Rates Improved, New Appraisal Process…… Still Buyers’ Market!

Mortgage rates are holding just above 7%, and the Fed is leaning toward raising, not cutting. The average 30-year fixed purchase rate was 7.10% as of October 30, down two basis points from the week before, according to Zillow data. The 15-year fixed was 6.45%, and 30-year VA loans averaged 6.71%. On October 28, the Federal Reserve held its benchmark rate at 3.75%–4.00%, but two members dissented in favor of a hike, and the statement said inflation “remains elevated.” Futures markets put the odds of a quarter-point increase at the December 9 meeting at roughly 85%. Forecasters don’t expect much relief: the MBA projects a 7.3% average for the fourth quarter and 7.1%–7.2% for 2027, while Fannie Mae projects 7.4% and 7.5%.

NAR’s Pending Home Sales Index fell 7.3% in September and is down 11.3% from a year ago. The West took the biggest hit, down 15% year over year, followed by the South, down 12%. NAR Chief Economist Lawrence Yun blamed rapidly rising mortgage rates. He suggested rates “could be topping out” but called the inflation outlook highly uncertain, and he noted that many buyers and sellers are waiting for better rates.

More Inventory!  New listings are coming on the market and staying on the market longer. Sellers are realigning their thought process, lowering prices, and offering seller concessions to help make a sale. Bringing down the monthly payment is where the savings are, through seller-paid rate buydowns, down payment assistance, and FHA and VA programs.
The new appraisal standard starts today. As of November 2, UAD 3.6 and the redesigned Uniform Residential Appraisal Report are mandatory for loans delivered to Fannie Mae and Freddie Mac. The changes affect how appraisal data is collected and reported, not how value is determined. Agents should still expect some adjustment time with appraisers in the first few weeks, so it’s worth building a little cushion into contract appraisal deadlines.

The new appraisal standard starts today. As of November 2, UAD 3.6 and the redesigned Uniform Residential Appraisal Report are mandatory for loans delivered to Fannie Mae and Freddie Mac. The changes affect how appraisal data is collected and reported, not how value is determined. Agents should still expect some adjustment time with appraisers in the first few weeks, so it’s worth building a little cushion into contract appraisal deadlines.

FEATURED LOAN PROGRAM

FDM ZERO: Homeownership With Nothing Down
FDM ZERO is Fidelity Direct Mortgage’s 100% financing program, built on an FHA loan, so qualified buyers can buy a home without saving for a down payment. The program combines an FHA first mortgage for 96.5% of the purchase price with a second mortgage for the remaining 3.5%, which covers the FHA minimum down payment. The second mortgage carries a 0% interest rate and requires no monthly payment over its 30-year term. After the borrower makes 60 on-time payments on the FHA first mortgage, the second mortgage is completely forgiven.
FDM ZERO is open to far more buyers than most down payment assistance programs. There are no income limits, and buyers don’t have to be first-time homebuyers. Move-up buyers, buyers relocating, and buyers coming back to the market after renting are all eligible. Credit score and debt-to-income guidelines are flexible, there is no asset test, and loan amounts go up to the FHA loan limit for the county where the home is located.
For Realtors, FDM ZERO opens the door to buyers who have the income to afford a monthly payment but haven’t been able to save a down payment. That’s the biggest obstacle for today’s buyers, especially with prices still rising. With the down payment covered, a buyer can make a strong offer now instead of spending years saving while prices keep going up. Contact Fidelity Direct Mortgage to see whether your buyers qualify for FDM ZERO.