Bene's Blog • homeownership • February 13, 2026

How Owning a Home Builds Generational Wealth

by Bene Foley

For many families, buying a home is more than just finding a place to live—it’s a powerful way to create long-term financial stability. Over time, homeownership can help build wealth that can be passed down to children and grandchildren, creating what’s often called generational wealth.

What Is Generational Wealth?

Generational wealth is money or assets that are passed from one generation to the next. This can include savings, investments, businesses, and real estate. A home is often the largest and most reliable asset a family owns, making it a cornerstone of long-term financial security.

Home Equity Grows Over Time

When you own a home, each mortgage payment builds equity—the portion of the home you truly own. Unlike rent, which is gone once it’s paid, mortgage payments gradually increase your ownership stake in a valuable asset.

Over the years, homes often increase in value. This combination of rising property values and growing equity can turn a monthly housing payment into a long-term investment.

Stability Creates Opportunity

Homeownership provides stability that can benefit future generations in important ways. Children who grow up in stable housing are more likely to succeed in school and have access to consistent community resources. This stability can lead to better job opportunities and financial habits later in life.

A stable home base also allows families to plan for the future instead of constantly adjusting to rising rents or unexpected moves.

A Home Can Be Passed Down

A home can be inherited by children or sold to provide financial support for education, business ventures, or other investments. Even if the home is not passed down directly, the wealth created through its sale can help the next generation get started with fewer financial obstacles.

This head start can make a meaningful difference in breaking cycles of financial struggle.

Protection Against Inflation

As the cost of living rises, rent typically increases too. A fixed-rate mortgage, however, stays the same over time. This protects homeowners from inflation and allows more of their income to go toward savings, retirement, or helping family members.

In this way, homeownership not only builds wealth but helps preserve it.

A Foundation for Long-Term Financial Health

Owning a home encourages disciplined saving, financial planning, and responsible money management. These habits often get passed down through families, teaching children the value of investing and long-term thinking.

Over time, this creates not just financial wealth, but financial knowledge—a key part of generational success.

Bene's Blog • market news • mortgage rates • February 5, 2026

Mortgage Rates Hold Steady Near 6.1% Following Fed Chair Nomination

by Bene Foley

Mortgage interest rates edged up only slightly this week, remaining largely unchanged even after President Donald Trump announced his nominee for the next Federal Reserve chair.

The average rate for a 30-year fixed mortgage rose to 6.11% for the week ending February 5, according to Freddie Mac. That’s just a hair above last week’s 6.10%, and well below the 6.89% average seen during the same time last year.

In other words, rates are still hovering near their lowest point in years.

Freddie Mac Chief Economist Sam Khater noted that recent stability is encouraging as the spring homebuying season approaches.

He explained that a mix of improving affordability and a growing number of homes for sale is creating more favorable conditions for both buyers and sellers.

Why the Fed Chair Nomination Matters to Mortgage Rates

Trump’s nomination of Kevin Warsh to replace Jerome Powell as Federal Reserve chair has brought renewed attention to how leadership at the Fed influences financial markets.

Warsh previously served as a Federal Reserve governor from 2006 to 2011, a period that included the global financial crisis and the Great Recession.

According to Realtor.com® Senior Economist Anthony Smith, the announcement has prompted investors to focus closely on the Fed’s independence and long-term policy direction.

Even before the nomination, Trump had been vocal about wanting a Fed chair who would push for significantly lower interest rates as part of a strategy to address housing affordability.

The Fed Doesn’t Set Mortgage Rates Directly

Although the Federal Reserve controls short-term interest rates, mortgage rates are shaped mostly by long-term bond yields and investor expectations.

Mortgage rates tend to track the 10-year Treasury yield, which reflects:

Inflation outlook
Economic growth
Market confidence in future policy decisions

Smith warns that if investors begin to doubt the Fed’s independence or its commitment to controlling inflation, long-term yields could rise—even if the Fed is cutting short-term rates.

This creates a paradox: political pressure for lower rates can sometimes push mortgage rates higher instead of lower.

What Really Drives Housing Affordability

Mortgage rates are only one piece of the affordability puzzle.

Other key factors include:

Wage growth
Inflation levels
Job market stability

When inflation is under control and employment remains strong, families are more likely to feel confident about buying or upgrading a home.

Smith emphasized that long-term affordability depends on a Federal Reserve that maintains credibility in its dual mission: keeping prices stable while supporting maximum employment.

How Mortgage Rates Are Calculated

Mortgage rates are influenced by both economic conditions and individual borrower profiles.

