August Interest Rates and Values Update

Greetings! here is what is happening with mortgage rates and values this month.

RATES

Mortgage rates are the highest they have been in a year, inching upwards to 6.67% on a 30-year fixed mortgage and 5.96% on a 15-year fixed mortgage according to Freddie Mac. Rates continue higher due to inflation and the Iran war.

CAN I GET A MORTGAGE? - CONDOS

Condo loans are different from loans on a single family residence. A condo owner has a financial interest in the entire project - structure, roof, parking garage, common areas, insurance, HOA finances, reserves, etc. As part of the approval process, lenders require HOAs to complete a questionnaire that gives them information on these items. The questionnaire asks for information such as:

percentage of units that are owner-occupied
whether the condominium project is 100% complete
number of units that are 60 or more days delinquent on assessments
if any one person owns at least 10% of the units
is any part of the building used for commercial space
are any units in a flood zone
the safety, soundness, and structural integrity of the building
any upcoming special assessments
any pending litigation.

Here is a link to the full questionnaire if you'd like to see all of the questions asked: https://singlefamily.fanniemae.com/media/15656/display

Earlier this year, the Federal Housing Finance Agency (FHFA) provided updates to these rules, most of which were implemented this month. These inlcude:

All associations will be subject to a full review, including questionnaire, budget, and insurance. The limited review process, which is not as extensive, has been eliminated.
Retiring the investment property concentration limit of 50%
Property insurance must provide coverage on a replacement cost basis, with the exception of roofs
Beginning January 4, 2027, minimum reserves for capital expenditures and deferred maintenance in HOA budgets, increases from 10% to 15% of the annual budgeted income assessment.

FHFA states these changes were implemented to support a more stable, accessible, and sustainable housing finance system. By reducing insurance requirements, increasing budget requirements, and requiring full reviews of condo projects, the FHFA is seeking to enhance the viability and marketability of the condominium market. We'll be watching to see how this affects condomininium financing in the upcoming months.

PODCAST

Our next podcast is on Wednesday, August 19th, at 1 pm AZ time. We will provide a market update and will go over the changes to condominium financing, refinancing, AI, and other hot topics. 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

VALUES

According to NAR, national median home sales prices retraced in July to $434,100. The chart at the right shows median sales prices over the last year. It was at $422,600 in August of 2025, thus increasing by $11,500 in the last year, an increase of 2.7%. Remember, home sales prices are inherently local, so check with your real estate agent for values in your neighborhood.

SUBSCRIBE AND FOLLOW

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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.

Contact your real estate agent to check the value of a property. If you are looking for a quick value estimate, here are some free websites where algorithms are used to calculate the values of properties: