September 2025
The current focus of all markets nationally is the looming Government shutdown. Stock Market, Bond Market and Real Estate Market watchers are all asking. Will they, or won’t they? A shutdown tends to increase uncertainty. That can make buyers more cautious, reduce demand, and slow transaction activity. Also, in financial markets, a “flight to safety” effect could push Treasury yields down, which might lower mortgage rates temporarily; but conversely, concerns about U.S. fiscal stability could push yields higher. Over time, a prolonged shutdown could weaken the broader economy and reduce homebuying power. While the Government shutdown is certainly the market focus, the housing market continues the shift to a buyer’s market. The U.S. housing market continues to show signs of cooling as affordability pressures continue. In response home prices are rising more slowly, and in many major metro areas, sellers are beginning to lower asking prices, offer closing cost assistance and other buyer incentives to attract interest. National Homebuilders have been aggressively pushing for incentives for buyers. One more interesting market development. In the brokerage world, consolidation is underway:
September 23, 2025
Home price growth remains modest but positive. National home prices are rising slowly. In August, the year-over-year increase was around 1.6%. Some markets have seen negative growth. Sales are slowing down and inventory is up. The number of homes sold is down compared to last year, and inventory is increasing. Buyers have more options as sellers are more flexible to facilitate a sale. Sellers are willing to negotiate closing cost assistance, accept lower offers, creating a great buying opportunity. Many buyers remain cautious due to high purchase costs and mortgage rates. Mortgage rates are easing a bit. There are signs of somewhat lower or more stable mortgage rates, which is softening some of the pressure. But rates remain elevated compared to historical norms, still affecting affordability. The FOMC did reduce their Benchmark Rate. 25%, but this does not impact on mortgage rates. Mortgage rates are expected to trend downward based on other factors. Waning inflations and a slowing labor market.
A Mortgage Just Got More Affordable!
Have you been looking for your new home, but have been limited by today’s conforming loan limits? Well, things just got a little easier. FDM is now accepting the 2026 Agency Loan Limits of $819,000.00. Rising conforming loan limits offer several key advantages to homebuyers, lenders, and the housing market as a whole. First, by increasing the maximum size of mortgages that Fannie Mae and Freddie Mac can purchase, many borrowers who previously needed to take out “jumbo” loans (which tend to have higher interest rates and stricter underwriting) may now qualify for conforming loans with more favorable terms, lower rates, and easier credit requirements. This helps improve affordability and access, especially in higher-cost or fast-appreciating housing markets. Second, the changes boosts liquidity: lenders can sell more mortgages into the seondary market, which helps stabilize lending capactiy and may reduce origination costs over time. Third, higher conforming limits help align mortgage financing more closely with actual home values, ameaning fewer buysers are forced to stretch finances or settle for homes smaller or farther from preferred areas. Finally, as the loan limits climb in response to home-price inflation, they can help prevent a "ceiling effect" where loan restrictions artificially constrain buying power in places with rising housing costs.
September 18, 2025
Wednesday, the U.S. Federal Reserve lowered its benchmark interest rate by 25 basis points as expected. This is the first rate cut since December. The federal funds rate now sits at a target range of 4.00%–4.25%. The move reflects growing concerns over a softening labor market: job gains are slowing, unemployment has edged up, and some demographic groups are feeling greater strain.
Fed Chair Jerome Powell characterized the decision as a “risk-management cut,” emphasizing that the Fed would continue to monitor incoming data and adjust policy on a meeting-by-meeting basis. The Fed also signaled expectations of two more rate cuts before year-end, according to its dot-plot projections. Despite that, inflation remains above its 2% target, complicating the balancing act between supporting the economy and curbing inflation. The common misconception is that mortgage rates will improve when the Fed cuts rates. The Fed rate cut will affect short term consumer loans such as Home Equity Lines of Credit, Credit Cards, and Automobile Loans. Mortgage rates have already moved lower and will not move lower in response to the Fed rate cut but will move lower in response to waning inflation and a slowing labor market.
Affordable!!!!
Mortgage rates have been steadily improving over the past months. You are looking to buy your new home, but mortgage rates are not low enough to get you the mortgage payment with which you are comfortable. There is a solution that will provide the lower payment you are looking for. A temporary mortgage buydown is a financing tool that allows borrowers to reduce their interest rate for the first one to three years of the loan, making the initial monthly payments more affordable. The most common structures are 2-1 or 3-2-1 buydowns, where the rate is lowered by a set percentage in the early years before returning to the full note rate for the remainder of the mortgage. The cost of the buydown—often paid by the seller, builder, or lender—is placed in an escrow account and used to subsidize the borrower’s payments during the buydown period. This strategy can help buyers ease into homeownership or offset affordability challenges in a high-rate environment. Additional benefit FDM provides is a Free Refinance. You can enjoy the benefits of the lower payment with a temporary buydown, and when mortgage rates improve, FDM will refinance your mortgage to a lower rate. Even better! All remaining funds in the buydown payment escrow account are applied to your mortgage reducing your mortgage balance.
September 08, 2025
If you are looking to buy your new home, this is the “Best of Times.” Prices continue to soften as buyer demand wanes: A slump in buyers’ interest is prompting sellers, especially in the South and West, to lower listing prices, accept lower than listing price offers, offer incentives, or even pull listings entirely. Currently, active listings have risen for the 21st consecutive month, while home sales are at their lowest level in three decades. Increased inventory creates more opportunities for buyers. Mortgage rates continue to improve, offering relief to buyers concerned about affordability: As of September 8, 2025, mortgage rates have dropped to new lows across multiple loan types, providing some breathing room for buyers and homeowners. While affordability challenges persist, lower rates and rising inventory are shifting market conditions towards a buyer’s market. We expect mortgage rates to continue to improve in the 4Q25 through the 1Q26 offering the opportunity for current homeowners to benefit by refinancing their current mortgage to a lower rate. The current affordability concerns contributing to the sluggish housing market have some officials considering a national housing emergency to address systemic inventory shortfalls.
A Cash Out Solution!