On the market side, lenders look closely at the 10-year Treasury yield and broader signals about inflation and economic health. Rising inflation expectations usually push rates higher, while weaker economic data can bring them down.

On the personal side, lenders evaluate your financial risk, including:

Credit score
Loan amount
Down payment size
Property type
Loan term

Borrowers with stronger financial profiles typically qualify for lower interest rates, while higher-risk borrowers are offered higher rates.

How Your Credit Score Affects Your Mortgage Rate

Your credit score plays a major role in determining both whether you qualify for a mortgage and what interest rate you’ll receive.

General benchmarks include:

500–619: May qualify for certain government-backed loans, such as FHA programs
620: Considered “fair” credit
740 and above: Usually qualifies for the best available rates

Different loan programs and lenders have their own requirements, and some apply stricter standards to reduce risk.

Lenders want to be confident that borrowers can repay the loan, so stronger credit histories typically translate into lower borrowing costs.

Bottom Line

Despite political headlines, mortgage rates have barely moved and remain near recent lows. The tiny uptick to 6.11% reflects market caution rather than a major shift in direction.

For buyers and sellers heading into the spring market, stability—not dramatic change—is the real story.

Bene's Blog • Sellers • Tips for Selling • January 22, 2026

What Is a CMA—and Why Sellers Shouldn’t Skip It

by Bene Foley

If you’re thinking about selling your home, you may hear real estate agents mention a “CMA.” It sounds technical, but it’s actually one of the most practical tools a seller can use. A Comparative Market Analysis, or CMA, helps determine what your home is realistically worth in today’s market—and getting this right can make a big difference in your final sale price.

What a Comparative Market Analysis Really Is

A CMA is a report that estimates your home’s value by comparing it to similar homes in your area. These comparisons are based on properties that have recently sold, homes that are currently on the market, and listings that didn’t sell.

Think of a CMA as a snapshot of your local market right now. It shows how your home compares to others buyers are considering and reflects what people are actually willing to pay—not just what sellers hope to get.

Unlike online price estimates, a CMA looks beyond basic data. It accounts for your home’s condition, updates, layout, location, and current market trends—details that automated tools often miss.

The Types of Homes Included in a CMA

A strong CMA usually looks at three kinds of comparable properties:

Recently sold homes
These show what buyers have actually paid for similar homes, usually within the past three to six months. Because they reflect real transactions, these are the most important comparisons.

Active listings
These homes are your current competition. Buyers will compare your home to these listings when deciding what to tour and what to offer.

Expired or withdrawn listings
Homes that didn’t sell can be just as informative. They often reveal pricing mistakes, presentation issues, or timing challenges that sellers can learn from and avoid.

Why Pricing With a CMA Matters

Pricing your home correctly from the start is critical. If a home is priced too high, it often sits on the market longer. Buyers may assume something is wrong and either pass it over or wait for price reductions. In many cases, this leads to a lower final sale price.

Pricing too low has its own downside—you risk leaving money on the table and giving up equity you’ve built over time.

A CMA helps identify a realistic price range that attracts buyers while still aiming to maximize your return.

A CMA Does More Than Set a Price

Beyond pricing, a CMA can offer insight into what’s happening in your neighborhood. It may show which features are helping homes sell faster, what buyers seem to value most, or where small improvements could make a noticeable difference.

For example, you might learn that updated kitchens are driving higher prices, or that certain layouts are more appealing in your area. This kind of information can help you make smarter decisions before listing.

Why Professional Insight Still Matters

A CMA isn’t just a spreadsheet—it’s a combination of data and experience. A well-prepared analysis takes into account things like:

The condition and updates of your home
Local supply and demand
Seasonal market patterns
Buyer expectations in your area
Design, layout, and less-obvious features that affect value

This human judgment is something automated estimates simply can’t replace.

Getting Ready to Sell

A CMA is often the first step toward a confident, well-planned sale. It helps you understand your home’s position in the market and gives you a solid foundation for pricing and timing decisions.

If you’re curious about your home’s value, want insight into your neighborhood’s trends, or are thinking ahead to a future sale, a personalized CMA can provide clarity—and it’s a great place to start. If you are in the Portland, OR area, I am happy to do one for you free of charge.

Bene's Blog • homeownership • Sellers • December 17, 2025

Year-End Home Paperwork You’ll Be Glad You Organized

by Bene Foley

Whether you bought, sold, refinanced, or simply kept up your home this year, organizing your housing paperwork now can save time, stress, and money when tax season arrives. A little effort before the end of the year makes April much easier.

