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Mortgage Market Update
Erez Shimoni
Erez Shimoni
Sunday, October 25, 2026
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Rates dipped, but builders are losing hope |
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This week we're seeing some conflicting signals in the housing market. Mortgage rates took a breather, but builder confidence just hit a 14-year low—here's what it means for you.
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National Mortgage Rates · October 29, 2026
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Conventional 30-Year
7.15%
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Source: Optimal Blue daily mortgage indices via FRED
Rates shown are national mortgage index rates and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.
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Refinancing
When a rate drop actually makes sense
Not every rate movement deserves your attention. A small dip might not be worth the time and cost of refinancing, but a meaningful shift in your favor can put real money back in your pocket—especially if you're planning to stay in your home long enough to recoup the upfront costs. The math depends on your current loan, how long you've owned the home, and what rates look like today compared to what you locked in. If you've been wondering whether now is worth a closer look, I can run the numbers and show you exactly what a refinance would mean for your monthly payment and your total interest over time.
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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.
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Tips for Homeowners
Rate Lock Strategy: When and How Long to Lock
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1.
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A rate lock guarantees your interest rate for a set period — typically 30, 45, or 60 days. Longer locks cost more but protect you if the process takes longer than expected.
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2.
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Lock when you're under contract and confident the deal will close. Don't lock before you have a signed purchase agreement — you're paying for protection you may not need.
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3.
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If rates drop after you lock, ask your lender about a float-down option. Some lenders offer this for a fee, allowing you to take advantage of a lower rate if the market moves in your favor.
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HousingWire
Click the link below to read the full article.
| Key takeaway: Rate dips often don't last long, so if you're thinking about buying or refinancing, this is the time to lock in numbers and get serious with a lender. |
Read full article →
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Mortgage News Daily
Home builders are increasingly pessimistic, with their confidence index dropping to 29 in October—the worst reading since 2012. Rising construction costs, labor shortages, and higher mortgage rates are all taking a toll on their willingness to build, and buyer interest has been falling even faster. This slowdown could mean fewer new homes on the market in the coming months.
| Key takeaway: Expect new construction inventory to remain tight, which means existing homes will likely stay valuable and competitive. |
Read full article →
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Redfin
Signed contracts on homes have reached their lowest level on record, signaling that buyers are pulling back from the market. This metric is a leading indicator of future sales, so it tells us that the slowdown we're seeing now will likely continue. Affordability remains a major hurdle for many households.
| Key takeaway: If you do decide to sell, your home may face less competition from other sellers, which could work in your favor. |
Read full article →
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Mortgage News Daily
Housing starts fell sharply in September, though building permits remained relatively steady. Single-family construction was hit hardest, suggesting builders are being cautious about starting new projects even as they hold their permits. This disconnect hints at continued uncertainty in the market.
| Key takeaway: Builders are hesitant but not giving up entirely, so expect the new construction pipeline to stay constrained through the winter months. |
Read full article →
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Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Erez Shimoni team any time and we'll walk you through your options. |
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6 Wills Way, Piscataway, NJ 08854
908-705-5882 | www.applywitherez.com
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