A cash-out refinance can be a powerful financial tool for homeowners looking to unlock the equity in their property. Unlike a traditional refinance, which simply replaces an old loan with a new one (often at a lower interest rate), a cash-out refinance allows the borrower to take out a larger loan and receive the difference in cash. This money can then be used for a wide variety of purposes, giving homeowners both flexibility and financial leverage. One of the biggest benefits is the ability to access funds at an interest rate that is typically much lower than credit cards or personal loans. Homeowners often use the cash to consolidate high-interest debt, which can lower their monthly payments and free up cash flow. It can also be a smart way to fund home improvements or renovations that may increase the property’s long-term value. A cash-out refinance lets you borrow against your own asset at a cost-effective rate. Another advantage is the potential for tax benefits. While the rules vary depending on how the funds are used, interest on mortgage debt may be deductible if the money is applied to “substantial improvements” of the home. In addition, for those looking to invest in real estate, education, or even starting a business, tapping into home equity provides a lump sum of capital without the need for separate financing.
Of course, a cash-out refinance also resets the terms of the mortgage, which can allow borrowers to secure a lower interest rate or extend their repayment period. This can make monthly payments more manageable while still providing access to cash. When used strategically, it’s not just about borrowing money, it’s about using home equity as a tool to strengthen financial stability and achieve bigger goals.
September 02, 2025
Real estate trends are currently defined by a mix of affordability challenges and persistent demand. Mortgage rates remain higher than in recent years, reaching a high 6’s. This has reduced some buyers’ purchasing power, while limited housing inventory continues to support steady or rising home prices in some areas. Sellers with low-rate mortgages are hesitant to move, creating what many call a “lock-in effect,” while buyers are increasingly turning to new construction as one of the available options. Builders are responding with incentives like rate buydowns and closing cost assistance to attract hesitant buyers. At the same time, suburban and secondary markets are drawing more attention as people look for affordability outside of major metro areas. While listing inventory has increased compared to 2024, the market still reflects a balance between constrained supply, creative financing solutions, and shifting buyer preferences, all of which will continue to shape real estate in the months ahead.
Lower Payments Upfront? Try an ARM!
An adjustable-rate mortgage (ARM) can be a smart choice for buyers who want lower initial monthly payments and plan to move, refinance, or pay off their loan before the rate adjusts. Because ARMs typically start with a lower interest rate than fixed-rate mortgages, they can make homeownership more affordable in the short term, freeing up cash for other expenses or investments. This option can also benefit buyers who expect their income to grow over time, as they can take advantage of the lower upfront costs while preparing for potential future adjustments. In a high-interest-rate environment, an ARM offers flexibility and the opportunity to lock in savings during the early years of homeownership.
August 27, 2025
Fannie Mae updated their forecasts indicating mortgage rates are lingering in the higher for longer zone with 2025 ending with mortgage rates in the 6.5% range easing to 6.0% in 2026. Several economists note that weaker jobs growth and waning inflation will open the door for lower rates. The Fed is expected to lower the Benchmark Rate by .25%. While this is welcome news, a Fed Rate Cut does not immediately impact mortgage rates. Credit card rates, car loans, and other consumer debt will see an immediate reduction in rates. Unfortunately, mortgage rates will take a longer time to improve. If rates are not moving lower, why is this a “Buyer’s Window”? Realtor.com describes this as a “cruel summer” Sellers and Builders are all feeling stuck with lower demand and falling prices. Barron’s suggests conditions are shifting in favor of buyers. Slowing price growth, high inventory and lower demand has prompted builders and sellers to be open to negotiation accepting lower than asking price offers and offering seller concessions to entice buyers. If you are looking to buy, the window is open! Do not worry about mortgage rates. If you buy today, the rate is only temporary. Take advantage of willing Sellers and buy today. When rates fall, as expected, you can refinance to a lower rate.
Fast, Affordable and Easy!
FDM’s Easy Home Equity Line is a simple low risk way to access funds hidden in your house. Property values have increased significantly over the past years.
• Are you struggling with Credit Card payments and other consumer debt?
• Do you want to make improvements to your current home?
• Would you like to make other investments including buying an investment property or second home?
You may have hidden funds ready for you!
The FDM Easy Home Equity Line can help you access these funds in a matter of days. This program is available for your primary home, second home or an investment property. If you need funds for any reason, FDM has the solution. The process is simple. Contact your FDM Mortgage Professional to complete a simple online application. The FDM team will complete a quick analysis to determine how much you qualify for. This process will not impact your credit score, and you can have the funds in a little as 8 days. Fast, Affordable and Easy!
August 19, 2025
Inventory and new listings are rising, but the summer market remains sluggish. Sellers are cutting prices, offering closing cost assistance, and providing other buyer incentives, but buyers continue to stay on the sidelines. Active inventory increased 27% giving buyers more options. However, elevated interest rates and affordability concerns restrain buyers. Builders continue to offer incentives that spark demand. Some sellers are delisting hoping to come back in the market when conditions improve for sellers. One thing is evident. The previous “Seller’s Market” running for over 6-years has shifted to a balanced market at the minimum, and in some markets a “Buyer’s Market”. What can sellers expect? More competition, increasing inventory and price sensitivity are giving buyers an advantage. Strategic pricing matters. Listings priced right from the start sell faster. What can buyers expect? More options and a slower market pace offer negotiation opportunities. Mortgage rates remain elevated. Keep an eye on shifts. Mortgage rates are starting to ease.
Endless Summer……Buying a Second Home?
The final days of summer are fast approaching. One way to have an endless summer is by buying a second home. A second home mortgage is a loan taken out to purchase a vacation property or another residence separate from your primary home. Lenders treat these loans differently from mortgages on a main residence, since the risk is higher—borrowers are more likely to prioritize payments on their primary home if financial challenges arise. Because of this added risk, interest rates on second home mortgages are usually slightly higher, and the requirements can be more stringent.
To qualify for a second home mortgage, lenders typically require a strong credit score, a stable income, and a larger down payment—often at least 10–20%. They will also review your debt-to-income ratio (DTI) more closely to ensure you can comfortably afford both mortgage payments, plus taxes, insurance, and maintenance costs for two homes. Some loan programs, like conventional mortgages backed by Fannie Mae and Freddie Mac, allow financing for second homes, but government-backed loans such as FHA, VA, or USDA are generally limited to primary residences.
When considering a second home, it’s important to distinguish it from an investment property. A second home is intended for personal use, such as a vacation home or a family retreat. Lenders may restrict how often you can rent it out, whereas investment properties are purchased specifically to generate rental income. The difference matters because investment property mortgages come with even stricter requirements and higher interest rates.
August 15, 2025
This week’s real estate landscape is one of softening demand and growing supply, with both sellers and buyers adopting a wait-and-see stance. While some markets continue to resist downward pressure, others—like Florida—are adjusting more sharply, creating pockets of opportunity for well-positioned buyers. Nationally, home price growth remains subdued while inventory continues to climb. However, the pace of new listings is slowing, suggesting a more cautious market—marked by misaligned expectations between sellers and buyers. New listings for the week ending August 2 rose by only 1.5% year-over-year, significantly lagging previous gains, as many homeowners opt to stay put rather than compromise on pricing. June saw existing home sales fall to a nine-month low (3.93 million annualized), while supply reached its highest level since May 2020 (4.7 months). Home prices ticked up modestly, but builders are offering incentives to attract hesitant buyers amid high mortgage rates near 7% again. Recent improvements in interest rates may pull buyers, hesitant to enter the market, back into the market.
For those that served!
VA loans are a unique home financing option created to honor and support U.S. military service members, veterans, and eligible surviving spouses. Administered by the Department of Veterans Affairs but issued through private lenders, these loans offer benefits that can be difficult to find in conventional mortgages.
Key Features and Benefits:
Eligibility generally depends on your length and type of military service. Once earned, the benefit can be used multiple times and is not a one-time perk. VA loans can be used to buy a primary residence, build a new home, refinance an existing mortgage, or even make certain home improvements.
If you would like to learn more about VA Loans, or a side-by-side comparison of VA loans vs. FHA and conventional loans so you can see exactly where VA loans stand out, contact an FDM Mortgage Professional Today.
August 6, 2025
Every week the news keeps getting better for buyers. The inventory surge continues. Active listings are up 36% year-over-year, signaling a continued loosening in housing supply across many markets. However, supply still lags behind pre pandemic norms in several regions. Mortgage rates remain elevated in the high 6% to 7% range, slowing buyer demand. The bond market rallied on Friday pushing mortgage rates to the lowest level in 4 months. Investor activity & fundraising bounce. After a pause in investor activity, institutional investors are reentering the market. Carlyle just raised a record $9 billion U.S. real estate fund, focusing on residential, industrial, and self-storage assets while avoiding office and hotel sector. Meanwhile, foreign buyers—particularly from China—are stepping in, attracted by favorable rates and increased supplier availability in luxury and suburban markets shifting buyer preferences? First-time buyers are increasingly turning to smaller, older homes—sometimes under 1,500 sq ft—because new builds remain expensive and limited. These vintage homes offer affordability and charm and are often selling quickly even if located in older neighborhoods and major metropolitan areas. A Renovation loan is the perfect program to help first time buyers in older communities.
Self-Employed? We have a solution!
Self-Employed borrowers have unique challenges. Documenting the actual income needed to qualify for a mortgage is not always readily available. A bank statement loan can be a valuable option for self-employed individuals, freelancers, or small business owners who may not have traditional W-2 income but still have strong cash flow. Instead of relying on tax returns or pay stubs, lenders use 12 to 24 months of personal or business bank statements to assess income, offering more flexibility in qualification. This type of loan allows borrowers to showcase their real earning potential without the deductions and write-offs that often reduce taxable income on paper. Bank statement loans can make homeownership accessible to creditworthy borrowers who might otherwise be overlooked by conventional mortgage standards. If you are a small business owner, FDM is ready to assist you!
July 29, 2025
The Federal Open Market Committee (FOMC) meets this week and will make their rate decision announcement. There has been a lot of news coverage regarding the drama between Fed Chair Powell and President Trump. Although there is a lot of noise regarding a Fed rate cut at this meeting, the market does not expect the Fed to make an interest rate cut. In fact, the Fed Futures Market does not forecast a Fed Rate Cut until September at the earliest. Mortgage rates remain slightly elevated in the 6.75% to 7.0% range. Recent data show a favorable trend towards lower mortgage rates. Conditions for buyers remain favorable as well. Listing inventory surged 24% keeping total inventory over 1 million homes the highest since 2019. Listings are spending more time on the market. The median time on the market is 58 days. Sellers are making concessions including closing cost assistance and price reductions.
FHAffordable!
An FHA mortgage is a great option for first-time homebuyers or anyone with less-than-perfect credit who wants to make homeownership more accessible. With down payments as low as 3.5%, flexible credit requirements, and higher debt-to-income limits, FHA loans offer a more forgiving path to buying a home. FHA loans are often combined with Grant programs and other Down Payment Assistance Programs to lower down payment requirements. FHA loans also include benefits like assumable loan terms and renovation financing options through programs like the FHA 203(k). FHA Loans also makes it easier to refinance when mortgage rates move lower through the Streamline Refinance Program. For many buyers, an FHA loan is a smart, affordable step toward owning a home.
July 23, 2025
The shift to a buyer’s market continues. National inventory exceeded one million homes for the first time since pre-pandemic tilting the balance toward buyers. Over 33% of listed homes are selling below listing price. In certain markets such as Florida price reductions are more aggressive. The outlook is for more price reductions as pending sales have slowed. Builders remain under pressure. New Home Sales are sluggish coming off the weakest Spring selling season since 2019. Builders are offering substantial price reductions and other incentives to entice buyers. Mortgage rates remain stubbornly in the high 6% range, impacting on affordability causing some buyers to rethink their timeframe for homeownership. The good news is mortgage rates started to stabilize, trending lower last week. Market conditions have steadily improved for buyers. Given current conditions the outlook is for the buyer’s market to gain momentum. Most analysts expect mortgage rates to dip later in 2025.