Gather Mortgage and Property Tax Documents

Start by locating your mortgage interest statements. These usually arrive in January, but it’s smart to double-check that your lender has the correct mailing address or online delivery settings.

Next, collect property tax bills and proof of payment. Even if your taxes are paid through escrow, your year-end statement should show the total amount paid. Having this information in one place makes tax prep smoother.

Tip: Store mortgage statements, insurance documents, and property tax records together—either in a single digital folder or a clearly labeled paper file.

Keep Records of Home Improvements

Major home upgrades can matter later, especially when you sell. Improvements that increase value or extend the life of your home—such as a roof replacement, new HVAC system, or an addition—can increase your cost basis and reduce future capital gains taxes.

Save documentation such as:

Contractor invoices and receipts
Permits
Photos showing before-and-after work

Routine maintenance, like basic painting or yard work, usually doesn’t qualify, so those records aren’t necessary for tax purposes.

Save Energy-Efficiency Upgrade Paperwork

If you invested in energy-efficient upgrades this year—such as solar panels, energy-efficient windows, insulation, or a heat pump—hang on to all receipts and manufacturer certification documents.

These items are often required to claim federal energy tax credits, and tracking them down months later can be difficult.

Tip: Create a clearly labeled folder for energy-related upgrades so everything is easy to find during tax season.

Organize Home Office Records (If Applicable)

If you work from home and use a dedicated space for business, keep documentation that shows how much of your home is used for work and what expenses are tied to that space.

Helpful records include:

Utility bills
Internet service statements
Receipts for office equipment or improvements

A quick photo of your workspace before year-end can also help support your records if questions come up later.

Store Closing Documents for Recent Purchases or Sales

Buying or selling a home comes with a large stack of paperwork, and some of it is important long after closing day. If you bought or sold a home this year, keep your closing disclosure, settlement statement, and records of major expenses such as agent commissions or points paid.

Buyers may need these documents to confirm deductions, while sellers may need them for future capital gains calculations.

Review Insurance and Warranty Information

While not always tax-related, it’s smart to confirm that your homeowners insurance declarations page is up to date and that warranties or service contracts are easy to access. These documents can be critical if you need to file a claim or document a loss.

A Small Effort Now Pays Off Later

Spending an hour or two organizing home-related paperwork before year-end can make tax season far less stressful—and may even help you spot deductions or credits you might otherwise miss.

If you want a simple homeowner document checklist or help deciding which records are most important for your situation, I’m happy to help you get organized and ready for the year ahead.

Bene's Blog • December 8, 2025

Holiday Fire Safety

by Bene Foley

The holidays are full of warmth, lights, and gatherings—but they also bring an increased risk of home fires. A few small precautions can make a big difference in keeping everyone safe. Use this quick checklist to stay ahead of common holiday fire hazards.

Decorations & Lighting

Use only lights labeled for indoor or outdoor use, and match them to where you’re hanging them
Check cords for fraying or damage before plugging them in
Don’t overload outlets or power strips
Turn off decorative lights before leaving the house or going to sleep

Candles

Keep candles at least 12 inches away from anything that can burn
Never leave a burning candle unattended
Use sturdy, non-flammable holders
Consider flameless candles in high-traffic areas or homes with kids and pets

Holiday Cooking

Stay in the kitchen while cooking, especially when frying or using high heat
Keep towels, paper, and decorations away from the stove
Turn pot handles inward to prevent spills
Set a timer to avoid forgetting food on the stove

Fireplaces & Space Heaters

Have fireplaces and chimneys inspected and cleaned regularly
Use a fireplace screen to block sparks
Keep space heaters at least three feet away from furniture, curtains, and wrapping paper
Always turn off heaters before going to bed or leaving the room

Christmas Trees

Keep live trees well-watered to prevent drying out
Place trees away from heat sources, exits, and walkways
Turn off tree lights when you’re not home or sleeping
Dispose of live trees promptly once they start to dry
Do not use candles to decorate your tree

Smoke Alarms & Emergency Prep

Test smoke alarms monthly and replace batteries as needed
Make sure you have smoke alarms on every level of your home
Keep a fire extinguisher in the kitchen and know how to use it
Review your family’s fire escape plan and practice it

A little planning goes a long way. Taking these simple steps can help ensure your holidays stay festive, warm, and—most importantly—safe.

