This year has flown by — Halloween will soon be upon us! We’d love to hear what your costume will be. One of my personal favorites is Frida Kahlo with the unibrow — what’s yours?
🏡 Buyers’ Market
As time on the market expands for most sellers, the market is definitely shifting to benefit buyers. Traditionally, this time of year brings fewer new listings, so we may see market times adjust even more. We’ll see…
💸 Mortgage Rates
The news of the day is: steady as she goes. Rates are up slightly from their lows of the year but are still holding in a fairly tight range near 6.5%.
Did you know what the average mortgage rate was in 2006? Between 6.1% and 6.8%. Sound familiar? The big difference, of course, is that home prices were much lower then, making housing more affordable.
Keep in mind there’s no “one-size-fits-all” mortgage rate. Rates vary widely depending on factors like loan amount, credit score, program type, property type, purpose, points paid, and more.
🏠 Time to Refinance?
The average homeowner nationwide now holds roughly 59% equity — an astounding number driven by the dramatic rise in values during the COVID era when rates were artificially low.
That creates enormous opportunity for refinancing, especially if rates move closer to the 5% range as many anticipate next year.
For homeowners who want to tap into their equity without giving up their low first mortgage rate, there are now second trust deed options — both fixed and variable (typically known as HELOCs).
A Reverse loan in 2nd position is also growing in popularity for those over age 55 with a low-rate first mortgage. This option is structured as a fixed-rate second with full proceeds drawn at closing — not a line of credit — a new twist on reverse financing!
💼 Creative Loan Programs
In the mortgage world, these are called Non-QM loans (non–qualified mortgages). They don’t fit traditional Fannie, Freddie, or FHA guidelines but are designed to meet real-world borrower needs.
Examples include:
-
Bank Statement Loans – great for self-employed borrowers who deduct significant business expenses.
-
DSCR Loans (Debt Service Coverage Ratio) – for investors, qualified solely on the property’s rental income.
-
1099 Loans – ideal for contractors or gig-economy earners.
We’re also seeing an expansion of asset-based lending, now easier to qualify for than ever. Some programs only require that assets cover five years’ worth of income (divided by 60 months) to qualify.
Down Payment Assistance (DPA) programs are also thriving — some offering up to or even over 100% financing, much like VA or CAL-Vet loans.
Interest-only loans are making a comeback, too. While their rates are slightly higher, the lower monthly payments can be an attractive strategy for borrowers who expect most of their wealth growth to come from appreciation rather than principal reduction.
Finally, bridge loan programs are on the rise again, providing a path to purchase a new home before selling your current one — a great option in today’s market.
🍷 Wine Country & Family Time
We just returned from a quick trip to Paso Robles, where we learned that tourism is down about 30% this year. Despite that, the wineries still seemed busy — many fully booked and requiring reservations for tastings and dining. We enjoyed some lovely wines, caught up with old friends at a wedding celebration, and (of course) brought home a few bottles. 😊
Next, we headed “over the hill” to visit my sister in Madera and took a day trip into Yosemite. The gates were wide open due to the government shutdown, and although most campgrounds were closed, plenty of tourists were out picnicking and taking photos — us included!
We stopped by the historic Ahwahnee Hotel for a quick tour and a little trip down memory lane before watching climbers scale the face of El Capitan. Apparently, there were a dozen or so — we could only spot a few without high-powered binoculars!
Cheers to all!
Go Trojans — and good luck to your teams as well! 🏈