Mortgage Free in Fifteen Years!
A 15-Year mortgage offers several compelling benefits for homeowners seeking long-term financial stability. The most significant advantage is substantial interest savings because the loan is paid off in half the time as a 30-Year mortgage. Borrowers pay far less interest over the life of the loan. Additionally, 15-Year mortgages have lower interest rates further reduce costs. Monthly payments are higher than a 30-Year mortgage, but equity builds much faster, giving homeowners more financial flexibility. For disciplined borrowers who can manage the higher monthly mortgage payments a 15-Year mortgage is a powerful tool for wealth-building and debt free homeownership.
July 14, 2025
The mid-year inventory growth we have experienced over the past months is stabilizing. New listing surged in July, up 29% compared to last year, but now appears to be plateauing. Total active inventory hit over 108 million units, the highest since 2019, but remains below pre-pandemic levels. Listings are staying on the market longer. In June, 39 of the 50 largest metro areas in the United States saw increased days-on-market. More inventory and houses staying on the market longer are forcing sellers to work with buyers. Seller concessions and price reductions continue to grow. One in five sellers (20%) reduced prices. Builders are advertising buyer incentives to move homes. We expect this trend to continue. Mortgage rates remain slightly below 7%, inching up to 6.83% from 6.67% the week prior. If you are looking to buy the market remains slanted slightly in your favor.
Safe and Affordable!
More affordable and safe. Fixed Rate Mortgages have been stubbornly hovering around 7%. This makes buying your new home seem unaffordable. The general thought process in the market is that mortgage rates will move lower in the near future. This is making many prospective buyers wait. The problem is waiting will end up costing you more money. When mortgage rates fall, home prices rise eliminating any savings you thought you would have. There is a program that is safe and affordable that can help you buy today. The 5/1 ARM. The biggest appeal of a 5-year ARM is the lower initial interest rate, often significantly below that of a 30-year fixed mortgage. This can mean lower monthly payments and greater affordability upfront. A 5/1 ARM is a smart fit for buyers who plan to move, sell, or refinance within five years. Why pay for a 30-year fixed rate if you will not stay that long? With lower initial payments, borrowers can free up cash for renovations, investments, or other financial goals during the fixed-rate period. The reduced rate on a 5-year ARM can increase a borrower’s purchasing power, allowing them to qualify for a more expensive home or afford a more competitive offer. If rates drop or stay stable, many borrowers refinance before the adjustment period starts—potentially locking in another low rate or switching to a fixed mortgage. When mortgage rates are high but expected to fall in the future, a 5-year ARM lets borrowers avoid locking into long-term high interest while retaining flexibility. A 5/1 ARM may be just the right product for today.
July 01, 2025
Interest rates improved slightly according to Freddie Mac decreasing from 6.81% to 6.77% last week. The Federal Reserve held rates steady at the June 18th meeting keeping the Fed Funds Rate in the 4.25% to 4.5% range. Although the benchmark rate remained the same, Fed projections shifted. Members now expect two quarter point rate cuts later in 2025, possibly in September and December. Real estate inventory continues to improve as it keeps shifting from the Seller’s market we have seen for the past 6 years to a more balanced market. Buyers are finding sales prices are leveling off and sellers are more willing to negotiate. Seller closing cost assistance, home inspections, Appraisals, and other inducements for the buyer have all returned to the market. The trend is certainly in the buyers favor and appears conditions will continue move to the buyers’ favor. If you were pushed out of the market over the past several years, this is the perfect opportunity to reenter the market.
How to use your mortgage as a financial tool to save you money!
If you are looking to buy your dream home or refinancing your current mortgage to a lower rate, the question most often asked is what happens if rates get better? This one question stops many buyers from taking action which ends up costing them thousands of dollars. What causes most buyers to wait? The name of the product. We see 30-Year Fixed Rate Mortgage, and mentally think we are tied to this decision for 30-years. The reality is that mortgages are a flexible financial tool. The average life of the 30-Year Mortgage is 7-years! If you are looking to refinance your mortgage and are saving money each month, you should refinance today. If you are saving $300.00 per month but you decide to wait until rates get better, if rates take 7 months for mortgage rates to get lower you lost $2,100.00 in savings. The most effective strategy is to refinance now saving money each month. When mortgage rates improve, FDM will refinance you to lower rates for free. Save now and save later! If you are looking to buy, the market is in your favor. When mortgage rates improve, more buyers enter the market. More buyers mean more competition for homes, pushing prices higher. What you save in lower interest rates you lose in the sales price increase. The most effective strategy is to buy now locking the lower sales price. When mortgage rates improve FDM will refinance you to lower rates for free. Learn how to effectively use a mortgage as the flexible financial tool it is. The FDM Free Refinance Program will refinance you loan for free with no lender fees!
June 23, 2025
The market continues to improve for those hoping to find their new home. Buyer conditions continue to improve each month. Mortgage rates inched downward again with the average 30-year fixed rate mortgage falling to 6.81% marking the third consecutive weekly decline. Listing Inventory is up over 28% from last year reaching the highest point since 2019. Homes are staying on the market longer. 20% of all listings have been on the market for over 27 days. The median “days on market” is 51 days. Price growth has stalled with year-over-year listing prices down 0.4%, and 26% of all listings are seeing price cuts. If you are looking, you should move quickly. We have not seen the market this balanced since pre-Covid days. The market can shift again to the seller’s advantage in a flash. Contact your FDM Mortgage Professional today!
The right house at the right rate!
Where you are looking to live may make a difference in your interest rate. The FDM Community Loan Program is designed to spur homeownership in targeted Census Tracts. Increased rates of homeownership creates stronger community ties leading to lower crime rates. Increased rates of homeownership also leads to improved civic engagement, increased investment in the community and support for the local schools. The FDM Community Loan Program offers mortgage interest rates up to a full 1.0% below market rates. There are no income limits or 1st time buyer requirements. The FDM Community Loan Program is based on Census Tract only fostering homeownership in these markets. Before you make an offer for your new home, contact your FDM Mortgage Professional to determine if the property qualifies for the FDM Community Loan Program. A below market rate may be available.
