November Real Estate Roundup: Fall Rates Update and What’s Next After the Shutdown

I hope your holiday season is off to a great start! The shutdown is over, and I’m excited about how things are trending for the rest of 2025. Let’s get into it…

The Latest on Rates

Mortgage rates have ticked up a bit the last few weeks (currently around 6.29% for the 30-year fixed rate national average, but the 52-week average remains around 6.68%). I’ll keep you posted as to what happens now that the shutdown has ended. A lot of factors are at play, and it will take time for things to shake out.

Let’s also note that rates went up, not down, after the Fed cut its base rate again at the end of October. This is not unusual and is a good reminder that the short-term Fed rate is not a mortgage rate, which is tied more closely to 10-Year Treasury yields.

We’re still waiting on some key economic reports, which can influence markets and Fed policy decisions. The long-awaited jobs report finally arrived on November 20 and was stronger than expected. But the central bank hasn’t had a complete set of employment and inflation data since September. Until we truly know the state of the economy, it’s hard to say where rates will go, or if the Fed will make another cut at its final 2025 meeting in December.

So, we’re in a wait and see pattern as all these pieces, hopefully, fall back into a more positive place in the coming months. But markets are always unpredictable, so if you have a client who has found a property they really love, now is the time to talk to me and make a plan!

The Shutdown is Over – What Do I Tell Clients?

As I mentioned, getting back to business post-shutdown could take a while, but I’m here to guide you through it!

• Clients who are ready to buy – especially using the largely unaffected Conventional or FHA loans – can reach out to me now to get started.

• For clients held back by the deeper disruptions (USDA loan or flood insurance delays, for example), it’s time to talk so we can make a plan as these programs get rolling again.

• Your clients who experienced furloughs or delayed or no pay could qualify for a mortgage – we’ll just need a few extra documents confirming their return to employment and income.

Finally, with any luck, clients who waited on purchasing during the shutdown might be ready now – especially with sellers and builders making deals and year-end coming. Fall is a great time to buy, so I’d love to talk to them.

A Quick Look at VA Loans

Veterans Day was earlier this month, but Atlantic Bay is proud to serve military borrowers every day, especially with the great benefits of VA Loans (some you may not be aware of!) Let’s take a quick look:

VA Loans vs. other programs: You may already know that VA loans come with:

• No down payment (although your client can make one to borrow less money)

• No mortgage insurance

• No loan limits or purchase price limits for borrowers with full entitlement

Additionally, interest rates for VA buyers are typically lower than Conventional programs. Veterans could also qualify for higher debt-to-income ratios, as long as they meet residual income requirements.

Funding fees instead of mortgage insurance: The funding fee is a one-time, upfront payment VA borrowers make (rolled into the loan) to help offset the loan’s cost to taxpayers. It’s waived for clients considered 10% or more disabled.

Lower credit score minimums: The VA does not have a credit score minimum, but lenders still require one. (Atlantic Bay accepts VA applicants starting at 580.)

VA clients can pay for the required termite inspection: Why is that good news? It gives your clients negotiating power. Previously, VA borrowers could not be charged for the pest inspection (around $100), which could hold up contract negotiations and closing. Vets can also pay for moisture inspections, agent admin fees, and agent commissions.

Multiple loans, multiple uses: VA Loans can be used more than once, and borrowers can carry more than one VA Loan at a time (depending on eligibility and entitlement). Veterans can assume other Veterans’ loans, and two unmarried Veterans can split eligibility.

State VA programs: State housing agencies also offer help for military clients, including down payment and closing cost assistance. Many state and government agencies also offer programs (often called “Heroes”) that offer extra benefits and credits to military members.

Atlantic Bay offers E-closings: No matter where your military client is stationed, we can work with them to do all or most of their closing remotely!

Reach out with any questions and have a happy Thanksgiving!