Hi everyone,
Mortgage pricing improved last week. If buying or refinancing has been on your mind, that's worth a fresh look—but I'd start with what changes in your budget, not just the rate.
If you're buying, I'd also compare a lower purchase price with seller-paid closing costs before deciding what to ask for.
Rates eased. What does that change for you?
Freddie Mac's October 22 weekly average for a 30-year fixed mortgage was 7.32%, down from 7.40% the week before. That's a national benchmark, not a quote for your loan today.
The survey covered October 15–21. Rates kept moving afterward: Mortgage News Daily reported improvement Thursday, then a small increase Friday that still left its index near a one-month low.
Why the improvement? Concerns about technology companies and AI spending continued to play a role. Mortgage News Daily linked Thursday's move to investors buying bonds as tech stocks sold off. More demand for the bonds that fund mortgages can help bring mortgage rates down.
If you paused your home search because the payment felt too high, I'd ask for updated numbers using the same home price and down payment. That makes it easier to see what actually changed.
If you already own, a better market rate doesn't automatically mean replacing your mortgage makes sense. Your existing loan and the cost of a new one still matter.
Does weaker home-sales news mean a better deal?
Not automatically.
NAR reported that September pending home sales fell 7.3% from August. That measures homes going under contract, rather than completed closings.
The important word is September. Those numbers can't tell us how buyers responded to last week's improvement in mortgage pricing.
And a national slowdown doesn't tell you how much room a particular seller has to negotiate. I'd ask your agent what's happening with comparable homes in that neighborhood: what's sitting, what's going under contract, and at what prices?
Use the headline as context. Let the actual homes you're considering guide the conversation.
Strategy Corner
Before you ask for a lower price, compare this
You found a home you like, and you're ready to negotiate. Should you ask for a price reduction—or ask the seller to help with closing costs?
I'd have your agent and lender compare both before you decide.
For example, on a hypothetical $400,000 home, you could explore:
A $390,000 purchase price.
A $400,000 purchase price with $10,000 toward eligible closing costs, if your loan allows it and you have enough eligible costs to use it.
Then compare three numbers: cash needed at closing, monthly payment, and starting loan balance.
The lower price reduces what you're paying for the home. Closing-cost help may let you keep more of your own cash available for repairs, moving or emergencies—but you're buying at the higher price.
The better choice depends on which problem you're trying to solve: a payment that feels too high, or too much cash needed upfront.
Seller credits have limits and can only cover eligible costs; unused closing-cost credit isn't cash you get to pocket. Have your lender confirm what you can actually use before writing the offer.
3 things I'm watching this week
All times Eastern.
Tuesday, October 27, 10 a.m.: How did newly built homes sell in September? Another look at buying activity, with that same reminder that September isn't a snapshot of today.
Wednesday, October 28, 2 p.m.: What does the Fed say about what comes next? The decision is followed by a 2:30 p.m. press conference. A Fed decision doesn't automatically change your mortgage quote; I'll be watching the outlook.
Thursday, October 29, 8:30 a.m.: Is the economy growing while inflation cools? The first estimate of third-quarter economic growth arrives alongside September income, spending and PCE inflation. Those reports help show whether inflation pressure is easing.
Found a home you're considering? Reply if you'd like to compare a price reduction with seller-paid closing costs before deciding what to ask for.
Jessica Eiroa
Mortgage Loan Officer | NMLS #1380149
Five Star Mortgage | Company NMLS #1756744
702-285-0633
[email protected]
eiroahomeloans.com
Educational Disclaimer:
This newsletter is for educational and informational purposes only and is not a commitment to lend. Mortgage rates, programs, terms and availability are subject to change and borrower qualification. This information is not intended as tax, legal or financial advice.
Five Star Mortgage
2629 W. Horizon Ridge Pkwy Suite 140
Henderson, NV 89052