June 18, 2025
The national shift towards a buyers’ market continues. Housing inventory has increased to pre-pandemic levels with over one million homes listed. The share of listings with price reductions increased for the fifth straight month. The median days on the market increased to 38 days. All three point to a firm shift to the benefit of buyers. Looking for a new home? The NAHB/Wells Fargo Builder Index dropped to a 2 ½ -year low of 32 in June. 37% of home builders are reducing their prices, and 62% of builders are offering other incentives like mortgage buydowns. While the market favors buyers today, you must move quickly if you are looking to buy your new home. The market can shift back to the seller’s advantage quickly. Do not miss this opportunity. The market has not been in the buyers favor in over 8 years!
Home to sell?
The market is getting better for buyers, and that perfect home you were wishing for just came on the market. The problem is you need to sell your home before you can buy your new home. This is a catch-22! The market has shifted in favor of buyers, which is great for you as a buyer, but not when you have to sell your home first! FDM has the solution. The FDM Buy Before You Sell program will bridge the sale of your new home, with a guaranteed purchase of your current home. FDM will advance you the equity in your current home so you can buy your new home before you sell your current home. The FDM Buy Before You Sell Program is better than a bridge loan. There are no monthly payments. If you cannot sell your home, the Buy Before You Sell Program has already agreed to buy your home at a negotiated price! If you are looking for your new home in this market, do not let having to sell your current home delay you! The FDM Buy Before You Sell Program lets you take advantage of today’s buyer’s market without having to sell your home first!
June 09, 2025
The U.S. housing market remains in a cooling but resilient phase. Home inventory has surged to multi-year highs—nearly $700 billion worth of listings—giving buyers more options. Buyers remain reluctant to enter the market due to mortgage rates hovering just under 7 percent. Sellers now outnumber buyers by over 30 percent, prompting price stabilization and modest declines. Meanwhile, rent is expected to rise steadily, particularly amid a slowdown in new multifamily construction. Experts predict continued slow price growth—between 2 and 4 percent—alongside potential easing of rates later this year. Buyers who remain on the sidelines are missing the best opportunity we have seen to buy a new home in years. Sales prices are cooling. Rents are increasing. Mortgage rates are forecasted to move lower. The best strategy? Buy today, before your rent increases, taking advantage of lower prices. Then refinance when mortgage rates move lower as expected.
$3,000,000.00? $3,500,000.00? $5,500,000.00?
Buying a home over $5,000,000.00 with VA financing at 100% is now possible for eligible veterans and service members who have full VA loan entitlement! In fact, the team at FDM just closed a 100% financing VA loan used to purchase a $5,500,000.00 new home! Thanks to changes in VA loan rules, there is no longer a cap on loan amounts, meaning qualified buyers can finance the entire purchase price—even for multi-million-dollar properties—without a down payment. This benefit makes luxury homeownership more accessible, especially in high-cost areas, and can result in significant savings compared to conventional jumbo loans, which often require large down payments and private mortgage insurance. As long as the borrower has sufficient income, credit, and entitlement, VA loans can be used to purchase homes well above traditional lending limits. If you are a Veteran and are looking in the luxury home market, please contact your FDM Mortgage VA Loan Expert today to see how your Veteran’s Benefits can help you find that special home. You served to protect us. Let us serve you!
June 02, 2025
Last week was a good week if you are in the market for your new home. Let us start with the housing market. We have shared over the past few weeks the housing market was shifting from the “sellers’ market” that dominated the market for the last few years to a “balanced market.” Sales prices are leveling, and in some markets, we are seeing sales prices drop. Why is this happening? According to Altos Research, the active single-family inventory was up 2.1% in a week over week comparison. Single family inventory is up 32.8% in a year over year comparison to 2024. The housing inventory pickup from seasonal lows is normally 16%. So, 2025 is seeing a larger than normal pickup in inventory. If this trend continues, as expected, housing inventory may reach 2019 inventory levels. The more houses on the market the more leverage buyers have. The fundamental economic Law of Supply and Demand works both ways. More supply than demand buyers win!
The second positive trend is the slow gradual trend to lower mortgage rates continues. While we did see a quick spike up to the highest levels in months prompted by the tariff turmoil, mortgage rates have returned to pre-tariff levels. We expect “bumps” where rates spike up for short periods and then trend back down. The up and down patterns we have experienced will continue through 2025, but the overall trend is to lower rates. This is why the knowledge of your FDM Mortgage Professional matters.
Condos?
Condominiums have become a larger segment of the market. Some buyers find condominiums a more affordable option. Some buyers choose a condominium as a lifestyle choice. The amenities available are attractive, and the maintenance of a condominium is often much easier than a single-family home. The hidden challenge is finding a mortgage for a condominium is not easy. A mortgage for a condominium is broken into two parts.
Part 1: You may qualify for a mortgage for the sales price. Your credit, income and assets all qualify for the mortgage amount you need. Did you meet those criteria? Yes, then great!
Now, Part 2: Even when you qualify for the mortgage, the Condominium Project requires approval. Did you know that, Fannie Mae, Freddie Mac, FHA, and VA all have different rules for Condominium Project Approval? What is the CPM? What is the mandatory Condominium Questionnaire? Did you know the Condominium Budget needs to be approved?
There are other factors that are reviewed: Investor concentration. What percentage of units are owned by investors? Single entity ownership. Does one single entity own more than 10% of the total units? How many owners are delinquent paying their Condominium Fees? The structural integrity of the Condominium Project is reviewed via a mandatory Structural Addendum that the Homeowner’s Association completes. Even when you qualify for a mortgage for a Condominium the mortgage may not be approved. The Condominium Project approval is completely separate.
