Tim Powers · October 6, 2026

Temporary Buydowns — Mortgage Update for Realtors

 

Tuesday, October 6, 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

Business Partner Update

Temporary Buydowns — Mortgage Update for Realtors

Rate Snapshot · November 2, 2026

▼ -0.07%

Conventional 30-Year

7.13%

FHA 30-Year

6.96%

VA 30-Year

6.76%

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

The 2-1 Buydown Is One of the Best Negotiating Tools You're Not Using

Seller concessions used to mean price reductions. In this market, the smarter play is a temporary buydown — and it's one of the best tools I have to make a deal work for everyone. Here's how it works: the seller contributes funds at closing that temporarily reduce the buyer's interest rate. A 2-1 buydown means the buyer pays 2% below the note rate in year one, 1% below in year two, and the full rate from year three on. On a $400K loan at 7%, that's a first-year payment closer to a 5% rate — a difference of about $500/month. Buyers love the cash flow relief in those early years. Sellers get a cleaner deal without a price cut that affects their comp. And you get a transaction that actually closes. I can model this for any buyer in a few minutes. If you're negotiating a deal right now and the payment gap is the issue, a buydown conversation might be exactly what's needed.

I'll run a buydown model for your active listing or buyer today — just reach out.

Mortgage News Daily

Home Prices Keep Climbing, Just Not Everywhere

Home prices picked up a little more speed in July, as both FHFA and the S&P Cotality Case-Shiller Home Price Indices showed stronger annual appreciation than in their previous readings. The gains remain relatively modest by historical standards, and while nominal prices are still moving higher nationally, the picture looks considerably less impressive after accounting for inflation. The FHFA H

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HousingWire

Vishal Garg lays out Better 2.0 plan during shareholder call

Daniel Lewis was removed as interim CEO effective Oct. 5, per an SEC filing

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Mortgage News Daily

New Home Sales Back in The Range After Uncommonly Big Bounce

The new home market returned to the longer-term range last month, with sales seeing their 4th biggest rebound in 4 years.  Sales of new single-family homes rose to a seasonally adjusted annual rate of 684,000 in August, up 6.4% from July's revised 643,000 but 2.0% below the same month last year. The increase puts sales back above the 600,000 mark after July's pullback, although the broader tr

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Did You Know?

USDA Guaranteed Loan

Zero down in eligible suburban and rural areas.

USDA guaranteed loans offer 100% financing to income-qualifying buyers purchasing in eligible areas — which often includes suburban communities within 30–45 minutes of major metros. No down payment, no monthly PMI.

✓Zero down payment required
✓No monthly mortgage insurance (just a small upfront fee)
✓Competitive 30-year fixed rates
✓Geographic eligibility broader than most agents realize

Share With Your Buyers

Homeownership After Closing

1.

Set up your mortgage autopay immediately — a missed payment hurts your credit fast.

2.

Keep 1–3% of your home's value in an emergency maintenance fund for repairs.

3.

Refinancing may make sense if rates drop 0.5–1% or more from your current rate — check in annually.

4.

Your home equity grows with every payment and every dollar of appreciation — track it.

5.

Review your homeowner's insurance annually to make sure coverage keeps pace with replacement costs.

Tip of the Week

Consider a 15-year mortgage if the payment fits your budget — you'll pay significantly less in total interest.

Signature

Your Mortgage Advisor

Tim Powers

Tim Powers

Powers Group Financial powered by Barrett Financial Group LLC

NMLS# 178079 · Company NMLS# 181106

tpowers@barrettfinancial.com

+1 253-209-4247

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16427 N Scottsdale Rd Ste 410, Scottsdale, AZ 85254  ·  +1 253-209-4247  ·  timpowersmortgage.com  ·  NMLS# 178079 · Company NMLS# 181106

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