Bene's Blog • homeownership • November 20, 2025

Buyer Satisfaction Is Rising—But Younger Homeowners Still Feel the Most Regret

by Bene Foley

A Slower Market, Happier Buyers

More homeowners today say they’re happy with their purchase compared to two years ago. According to Realtor.com’s 2025 Consumer Attitudes & Usage Study, 37% of buyers reported no regrets about their home purchase this year—up from 31% in 2023.

Researchers surveyed more than 1,200 people who bought a home in the previous year. One big shift they noticed: fewer buyers feel like they overpaid. In 2023, 15% felt they spent too much; this year that number dropped to 8%.

Why the improvement? The market has slowed down. Homes sit on the market longer—about 63 days as of October—which gives buyers more breathing room. Instead of rushing to submit offers within hours, shoppers now have time to think through their decisions and make choices that fit their budget.

Buyers Are Planning Ahead

Because the pace has cooled, buyers have been able to come to the table more prepared. Many have improved their credit, saved for down payments, and taken time to understand what they can realistically afford.

In today’s environment, buyers also feel more comfortable negotiating—asking for concessions, taking their time, and avoiding the intense pressure that defined the pandemic market.

Home Repairs and Maintenance: A Major Source of Regret

Among those who did have regrets, the biggest complaint was unexpected home maintenance. About 16% said repairs and upkeep cost more or took more effort than they expected.

This issue may be even more common for people who bought during the height of the seller’s market. At that time, buyers often had very little negotiation power. Many waived repairs or inspections just to win the bid. As a result, some new owners are now discovering expensive problems they didn’t know existed—leading to bigger maintenance headaches and more regret.

The second-most common regret was spending more on household items like furniture or appliances (15%). Another 14% said they were surprised by how much their savings dropped after the purchase.

Other frustrations included higher ownership costs, rising interest rates, and homes not being in the condition the buyer expected.

Still, despite these issues, overall emotions around buying a home have improved. Satisfaction and excitement have increased, while stress and frustration have declined since 2023.

Big Differences Across Generations

Age played a major role in whether buyers felt confident—or filled with second thoughts.

Baby Boomers and Gen X: More Experience, Fewer Regrets

60% of baby boomers reported no regrets
45% of Gen X buyers said the same

These groups tend to have more experience buying homes. Many also have equity from previous properties and more time to save money, which reduces pressure and makes the process smoother.

Millennials: Struggling With Costs

Millennials were far more likely to feel regret. Their biggest concerns were:

depleted savings
higher-than-expected maintenance costs
unplanned or surprise expenses

Gen Z: The Most Regret of All

Only 27% of Gen Z buyers said they had no regrets—making them the least confident group. Their top stressors included:

skipping inspections
high ownership costs
unexpected household spending
choosing homes with long commutes or in neighborhoods they later felt unsure about

Gen Z buyers also face more mortgage denials than older groups, which adds to their frustration and limits their options. Many end up making trade-offs they later question, such as buying smaller homes or settling for less-ideal locations.

A Market That Favors Buyers—At Least More Than Before

Researchers say the overall trend is clear: in a slower, less competitive market, buyers feel more control. They have time to think, the ability to negotiate, and a better understanding of what they’re getting into.

Today’s homebuyers, especially those who prepare financially, are entering the process with more confidence—reducing the chances of buyer’s remorse, even if challenges still exist for younger generations.

Bene's Blog • homeownership • market news • November 13, 2025

Portable Mortgages: A Bold Fix for Homeowners—But Not for Affordability

by Bene Foley

The U.S. housing market is stuck. Millions of homeowners are clinging to ultra-low mortgage rates they locked in years ago, unwilling to sell and face today’s much higher rates. Now, the Federal Housing Finance Agency (FHFA) is exploring an idea that could shake things up: portable mortgages—loans that homeowners could take with them to their next house.

At first glance, the proposal sounds like a lifeline for a frozen market. But while it might help some homeowners move more easily, critics warn it could deepen affordability issues for everyone else.

What Are Portable Mortgages?

In a typical home sale, your mortgage doesn’t move with you—you sell your house, pay off the old loan, and take out a new one at the current interest rate. A portable mortgage flips that idea on its head.

With portability, a homeowner could keep their original low-rate loan and transfer it to their new home. For example, if you bought your first home with a 4% loan and want to move, you could carry that same rate forward instead of starting over at today’s 7% rates.

In theory, this could help people move for jobs, family needs, or lifestyle changes without giving up their favorable financing. But in practice, the system that supports U.S. mortgage lending isn’t built to handle that kind of flexibility.

