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Today: 30-year fixed jumped to 7.28% this week, the largest weekly climb since October 2022, while nationwide price cuts hit 20.8% of listings, the highest share in four years. Buyers are pulling back, but September inventory sat just 9.1% below pre-pandemic levels.
The 30-year fixed rate climbed 25 basis points to 7.28% this week, reaching its highest level in nearly three years (Realtor.com Research). That's the largest weekly jump since October 2022. The 10-year Treasury yield hit roughly 20-year highs as markets weighed oil prices and incoming economic data. August PCE inflation came in cooler than expected, with core PCE at 3.0%, which could offer some relief if Friday's jobs report softens enough to strengthen Fed rate-cut expectations.
Rates fell slightly Thursday to 7.54% from 7.60%, a mid-day recovery likely driven by traders covering bets ahead of the jobs report and concerns over European bond contagion (Mortgage News Daily). If job growth comes in much weaker than expected, this conversation continues. If it's stronger, rates stay elevated until further notice.
The national median hit $420K, but what matters for Clarke County is how this rate environment is affecting your active listings and buyer consultations. The 30-year rate has risen nearly a full percentage point over the past year, adding more than $200 to the monthly principal and interest payment on a median-priced home even as median prices have fallen year over year (Realtor.com Research). Test buyer budgets at both ends of a 75-basis-point range around today's rate. The headline rate is only part of the picture: most borrowers' rates span nearly a full percentage point depending on credit score, down payment, and lender choice, a difference worth roughly $28,400 in buying power.
Pending home sales fell below year-ago levels by the widest margin in eight months. Inventory was just 9.1% below pre-pandemic levels, the narrowest gap yet, and 20.8% of listings had a price cut in September, the highest share in four years (Realtor.com Research). Buyers have more options at lower price points, but elevated mortgage rates keep homeownership out of reach for many. Contact clients who were priced out in spring. If they've improved their credit or saved for a larger down payment, they may have more buying power than they think, even at these rates.
Scale Lending provided $67.5 million in construction financing for the 200-unit second phase of Meridia Rahway Brownstones, a five-story multifamily complex in Rahway, N.J. (Commercial Observer). The debt is structured as a 30-month term with two six-month extension options and will retire an existing senior loan while funding final construction. Capodagli Property Company delivered the first phase, a 298-unit building, in 2022. The second phase will add 200 units spanning 168,500 square feet, of which six units will be affordable, plus 2,000 square feet of ground-floor retail and 493 parking spaces.
Helaba supplied a $105 million bridge loan for CrossHarbor Capital Partners and Mill Creek Residential's Modera Riverview, a 400-unit mixed-use project in Nashville that debuted in 2024 (Commercial Observer). The construction takeout financing replaced a $103 million PNC construction loan. Helaba cited the property's location, experienced multifamily operators, and Nashville's strong momentum as key factors.
Dwight Capital closed a $47 million HUD 221(d)(4) construction loan for Hunington Properties' 279-unit The Vic at Sunterra development in Katy, Texas, slated for completion in fall 2028 (Commercial Observer). The nonrecourse HUD-backed financing includes a 24-month interest-only period followed by a fully amortizing 40-year term. The property is the sole multifamily community within the 1,300-acre Sunterra master-planned community and sits within the Katy Independent School District.
FHFA plans to direct Fannie Mae and Freddie Mac to shift from "tri-merge" to "bi-merge" credit reports for loan deliveries within weeks, possibly announcing the change at the MBA conference in Chicago on Oct. 12 (HousingWire). Lenders would be able to pick two of the three bureaus instead of all three. The requirement is expected to take effect one to three months after announcement. This follows FHFA Director Bill Pulte's decision to allow Fannie and Freddie to use VantageScore, a joint venture of Equifax, Experian, and TransUnion.
FHFA's decision to apply the same loan-level price adjustments (LLPAs) for Classic FICO and VantageScore 4.0 loans is being viewed as a de facto incentive for VantageScore adoption, raising investor concerns around risk-based pricing (HousingWire). The move eliminates a prior 20-point calibration between the two credit scores. VantageScore accounted for 5.5% of originations through Fannie and Freddie in September, flat compared to August, with Rocket Mortgage and United Wholesale Mortgage responsible for 95% of that volume. For a borrower with a 700 FICO score and a 720 VantageScore, the upfront LLPA drops from 1.5% to a lower rate under the new system. Watch how secondary market investors respond. If they differentiate between MBS pools backed by loans underwritten with newer credit scoring models versus Classic FICO, lenders may face pricing pressure on the back end.
FHFA and Fannie and Freddie announced that approved lenders may apply for a temporary exception to the November 2nd Uniform Appraisal Dataset (UAD) 3.6 appraisal delivery deadline, following concerns from the MBA about readiness across the broader appraisal ecosystem (Mortgage News Daily).
FHA nominee Matt Jones told senators he would focus on increased housing supply, lower costs, and expanded access to homeownership (HousingWire). Jones said FHA had streamlined more than 150 program requirements, reducing costs for consumers, and pointed to manufactured housing as a way to increase supply and reduce construction costs. He also said the agency could support affordable multifamily development by coordinating FHA insurance with other public funding, including Low-Income Housing Tax Credits. His priorities include finalizing guidance to bar large institutional investors from buying HUD-owned properties and accepting two additional credit-score models for FHA underwriting starting in 2027, which could help younger borrowers with limited credit histories qualify for mortgages.
The 21st Century ROAD to Housing Act and a new USDA-HUD memorandum of understanding aim to streamline environmental reviews for federally funded rural housing projects (HousingWire). The MOU evaluates potential exemptions from environmental reviews and establishes a process for one agency to adopt environmental impact statements approved by the other. ROAD also gave USDA authority to separate Section 521 Rental Assistance from a Section 515 mortgage for certain properties nearing loan maturity, helping prevent the loss of affordable housing in rural communities. Rural housing leaders say chronic barriers persist, including difficulties accessing financing, inadequate infrastructure, acute labor shortages, and burdensome zoning restrictions.