August Real Estate Roundup: Looking Forward to Fall

As summer draws to a close and kids are heading head back to school, I’ve got some updates for you to keep in your own “locker” for when you speak with clients (and I’m happy to give them more details): 

Recent Lower Mortgage Rates 

After the bond market’s reaction to a weaker-than-expected July jobs report, we’ve been seeing the lowest rates we’ve had in nearly a year.* Although questions remain about the labor market and the economy in general (more on that below), this kind of shift can turn hesitant shoppers into serious buyers.  

Now’s a great time to check in on every on-the-fence client and lead. And don’t worry about breaking it all down – I can walk them through the numbers. 

*Source: Mortgage News Daily’s “Today’s Mortgage Rates” 

Latest Fed News 

The Fed voted to keep rates as-is during their July meeting, but industry experts say a .25% rate cut at their next meeting (September 17) seems more likely now. 

As you know, mortgage rates follow the bond market more than the Fed Funds Rate. And those bonds tend to respond to big economic reports like the abovementioned jobs report and the monthly Consumer Price Index (CPI), issued by the Bureau of Labor Statistics.* 

The August 12 CPI increased a seasonally adjusted 0.2% for July and 2.7% on a 12-month basis. The core CPI (which excludes food and energy prices), increased 0.3% for the month and 3.1% from a year ago. Tariffs did appear to affect some categories like household furniture, but other areas that normally would be hit by import duties showed little reaction. 

So, with both unemployment and inflation in the spotlight, plus one Fed member stepping down and leaving a vacancy for President Trump to fill, investors began predicting a September rate cut. The hope is to make borrowing more affordable (credit cards, etc.), and increase spending and economic activity. But there will also be another jobs report (Sept. 5) and CPI report (Sept. 11) beforehand, so we’ll see what happens. 

As always, rates are just one part of a client’s bigger mortgage picture – it’s never too soon to send them my way so we can make a plan. 

*Source: Bureau of Labor Statistics, https://www.cnbc.com/2025/08/12/cpi-inflation-report-july-2025.html 

VantageScore Update 

Last month we heard that the FHFA is working to make VantageScore credit scores an option for mortgage lenders with Fannie and Freddie loan qualifications.* VantageScore fans hope this competition with FICO will mean more flexibility for your buyers. 

But we’re not there yet. The mortgage industry is working closely with the FHFA, Fannie, and Freddie on if, when, and how this rollout will happen. There are a lot of details to sort out, and we’re making sure you and your clients are kept top-of-mind. 

In the meantime, keep reminding your buyers that the strategy for good credit scores hasn’t changed: limit credit usage, pay bills on time, and keep balances low. 

*Featured information offered as of August 18, 2025, and is subject to change without notice. Sources: Mortgage Bankers Association press release, MBA VantageScore YouTube briefing, FHFA Credit Scores Policy Page 

Could New Construction Be the Right Option? 

While your clients may think a newly constructed home is out of reach, it could be more affordable than they think. 

According to recent NAR and U.S. Census Bureau data*, the second-quarter median price for a new single-family home was $410,800 – that’s $18,600 lower than that of existing ($429,400 median price). This marks the largest historical gap between the two. And with builders offering incentives, there could be even more savings for a home your buyers can truly make their own from the very start. 

I’m excited to start the fall with some positive news – reach out any time!

*Source: https://eyeonhousing.org/2025/07/market-flip-existing-homes-outprice-new-homes/