Who Would Benefit

The biggest winners in a portable mortgage world would be current homeowners with low-rate loans. They could sell, buy again, and keep their affordable monthly payments intact.

“Portability could give many families the freedom to move again,” says one housing economist. “It would open up inventory that’s been locked in by low rates.”

Real estate professionals agree that it could make upgrading or downsizing less painful. For people whose finances haven’t changed dramatically, being able to carry their mortgage would make a move much more feasible.

Who Would Be Hurt

For everyone else, the picture isn’t as rosy. Renters and first-time buyers—who already face steep home prices and high borrowing costs—would gain little from portability.

If current owners can buy more easily while keeping their cheap loans, demand for homes could rise. And more demand usually means higher prices. That would make it even harder for new buyers to enter the market.

Financial experts also warn that portable mortgages could rattle the foundation of the U.S. mortgage system. Today, banks bundle mortgages into securities that investors buy—helping to keep rates lower for everyone. But if loans could move from house to house, the underlying risk and property value would change midstream, making those securities far more complicated and less attractive to investors.

That could ultimately push rates higher for everyone, not lower.

Why It’s Different From 50-Year Mortgages

The portable mortgage idea came shortly after a different proposal—President Trump’s suggestion for 50-year mortgages. That plan was widely criticized for stretching debt across generations and loading buyers with excessive interest payments.

While a 50-year loan might help people qualify for homes by reducing monthly payments, borrowers would pay far more over time. Critics say it would mostly benefit banks and builders rather than homebuyers.

Portable mortgages, on the other hand, don’t make homes cheaper—they just make it easier for certain homeowners to move without losing their old rate. Neither plan fixes the core issue: housing is still too expensive, and new buyers remain locked out.

The Bottom Line

Portable mortgages could loosen the grip of the lock-in effect, giving low-rate homeowners the chance to move again and freeing up some inventory. But they’re no cure for the deeper affordability crisis.

Those with existing mortgages would win big. Renters, first-time buyers, and the overall mortgage market might lose even more ground.

In short, portability could make it easier to move—but not cheaper to buy.

Bene's Blog • homeownership • market news • October 29, 2025

Mortgage Rates Dip as the Fed Cuts Interest Rates Again — But Don’t Expect Big Drops Yet

by Bene Foley

The Federal Reserve has lowered its benchmark interest rate for the second time in a row, aiming to steady the economy as layoffs increase and the government shutdown drags on. The move brings the federal funds rate down to a range between 3.75% and 4%, the lowest level since late 2022.

But while this rate cut could influence borrowing costs, it doesn’t guarantee that mortgage rates will fall further — at least not right away.

A Divided Fed Faces a Tough Balancing Act

The latest decision from the Federal Open Market Committee wasn’t unanimous. Some members pushed for a deeper cut, while others wanted to hold rates steady. These differences reflect a growing divide among policymakers about how best to support an economy that’s showing both inflation pressures and signs of weakening job growth.

After focusing heavily on curbing inflation over the past few years, the Fed is now shifting some attention toward the labor market, which has shown signs of cooling. Recent layoffs across major companies — including Amazon, UPS, Target, and Paramount — have raised concerns about rising unemployment.

Still, cutting rates too aggressively could reignite inflation, leaving the Fed caught between two difficult goals: price stability and maximum employment.

Why Mortgage Rates Don’t Fall Automatically

It’s a common misconception that when the Fed cuts rates, mortgage rates drop right away. In reality, the two are only loosely connected.

The Fed’s decision affects short-term interest rates, which influence how much banks pay to borrow from each other. Mortgage rates, however, are tied more closely to long-term bond yields, especially the 10-year Treasury note. When investors expect rate cuts or slower economic growth, those yields typically fall — and mortgage rates often follow.

That’s why mortgage rates had already declined in the weeks leading up to the Fed’s announcement. The average 30-year fixed mortgage recently dipped to around 6.2%, its lowest point in a year. Because the market had already anticipated this move, much of the effect was “priced in.”

Why Mortgage Rates Might Rise Again Soon

Ironically, the Fed’s cautious tone could push mortgage rates slightly higher in the short term. In his remarks after the meeting, Fed Chair Jerome Powell suggested that additional rate cuts this year aren’t guaranteed. That comment rattled investors, pushing the 10-year Treasury yield higher — a trend that usually increases mortgage rates.

In other words, while the Fed’s cut helps signal lower borrowing costs, market reactions and investor expectations often play a bigger role in determining what happens next for mortgage rates.