This is where the experience of your mortgage team matters. The FDM team of Mortgage Professionals are experts in Condominium financing. If you are ready to make an offer on a Condominium, please contact your FDM Mortgage Professional before you make an offer. Let the FDM team help you determine if the Condominium Project can be approved.
May 28, 2025
The trend of hyper-volatility in the Bond Market, Stock Market and Mortgage Rates continue. The global events creating market schizophrenia remain. The Spending Bill in the U.S. Congress, increasing Geopolitical tensions, the Russia/Ukraine conflict, tensions in the Middle East, Inflation data in the U.S. and globally. These ongoing events are driving the hyper-volatility in both markets. The Stock Market and Bond Market have both experienced significant swings, which have certainly been featured in the news. While the news seems bad, the longer-term trend to lower rates, with bumps on the way, remains the forecast. In fact, J.P. Morgan Chase just announced they forecast the Fed will begin cutting rates in the later part of 2025. Even with the recent volatility mortgage rates remain at recent lows and affordability keeps improving.
The other positive trend is that sales prices continue to flatten as more inventory comes on the market. The market is becoming balanced with listing prices falling in some markets, and sellers more willing to negotiate. With mortgage rates improving, more inventory coming to the market and a balanced market pushing sellers to be more flexible it is a perfect opportunity to find your next home.
What if rates get better?
The question often asked is if I buy today, what happens if rates get better? The longer-term forecast is for mortgage rates to improve as we head into the later part of 2025. So, the question regarding what happens if rates improve in the future is certainly appropriate. Unfortunately, many homebuyers who believe rates will improve decide to delay their purchase until rates get better. This is the opposite of the correct approach in this market. Waiting for lower rates will end up costing more money! When mortgage rates improve, and they will, more prospective buyers enter the market. When more buyers enter the market the law of supply and demand comes into play pushing sales prices back up. Yes, the mortgage rate is lower, but you paid more for the property. Your mortgage payment may even be higher than the mortgage payment if you bought at today’s rates.
The best strategy is to buy your home today, and when rates improve take advantage of the FDM Free Refinance to refinance your mortgage to the lower rate. The FDM Free Refinance allows you the opportunity to refinance with zero lender fees. You can buy today when the market Is more favorable to buyers. Then refinance without lender fees when mortgage rates improve, and benefit from the increased values when rates drop. Ask your FDM Mortgage Professional about the FDM Free Refinance Program today.
May 20, 2025
The good news is mortgage rates remained under the 7% threshold for the 17th consecutive week. Mortgage rates have been able to stay below 7%, but it has been a struggle. A lot of external factors are putting pressure on the bond market. Inflation, Tariffs, Ukraine/Russia, Iran, Gaza, the Fiscal Bill working its way through Congress are all creating upward pressure on mortgage rates. Yet, with all this pressure mortgage rates have been able to remain below 7%. According to Freddie Mac the average 30-Year mortgage Rate last week was 6.81%. Close but not over 7%. Will the external pressure continue? Unfortunately, this appears to be the case. The longer-term outlook is for rates to continue a slow move lower, but we are going to have to deal with rate elasticity for the short term. The good news is rising housing inventory is helping to cool sales price pressure, making this a great time to look for your new home!
A 2% Solution!
The recent move to the highest mortgage rates in three weeks has created uncertainty for many buyers. With rates going up can we really afford a new home right now? FDM has a program to make your monthly mortgage payments lower. FDM’s Mortgage Power Program allows you to reduce your mortgage payment rate down a full two percent for one-year saving you money each month. For example, if your mortgage rate is 6.8%, You can lower your first-year mortgage payment rate to 4.8% for a full year. Your mortgage rate is 6.8%, but your first-year mortgage payment is based on a 4.8% payment rate. After the first year your mortgage payment rate remains one percent lower than the note rate. For example, if your mortgage rate is 6.8%, your second-year mortgage payment rate is 5.8% for a full year. This is a fantastic way for you to lower your monthly payment while you ease into homeownership. When mortgage rates improve, FDM will refinance to your mortgage for free. Move quickly to take advantage of today’s lower rates. Contact your FDM Mortgage Professional today and ask about the FDM’s Mortgage Power Program and how you can lower your mortgage payment rate by 2%.
May 13, 2025
As mister Miyagi stated in the 1984 classic The Karate Kid “You must have balance”. It is true when you are fighting the Cobra Kai, and it is true in Real Estate. National active listings are on the rise. Active listings are up 30.6% from April 2024 in a year-to-year comparison. Some markets have reached pre-pandemic inventory levels. This indicates that that buyers have gained some leverage in many part of the country over the past year. Some sellers markets have turned into balanced markets. More balanced markets are turning into buyers markets. It has been a tough time for homebuyers since the start of the pandemic. If you could not find the home you were looking for over the past few years, market balance is returning bringing opportunity with it. Rates are getting better. More listings are on the market…..BALANCE!
Not Quite Right to Just Right
More listings are coming on the market. Some markets are shifting to buyers markets. We have not seen this for the past several years. This is a great time to buy. What if you have found the not quite right home, but in the just right place? FDM has the solution. If you have found the perfect place, but the home is not quite right the FHA limited 203K is the answer. The FHA limited 203K program allows you to purchase your new home with a reduced downpayment, and provides up to $75,000.00 for renovations to help you turn a not quite right to a just right. Need a new kitchen? Need updated bathrooms? New floors? New deck? New appliances? The FHA Limited 203K is the solution. FDM professionals are experts in the FHA 203K Program. Before you say no to the perfect place contact FDM to help make the perfect home!
May 05, 2025
The traditional Spring Real Estate market is in full swing. While the Spring market is heating up, home price growth is cooling. Improved inventory levels are providing more options, and a softer price dynamic for homebuyers shopping this Spring. According to the ICE Home Price Index early April data shows home prices increased by a modest 0.1% in the month on a seasonally adjusted basis, which would be the slowest growth rate since 2023. If recent seasonally adjusted growth rates continue, the annual home price growth rate will cool further in the 2Q25. Single family home prices were only up 2.1% from the same time last year. Condos actually decreased -0.4% marking the first decline since 2012. Nearly half of the major market across the United States are seeing condo prices down from last year with the largest declines in Florida.
