexibility to various types of borrowers. These programs allow borrowers to qualify using alternative methods, outside the strict lending requirements outlined by the Consumer Financial Protection Bureau (CFPB).
These loans are especially attractive to:
- Freelancers and independent contractors
- Business owners
- Borrowers with high Debt-to-Income (DTI) ratios
- Borrowers with a recent bankruptcy or foreclosure
- High-net-worth borrowers seeking to qualify for a loan based on assets, rather than traditional documentation
- Real estate investors seeking financing on multiple properties
Non-QM loans hit a record high in July, with a strong demand coming from investors and self-employed borrowers leveraging the more tailored underwriting methods offered by this type of program.
Want to know more about Non-QM loans? Give me a call, and we can explore your options to find the best loan program to fit your unique needs!
In the News: Fed Rates / New Hope for Veterans
Updated Aug 4, 2025
The Federal Reserve’s July FOMC meeting resulted in maintaining the benchmark interest rate of 4.25% to 4.5%, despite increasing pressure from the White House. The same rate has been in place since last December, as the Fed continues to monitor the effect of tariffs imposed on other countries by the United States, and its impact on inflation and unemployment.
For the first time in 32 years, two Fed governors dissented in maintaining the current rate, backing a quarter-point reduction instead. Regardless, Jerome Powell did not allude to any rate cuts planned for their next meeting in September.
Many experts agree that prospective home buyers who are on the fence should not wait for interest rates to drop any time soon. If you’re still deliberating a home purchase, this may be a good time to focus on being prepared for down payment and closing costs, improving credit scores, and lowering debt obligations before seeking pre-approval.
Veterans Get Help from Congress
In other news, Veterans gained new hope from Congress to avoid foreclosure. The Veterans Affairs Servicing Purchase (VASP) program ended as of May 1, 2025. This Biden-era initiative was designed to help veteran homeowners avoid losing their homes by purchasing defaulted mortgage loans and modifying them to more manageable terms, often with a 2.5% fixed rate.
The abrupt end of that program left nearly 90,000 veterans at risk of losing their homes due to delinquent payments, with 33,000 already in the foreclosure process according to ICE Mortgage Technology data.
Congress proactively stepped up to pass the VA Home Loan Program Reform Act, with strong bipartisan support in both the House and Senate. The Act was signed into law Wednesday, July 30, 2025.
This new law will prevent thousands of veterans from entering foreclosure by providing a partial claim option, where the VA can cover delinquent payments and work with lenders to restructure the loans.
Conforming Loan Limits Up for 2025
Updated Dec 9, 2024
The Federal Housing Finance Agency (FHFA) has officially announced a 5.21% increase on conforming loan limit values (CLLs) for 2025. This falls directly in line with average home appreciation values nationwide over the last year.
The average limit for one-unit properties nationwide is now up to $806,500. This varies by county, with CLLs going as high as $1,209,750 for high-cost areas such as New York City, Los Angeles, Alaska, and Hawaii. Here’s a map that shows exactly what the CLL is for every county in the United States.
This is great news for potential home buyers who may now qualify for a conforming loan, rather than a Jumbo loan. Conforming loans require as little as 3% down, while Jumbo loans require a much higher down payment (up to 30%, depending on the lender) and additional cash reserves.
Mortgage Rates Drop to 15-Month Low
Updated Aug 12, 2024
Things are looking up for prospective home buyers and homeowners looking to refinance. Freddie Mac’s weekly report released on August 8th cites the 30-year fixed mortgage dropping to 6.47%, down from 6.73% one week prior. Rates have not been this attractive in more than a year.
The Refi Rush is OnApplications for refinance loans surged 16% nationwide last week, according to the Mortgage Banker’s Association’s refinance index. Even a slight drop in rates may make refinancing a practical option. Home owners seeking a lower rate – or wish to move out of an adjustable mortgage that’s ready to reset – may want to consider refinancing now.
Home Buyers Have More Options to Lower Rates
If you’re buying a home, there are a few strategies to get an even lower rate right now. This includes:
- Buying mortgage points
- Consider shorter terms, such as 15-year fixed-rate loan
- Make a larger down payment
The Federal Open Market Committee (FOMC) had its first meeting of the year at the end of January. The decision was made to hold benchmark interest rates steady at 5.25% to 5.50% for the fourth consecutive meeting.
Chairman Jerome Powell acknowledged that good progress has been made, but downplayed any likelihood of cutting rates at the next FOMC meeting in March.
US inflation is currently at 3.35%. The Fed doesn’t expect to lower rates until it has greater confidence that inflation is moving sustainably toward their 2% goal.
Fed holds rates steady
Updated Feb 5, 2024
Freddie Mac reported that mortgage rates dipped after the Fed meeting, bringing the national average on 30-year fixed-rate mortgages down to 6.63% on February 1st.
According to Freddie Mac’s Chief Economist, Sam Khater, the combination of a solid economy, strong demographics, and lower mortgage rates are setting the stage for a more robust housing market.
Khater stated, “Mortgage rates have been stable for nearly two months, but with continued deceleration in inflation we expect rates to decline further.”