Economic Uncertainty Clouds the Outlook

The Fed’s next policy meeting is scheduled for December 9–10, when officials will again decide whether to lower rates further. Some analysts believe another quarter-point cut is likely, but others expect the Fed to hold steady, especially with limited economic data available due to the ongoing government shutdown.

Without access to key reports on jobs and unemployment, policymakers are essentially steering without a clear dashboard — or, as one analyst put it, “driving through fog.”

Until the Fed gains more clarity, it’s likely to proceed cautiously.

What This Means for Homebuyers and Homeowners

For anyone thinking about buying a home or refinancing, this latest cut offers modest relief, but it’s not a game changer. Mortgage rates may move slightly lower in the coming weeks, but without a major downturn or stronger evidence of economic weakness, big drops are unlikely.

Still, today’s rates — hovering just above 6% — are well below last year’s highs. That means slightly more purchasing power for buyers and potential savings for homeowners who refinance.

For now, the Fed’s move helps create a bit more stability in an uncertain economy — and a small window of opportunity for those looking to lock in a better rate.

Bene's Blog • buyers • market news • Sellers • October 16, 2025

Housing Market Slows as Government Shutdown Continues

by Bene Foley

More than two weeks into the federal government shutdown, the U.S. housing market is showing clear signs of stagnation. Both buyers and sellers appear hesitant to make moves amid ongoing uncertainty in Washington, D.C., and this slowdown is expected to persist until the political impasse is resolved.

For the week ending October 11, national real estate activity—both listings and sales—remained muted, according to Realtor.com’s latest housing trends report. Homes are staying on the market longer than they did a year ago, and prices have largely flattened, suggesting increased inventory and reduced competition.

Economists at Realtor.com anticipate that overall housing activity will remain sluggish until lawmakers reach an agreement to reopen the government. Areas dependent on the now-suspended National Flood Insurance Program, which is necessary for many home transactions in flood zones, may experience a complete pause in closings.

Despite the overall cooling trend, some regions are holding steady. Select markets in the Midwest and Northeast—where demand is high but supply remains tight—continue to favor sellers, with buyers still facing competitive conditions.

New Listings and Pricing Trends

New listings last week were up 4.6% compared to the same period in 2024, showing only a modest increase. Data from the September Monthly Housing Report revealed a 1.2% annual decline in newly listed properties, highlighting ongoing hesitation among homeowners to put their houses up for sale.

Inventory levels continue to rise, up 15.1% from a year ago, marking the 100th consecutive week of annual gains. With 1.1 million active listings nationwide, the market has seen more homes accumulating rather than turning over quickly. The typical property now remains on the market for about 63 days—four days longer than last year—returning to pre-pandemic norms.

The slow pace of sales has led many sellers to reduce asking prices in hopes of securing offers before year’s end. Although the national median list price rose slightly, up 0.4% from the previous year, the price per square foot dipped by 0.5%, marking the sixth consecutive week of decline.

This softening in price per square foot suggests that underlying home values are being pressured by weak sales activity, even as overall price levels appear stable.

Uncategorized • September 17, 2025

Buyers Rush for Loans as Mortgage Rates Fall

by Bene Foley

Mortgage rates saw their biggest drop in a year last week, setting off a wave of activity in the housing market. Loan applications jumped to their highest level in more than four years as buyers moved quickly to secure lower borrowing costs.

Applications for home purchases climbed 7% compared with the previous week and were 23% higher than the same time last year, according to the Mortgage Bankers Association. Refinancing also gained ground as more homeowners looked to take advantage of the rate decline.

The drop followed a dip in Treasury yields, which often influence mortgage rates, as concerns about a slowing labor market grew. While rates are still higher than they were a year ago, they have eased from earlier peaks this year, offering some relief to buyers. Many have turned to adjustable-rate mortgages, which typically start with lower payments than standard fixed-rate loans.

The Federal Reserve is scheduled to meet on September 17 and is expected to reduce its short-term benchmark rate. Though the Fed’s decisions do not directly set mortgage rates, they can shape overall lending conditions. A weakening job market may also prompt several rounds of rate cuts in the months ahead, which could further pull mortgage rates down.

Economists say lower rates could help unlock more demand after a slow summer, when elevated borrowing costs kept many buyers out of the market. A larger pool of qualified buyers could provide a boost to home sales moving into the fall.

Current Averages (week ending Sept. 11, 2025):

30-year fixed-rate mortgage: 6.35% (down from 6.50% the week prior; 6.20% one year ago)
15-year fixed-rate mortgage: 5.50% (down from 5.60% the week prior; 5.27% one year ago)