Greetings! here is the latest on mortgage rates and values this month. | | |
Mortgage rates are the highest they have been since January of last year, coming in just under 7%. The Fed increased the Fed Funds rate by 1/4 point, which will hopefully give some relief to mortgage rates.
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My colleague, Mike Grenn, Senior Commercial Loan Originator at Counsel Mortgage, noted in his post this past week that once the Fed starts a rate move, up or down, subsequent moves have been the norm over the next year or two - with the single exception being in 1997, as you can see in the chart. There is discussion of another rate increase this year. Will this be enough to stall inflation and bring down mortgage rates? We'll be watching.
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ATTENTION REALTORS
I'll be teaching the class Navigating Mortgage and Title Insurance in Today's Market with David Itzkowitz, Esq. on September 30th, from 9 am to 12 pm at the First American Title Training Room, 9000 E Pima Center Parkway, Scottsdale, AZ. This is a free class and qualifes for 3 hours of real estate legal issues. You can register at this link: https://idsre.com/product/navigating-mortgage-and-title-insurance-in-todays-market-2026/ See you there!
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CAN I GET A MORTGAGE?
REVERSE SECOND MORTGAGE
You have a low rate first mortgage, have a lot of equity you would like to tap into, but don't want a line of credit because you don't want to make another monthly payment. If you are 55 years old or older, you may want to consider a reverse second mortgage. Before explaining what is a reverse second mortgage, let me explain what is a reverse mortgage. A reverse mortgage is a mortgage secured by your home, similar to a 30-year fixed mortgage. However, instead of making monthly payments out-of-pocket, the home makes the payments, i.e. the principal balance of the loan increases each month. You retain title to the home and can stay in the home for the rest of your life, even if the mortgage balance exceeds the value of your home.
A reverse second mortgage, is a reverse mortgage in the second position, i.e. it is in addition to your mortgage. You keep making payments on your first mortgage. But, instead of getting a line of credit where you would make monthly payments, a reverse second mortgage allows you to borrow against the equity in the home without making out-of-pocket payments on the second mortgage. The principal balance of the second mortgage increases monthly. For example, if you are on a fixed income and would like to access your equity, you may consider a reverse second mortgage to access the equity in your home without making out-of-pocket payments. If you'd like to know more about a reverse second mortgage, give us a call.
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PODCAST
Our next podcast is on Thursday, September 24th at 1 pm AZ time. We will provide a market update and go over what people are doing with the equity in their homes. We are seeing cash out refinances, lines of credit, and reverse second mortgages. You can catch it live on the Counsel Mortgage YouTube channel, or watch it later on Spotify or YouTube. Here is the link to YouTube: https://www.youtube.com/@mortgagecounselor
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According to the National Association of Realtors, the median sales price of existing single-family homes increased 1.6% from last year, coming in at $429,100 for August 2026. NAR also reported that prices decreased 1.2% from the prior month. Is this due to rising mortgage rates? The chart at the right suggests it may be seasonal. The chart shows median existing-home sales prices over the last 3 1/2+ years. As you can see, there appears to be a pattern, prices increase until June, and then retreat for the balance of the year. So, when you hear later this year that sales prices are decreasing month to month, it may not be due to increasing mortgage rates, rather it may be due to the seasonal pattern of buying and selling homes. Remember, real estate is inherently local and these national numbers may not reflect the market in your neighborhood.
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SUBSCRIBE AND FOLLOW
Subscribe to our YouTube channel (click here: https://www.youtube.com/@mortgagecounselor) where you can check out our videos and podcasts on current topics in the mortgage market. Follow us on Facebook, Instagram, X, LinkedIn, TikTok, Substack, Active Rain, Threads, Truth Social, and Blue Sky. Also, all posts can be found on our Blog on our website, click on Blog Categories for a glossary of the mortgage information accumulated over the years where you can educate yourself on the mortgage market.
If you are considering purchasing or refinancing, either residential or commercial properties, give us a call. This is what we do every day and can help find the right loan for you.
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