The emerging softening in the market is creating an opportunity. Mortgage rates are trending in lower. Home prices are cooling. More inventory provides more choices. This is the best market for prospective buyers in years. If you could not find your new home over the past few years, and thought you could never find the right home, today may be the perfect time to jump back in to the market!
The FHA Clock Is Ticking.
If you are a home buyer looking for a home, and are not a United States citizen, you will need to find your new home and apply for a mortgage prior to May 25, 2025 if you are looking for a FHA Loan. G-4, EAD, TPS, Asylum, ITIN? It does not matter what your visa or immigration status is. FHA’s new Revisions to Residency Requirements in Mortgagee Letter 2025-09 removes the Non-Permanent Resident Aliens section in the FHA guidelines eliminating the eligibility for Non-Permanent Resident Aliens for a FHA Mortgage. Effective for FHA Case Numbers on or after May 25, 2025 only United State citizens and Permanent Resident Aliens (Green Card Holders) are eligible for FHA Loans. If you are a Non-Permanent Resident Alien looking for a home, you need to act quickly. The FDM team are experts in what Visa’s and EAD’s are eligible for FHA financing.
If you are a Non-Permanent Resident Alien and currently have a FHA Loan, contact FDM Immediately. FDM may be able to lower your mortgage rate with a FHA Streamline Refinance. You must complete your FHA Refinance Application prior to May 25, 2025. FDM is ready to assist you. Please contact your FDM Mortgage Professional before it is too late.
Apr 23, 2025
The Trump Administration announced it will resume collection efforts on defaulted student loans for the first time in five years. The change will affect 5.3 million student loan borrowers who went into to default before the COVID Pandemic. Technically, a borrower is considered in default when they fail to make a payment for at least 270-Days. Even more borrowers are delinquent on their payments and may be headed toward default. According to data provided by the Department of Education, 2.9 million borrowers are 61-90 days late on their loan payments. Another 4 million are in "late-stage delinquency," have been reported to the credit bureaus and are quickly approaching default. The collection efforts go into effect May 5, 2025, and can actions such as wage garnishment up to 15% of the borrowers disposable income or recovery of tax refund.
The changes announced can impact your mortgage qualification. Your credit score may be change, and not for the better. How does the Student Loan Payment impact your mortgage qualification? Did you know that Fannie Mae, Freddie Mac, FHA and VA all have different guidelines for Student Loans? Are you in Student Loan Deferment? Do you have an Income Based Repayment Plan (IBR)? What payment is reflected on your credit report? All of these things matter. If you are looking to buy your new home, and have a Student Loan, please contact a FDM Mortgage Professional to determine if the recent Student Loan repayment announcement will impact you.
Apr 21, 2025
Right in time for the Spring Market! Spring is the traditional start of Real Estate Market buying season. The financial market turmoil is hitting just when you starting to look for your new home. Mortgage rates are all over the place. How can I look for a home that I can afford when I do not know what the mortgage rate will be? FDM can help. The FDM Purchase Power Program is a fully underwritten preapproval with a 120-Day Lock and Shop. FDM will lock in your interest rate today so you can shop for your house knowing what your mortgage rate and what your mortgage payment will be! The FDM Purchase Power Program will also give you an advantage when making an offer. The FDM Purchase Power turns your offer into a cash equivalent offer. The only items needed are the title, which is required on a cash deal as well, and the appraisal. You can make an offer with confidence knowing you are approved and your mortgage rate is protected. Ask your FDM Mortgage Professional how to help your client compete with cash offers! Find a home the loan is done!
Apr 21, 2025
Last week saw a relative calming of the market. Mortgage rates and treasury yields improved during the week. This was driven in part by lighter trading volume, which occurs when the markets are closed. The Bond Market closed early on Thursday remaining closed on Friday in observance of Good Friday. Traders will normally take off in advance of the holiday market closures and lighter trading volume ensues. The markets are back to normal trading volumes. Volatility is back! The Bond Market and Stock Market both have a lot to digest. Investors are still weighing concerns about the announced tariffs. The lack of a tariff deal, any tariff deal, is concerning the market. It does not need to be a deal with China, which is the most important deal to make, investors just want to se a deal made. It appears the tariff issue is here for a while. Are the tariffs inflationary, recessionary, or will they drive stagflation?
The ongoing rhetoric between President Trump and Fed Chair Powell is added to the mix of traders concerns. President Trump urged Fed Chair Powell to lower rates. President Trump is pushing Fed Chair Powell to follow the European Central Bank, which lowered rates last week, and lower rates immediately. Fed Chair Powell last week sounded the alarm on growth and inflation risks as a result of the tariffs. Therefore, it does not look like the Fed is budging. The increasing tension is causing shock waves across multiple markets. The Stock Market sold off. The dollar reached levels not seen in three years. Gold spiked to a record high above $3,400.00 per ounce. U.S. Treasury yields are moving back up. We can expect this to be the driving force behind the market moves across all markets.
Apr 14, 2025
The turmoil over the announced United States tariffs on over 75 countries worldwide has sent the markets into a whirlwind. We have seen the Stock Market and Bond Markets both with a Jekyll and Hyde response. First the Stock Market is up, then it is down, then up and then down. The Bond Market has reacted the same. Yields are up, then yields are down, then yields are up again. The Stock Market and Bond Market do not like uncertainty. Are we entering Trade War? How will other countries respond? How will China respond? Will they increase their current tariffs on U.S. imports? Are the tariffs inflationary? Will the tariffs push a worldwide recession? Will we enter a period of “stagflation” similar to the late seventies? This uncertainty created the combined market volatility. This volatility has spooked investors and homebuyers alike.
