November 26, 2025


Rates Near 3 Year Lows Again! New Loan Limits!

⚡TL;DR — Quick Takeaways:


Rates: Mortgage rates improved again, now sitting near the lowest levels since 2022, and purchase applications rose.


Headlines vs Reality: Newsweek’s “50% crash” headline is clickbait. Inventory is tight, equity is strong, and forced selling is not happening.


Loan Limits: FHFA increased 2026 conforming loan limits to $832,750, expanding buyer access to conventional financing. Links below 👇


Fed Outlook: The probability of a December rate cut is 84.9%, pending upcoming jobs and inflation data.


Housing Data: Pending home sales climbed 1.9% and sellers are making deeper price cuts to meet buyers. Case-Shiller data shows home prices still rising year over year, signaling continued stability.

🗓️ Click here to view the full economic calendar 

Happy Thanksgiving week!


Over the past week, mortgage rates improved from roughly 6.38% to 6.22% nationally (Mortgage News Daily). That is welcome news for buyers who have been waiting on the sidelines. At the same time, many clients have been asking questions after seeing the latest doom-and-gloom headlines about prices falling and rising foreclosures.


Specifically, a recent Newsweek article gained traction this week with a staggering prediction: a 50% drop in home values within the next 12 months.


It is a scary number for anyone who does not follow the data. It also makes for great clickbait.


The headline is alarming, but once you look more closely at the article, the argument falls apart. There is no meaningful data to support a crash of that magnitude.


The bottom line


Could surprises happen? Every market has uncertainty. But there is no credible evidence pointing to a wave of forced selling or a structural collapse. Most homeowners have very low mortgage rates, strong equity positions, and no financial pressure to sell. As you can see from the Visual Capitalist infographic below that the average rate in California is 4.56%. This is why we are VERY UNLIKELY to see a Real Estate crash soon. 👇


The housing market is not crashing. It is recalibrating. That is what healthy markets are supposed to do.


Feel free to share this insight with clients who are concerned about the headlines. The fundamentals tell a very different and much more reassuring story.

📉 Mortgage Rates: New Lows + December Cut Momentum


• Mortgage Bankers Association reports purchase apps up 8% last week.

• Current probability of a December 10 rate cut: 84.9%.

• What could shift this probability:

– Dec 5 Jobs Report (unemployment, job growth, wages)

– Dec 4 PCE Inflation (Fed’s preferred gauge)

– Weekly Jobless Claims (labor stress signals)

– ADP Jobs and ISM Data (business activity and hiring trends)

🗺️ FHFA Raises 2026 Conforming Loan Limits


New Limits


  • Baseline: $832,750
  • High-cost: $1,249,125
  • Statutory high-cost: $1,873,675
  • Buyers previously in jumbo range can now qualify conventional.
  • Great time to market “new loan limits” to pre-approved borrowers.
  • Find out County specific limits for your area

Underwater Mortgages Slightly Higher (Still Historically Low)


  • Up from 1.0% to 1.6% of mortgages.
  • Concentrated in FHA, VA & recent vintages (2023–2025).
  • Historically extremely low — 2009 was 23%.


Quote to Ponder


"Knowledge is power. Information is liberating."


— Kofi Annan

Featured Financing Solution

CalHFA Downpayment Assistance Loans



✅ Allows for homebuyers to put 0% for a down payment.

✅ FHA, USDA, VA and Conventional loans.

✅ Lower rate options for low to moderate-income borrowers.

✅ Temporary Buy Downs are allowed.

Important Reports

Recent Real Estate and Economic News

Lowest Mortgage Rates Since 10/28 And Very Close to 3-Year Lows

Mortgage rates moved nicely lower on Tuesday with the average lender very close to the 2025 lows seen in late October. These levels are effectively right in line with the lowest since late 2022. If...

Mortgage applications hit strongest level since 2023 despite rate climbs

Purchase applications rise to strongest pace for more than two years, even as rates hit one-month highs

Fannie Mae cuts 2026 home sales forecast

Revised outlook signals cooling buyer enthusiasm as mortgage rates stabilize above 6%

Links Worth Saving

📈 Track National Mortgage Rates Real Time

💹 CPI Inflation Calculator

🧮 Mortgage Calculator

📜 Seller Concession Cheat Sheet

🏦 FHA Loan Limits for 2025

🏠 Conventional Loan Limits for 2025

🔍Corelogic Intelligence Insights


Joe Jacobs

Mortgage Broker/Owner

1101 College Ave, Ste 215

Santa Rosa, CA 95404

(707) 696 6937

joe@intentionfinancial.net

NMLS 453314


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