Tuesday, October 27, 2026

A Note From Tim Powers

🏡 Rates Are Improving! Let's Turn November Into More Closings!

Happy Monday, Partners!

Welcome to November!

We're heading into the final two months of the year, and there's some encouraging news in the mortgage market!

Mortgage rates have declined for two consecutive weeks, buyers have more homes to choose from, and motivated sellers are creating opportunities to negotiate.

For agents who stay proactive, this could be an excellent time to turn conversations into contracts!

📉 MORTGAGE MARKET UPDATE — RATES HEADING LOWER!

According to Freddie Mac's October 29 report:

30-Year Fixed: 7.15% — Down from 7.32% last week.

15-Year Fixed: 6.60% — Down from 6.68% last week.

That's two consecutive weeks of improvement!

While rates remain higher than we'd like, the recent downward movement is encouraging. Inflation, economic reports, and bond-market activity will continue influencing rates.

These are national survey averages for conventional, conforming purchase loans involving borrowers with excellent credit and 20% down—not individual rate quotes. Actual rates and costs vary based on qualifications, loan program, down payment, points, and market conditions.

The opportunity? Buyers who stepped away just a few weeks ago may be ready for another conversation!

🏠 ARIZONA & WASHINGTON — MORE CHOICES FOR BUYERS

Phoenix / Scottsdale

September's ARMLS housing report showed approximately 25,251 active listings, up 4.4% year over year, with the median sales price holding at $450,000.

Months of inventory increased to 4.45, giving many buyers additional choices and potential negotiating opportunities.

Washington State

Northwest MLS reported a 24.5% year-over-year increase in active listings during September, while pending sales declined 15.1%.

More inventory and fewer competing buyers may create opportunities to negotiate favorable terms.

My takeaway: The right home, negotiated at the right price with the right financing, can create an excellent opportunity—even when rates aren't perfect!

💰 3 WAYS TO CREATE MORE BUSINESS THIS WEEK

1️⃣ Reconnect With Buyers Before the Holidays

Many buyers assume it's too late in the year to purchase.

Not necessarily!

Reach out to clients who stopped looking and say:

"Mortgage rates have improved recently, and we're seeing more opportunities to negotiate with sellers. Would you like us to revisit your numbers and see what's possible before the holidays?"

One simple conversation could turn into your next closing.

2️⃣ Turn Seller Concessions Into Buying Power

Have a listing that's been sitting on the market?

Instead of focusing only on price reductions, let's explore whether seller-paid closing costs, a permanent rate buydown, or a temporary buydown could make the numbers more attractive.

The best strategy depends on the buyer, loan program, and available seller concessions.

Send me the property and I'll help you compare financing scenarios!

3️⃣ Turn Your Database Into November Appointments

Here's a quick challenge:

Contact five past buyers and five prospects who haven't made a decision.

Don't just ask whether they're still interested.

Offer something valuable: updated purchasing power, estimated payments, or a comparison of financing options.

Your next commission might already be sitting in your database!

⭐ ALREADY PREAPPROVED? LET ME TAKE A SECOND LOOK!

Here's one of the easiest ways to provide additional value to your buyers.

Just because someone has a preapproval letter doesn't necessarily mean they've explored their best financing options.

With over 20 years of mortgage experience and access to 150+ lenders, I can compare loan programs, pricing, and financing structures to see whether another option makes sense.

A second look could uncover:

✅ More competitive interest rates or closing costs.

✅ Lower monthly payments through alternative financing structures.

✅ Additional purchasing power.

✅ FHA, VA, conventional, jumbo, bank statement, or other specialized loan options.

✅ Potential underwriting concerns before they threaten the closing.

Sometimes I'll find an opportunity to improve the financing. Other times, I'll confirm that your buyer already has a great option.

Either way, you're helping protect your client and your transaction.

My goal is simple: Help you provide outstanding service, solve financing challenges, and get more buyers to the closing table.

🚀 LET'S MAKE NOVEMBER A GREAT MONTH!

The agents who continue reaching out, educating their buyers, and finding creative solutions are the ones positioning themselves for success.

Here's my challenge for this week:

Send me ONE buyer who's already preapproved somewhere else, ONE buyer who previously stopped looking, or ONE challenging loan scenario.

Let's see whether we can uncover an opportunity together!

More conversations. More solutions. More contracts. More closings!

Have a fantastic week, and let's go sell some homes!

Tim Powers

These are national mortgage index rates as of November 2, 2026. The 30-year fixed is at 7.13% — down 0.07% from last week, FHA at 6.96%, and VA at 6.76%. For exact rates tailored to your buyers, reach out to your loan officer directly.

Source: Optimal Blue daily mortgage indices via FRED

From Your Lending Partner

DSCR Loans Let Investors Buy on Cash Flow — Not Personal Income

Investor activity in this market remains strong, and the product fueling it is the DSCR loan — Debt Service Coverage Ratio. Unlike conventional investment property loans, DSCR doesn't look at the buyer's personal income at all. It qualifies based on the property's rent-to-mortgage ratio. If the home rents for $2,200 and the mortgage is $2,000, the DSCR is 1.1 — most lenders will approve at that level. This means a W-2 employee with a maxed-out debt ratio, a self-employed investor, or a foreign national can qualify based purely on the deal's cash flow numbers. There's no income documentation, no employment verification, no tax returns. Down payments are typically 20–25%, and rates run about 1–1.5% above conventional. I can close these in 21 days. If you're working with investors — or want to start — I can help you identify which of your listings would pencil as rentals and use that to attract qualified investor buyers. Let's talk.

I'll run DSCR numbers on any property in your portfolio — reach out today.

Mortgage News Daily

Building Permits Hold Steady Despite Slide in Housing Starts

Residential construction failed to find even footing in September, with housing starts declining and single-family building permits pulling back, while total permits held nearly steady and completions edged higher. This week's Census Bureau data highlights weakness in new construction, particularly on the single-family side, while starts and completions were comparatively stable. Privately owned h

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A town hall drew 1,000-plus attendees as members challenged the mandate and meeting restrictions

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Builder Confidence Hits Lowest Level Since 2012

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) dropped three points to 29 in October--its lowest level in 14 years. As per usual, higher mortgage rates, rising costs, and worsening labor and lot conditions were the driving factors.  All three component indices declined, with prospective buyer traffic suffering the steepest drop. HMI Component September

Did You Know?

Non-Warrantable Condo Financing

Get buyers into condos that conventional lenders reject.

Many condo buildings fail Fannie/Freddie warrantability tests — too many investor units, pending litigation, or HOA issues. Portfolio and non-QM lenders have programs for these buildings that your buyers are being turned away from.

Share With Your Buyers

Saving for a Home

Tip of the Week

Test your sump pump before the rainy season by pouring water into the pit — a failed pump can lead to serious basement flooding.

Your Mortgage Advisor