Before we panic, we need to remember that tariffs on U.S products creating significant trade imbalances are in place in all of these countries. The U.S. tariffs are “reciprocal” in nature, meaning the United States has placed tariffs on these countries similar to the tariffs on U.S. goods. This is an effort to “balance” trade. This will create uncertainty as countries come to the negotiating table with the U.S. This will eventually settle the markets. If you have money in the Stock Market, do not panic. If you are looking to buy your new home, this is still a great time to buy! Do not let the tariff noise create turmoil in your own finances.
Apr 01, 2025
IMPORTANT & BREAKING – The Department of Housing & Urban Development, insurer of FHA loans, has announced that effective May 25, 2025, Non-Permanent Residents of the US will no longer be able to take advantage of the benefits afforded by FHA loans. Still the most popular loan option amongst first-time homebuyers, this action will severely limit many of our neighbors’ options to become proud new homeowners this year. There’s still time for our Non-resident peers to qualify for FHA loans, but only until May 25th. Tell your neighbors, tell your friends! FDM is your FHA specialist and we’re working overtime to ensure that all eligible borrowers make the cutoff. Fidelity Direct Mortgage remains committed to equal and equitable lending for all and will stop at nothing to ensure that “No FDM Borrower Will Ever Be Left Behind.”
On March 26, 2025, HUD issued Mortgagee Letter 2025-9 Revisions to Residency Requirements fundamentally changing the rules for Non-Permanent Resident Aliens access to FHA loans. Basically, after May 25, 2025, Non-Permanent Resident Aliens will no longer be eligible for FHA financing. If you are a Non-Permanent Resident Alien, and are in the United States under certain Visa’s, EAD or TPS Status, you can apply for an FHA loan prior to May 25, 2025. What happens if you cannot act prior to May 25th? FDM has a solution. FDM offers special financing for multiple Visa types and immigration status. The FDM team are experts working with clients with various immigration status. Even if you do not qualify for FHA or Conventional Financing.
If you are unsure of your VISA, TPS or EAD status, please contact your FDM Mortgage Professional today. We can help.
Mar 10, 2025
Was it the weather? Was it an increase in mortgage rates? It is hard to determine exactly what caused it, but the NAR announced January Pending Home Sales plunged to a record low. Did the coldest January in 25-years keep buyers out of the market? Did mortgage rates popping back over 7% discourage buyers? Was it a combination? Whatever cause the January Pending Home Sales to plunge is actually good news if you are looking to buy. Listing inventory increased again up 26.7% compared to the previous month. The slowing market has Sellers looking to make a deal. Fewer Buyers mean less competition for your dream house. The short term trend has shifted to Buyers. Seller Closing Costs assistance is back. Price Reductions are happening. This is the perfect time to buy. In order to take advantage of the current market Buyers have to move quick. As the Winter thaws buyers return to the market and the advantage shifts back to the seller.
Mar 3, 2025
The FHLBank Grant Programs are open. FDM has FHLBank Down Payment Assistance available for qualified buyers. The FHLBank Affordable Housing Program (AHP) offers $17,500.00 in Down Payment Assistance to First-Time Buyers. The FHLBank Community Partners Program offers First Responders, Veterans, Active Duty Military and School Employees $20,000.00 in Down Payment Assistance. The FHLBank Workforce Housing Plus Program offers $15,000.00 in Down Payment Assistance. The Down Payment Assistance for each of these programs may be completely forgiven and not paid back. FDM has a competitive advantage compared to banks in this product. The FHLBank Program fill up quickly. Encourage your clients to see if they qualify for one of the FHLBank Programs today.
Jan 27, 2025
On Wednesday, January 29, 2025 the FOMC will meet for the first time in 2025. The Fed cut rates three consecutive meetings at the end of 2024. The Federal Funds Rate is down a full 1.0% from where it was in early September. The FOMC cut rates three time, but mortgage rates went up each time. Why? The mortgage market expected these moves by the Fed already building each rate cut into mortgage bond pricing. The FOMC started interest rate cuts in September, but mortgage rates moved in the opposite direction. The Federal Funds Rate immediately impacts short term borrowing. For consumers Credit Card rates, automobile loans rates , Home Equity Lines of Credit Rates will move lower after the Fed moves. Mortgage rates work differently. The average mortgage rate has been over 6% for over two-years. They have remained stubbornly above 6%, reaching over 7% again at the end of the year, even with Fed rate cuts, prompting some to say “Sixes are the new normal”. Mortgage rates are closely aligned to U.S. Government Bonds particularly the U.S 10-Year Treasury Bond. Inflation concerns remain elevated. Inflation has not abated as quickly as hoped keeping demand for longer term bonds weak.
The FOMC meets again the 27th. What is the Fed expected to do? Based on the Fed Futures Market no rate cut is expected. In fact, according to the Fed Futures Market, we will not a see a Fed Rate cut until June. Inflationary pressures remain keeping mortgage rates elevated. We have seen mortgage rates drift lower over the past week, which is a good sign, but not the sign of a major shift to lower rates. We expect interest rate volatility for the near future.
Contact your FDM Investment Specialist today for more details.
Jan 9, 2025
The new Fannie Mae and Freddie Mac Loan Limits are in effect. The 2025 Conforming Loan limit is $806,500.00, a 5.2% increase from 2024. The 2025 High-Cost Area Loan Limits increased to $1,209,750.00. How do higher Conforming Loan Limits help me? There is a big difference between "Agency loans", which by definition are loans meeting Fannie Mae or Freddie Mac Guidelines, and Jumbo Loans. Jumbo loans are often called "Non-Agency Loans." Agency loans have lower interest rates than Jumbo loans. Agency loans are generally easier to qualify for. Agency loans are more flexible with Debt-to-Income Qualifying Ratios and have lower credit score requirements. Agency loans allow for a higher loan to value, which means a lower down payment.
If you have been searching for your new home limited to Conforming Loan Limits, due to loan qualification, your market opportunity has been expanded by $39,950.00 in 2025. If you were looking in the $800,000.00 price range, your mortgage rate just got lower. The increased Conforming Loan Limits just made homeownership a litlle more affordable in 2025. Contact your FDM Mortgage Professional today to see how the new Conforming Loan Limits can help you.