Mortgage Rates Hit Yearly Lows—Then Jump After the Fed Cut. Here’s What Happened (and Why Applications Just Surged)

After touching yearly lows early in the week, the average 30-year fixed rose following the Fed’s rate cut—thanks to the dot plot and Powell’s comments. Still, mortgage applications just saw their biggest weekly jump since 2021 as homeowners reacted to earlier rate declines. Here’s what it means for buyers and homeowners.

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This Week at a Glance

• Early week: The average 30-year fixed drifted to new 11–12 month lows, tracking a steady four-month slide in bond yields.

• Wednesday (Fed Day): The Fed cut the policy rate by 0.25%, but the average 30-year fixed moved higher afterward. The reason wasn’t the cut itself—it was the Fed’s “dot plot” and Chair Powell’s message to keep decisions data-dependent.

• Thursday: Stronger-than-expected economic data reinforced the move, leaving rates higher than earlier in the week (but still lower than most of the past year).

• Applications response: The MBA weekly survey showed the biggest jump in total mortgage applications since 2021—driven mostly by refinances reacting to the prior drop in the average 30-year fixed.

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Why Did Rates Rise After a Rate Cut?

The Fed Funds Rate (what the Fed controls) isn’t the same as mortgage rates. Mortgage pricing tracks the bond market (especially mortgage-backed securities and Treasuries), which responds in real time to economic data, inflation trends, and Fed guidance about the future.

• The cut itself was already expected and priced in.

• The dot plot suggested a cautious path—less urgency to cut aggressively—so bonds sold off and the average 30-year fixed increased from the week’s lows.

• Powell emphasized meeting-to-meeting decisions. Translation: incoming data will drive where rates go next.

Important note about headlines: Some weekly surveys can show “lower” rates because they average several days—including earlier, lower readings—while today’s live pricing may already be higher after the Fed events.

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The Applications Surge: A Lagged Reaction to Falling Rates

Even as rates rose late in the week, the MBA report captured a huge jump in activity from borrowers who moved when the average 30-year fixed was testing yearly lows:

• Refinance applications spiked sharply (best levels since 2022 and far above last year’s pace).

• Purchase applications also improved, nearing their best levels since early 2023.

• Overall applications posted the largest weekly increase since 2021.

Bottom line: When the average 30-year fixed dipped, many homeowners and buyers didn’t wait—they acted. That surge showed up in this week’s application data, even though rates later bounced.

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What This Means for You

• Buyers: The window created by the recent drop in the average 30-year fixed triggered real activity. Even with a mid-week bounce, rates remain lower than most of the past year. Inventory, negotiations, and payment targets matter more now than guessing the exact bottom.

• Refinancers: If your current rate is well above today’s average 30-year fixed, it’s worth a fresh look. Many homeowners with larger loans led the move, and refi math can work even when the market is volatile—especially if you can trim rate, shorten term, or consolidate higher-interest debt.

• Everyone: Expect volatility around upcoming economic reports (jobs, inflation). Markets will take cues from data—not from the last Fed headline.

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Quick Timeline Recap

• Mon–Tue: Bonds firmed and the average 30-year fixed touched yearly lows.

• Wed (Fed Day): Fed cuts policy rate by 0.25%. Dot plot + Powell push bonds weaker; average 30-year fixed rises from the lows.

• Thu: Stronger data extends the move.

• All week: Applications jump—a lagged reaction to earlier rate declines.

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Action Steps

1. Get a personalized scenario: Your credit profile, loan type, down payment, and points all shape your real rate—not the headlines.

2. Price a lock-and-shop plan: If you’re home-shopping, consider strategies that allow you to lock with flexibility.

3. Refi checkup: Run a quick savings analysis (rate, payment, term, and breakeven).

4. Stay data-driven: The next few reports (jobs, inflation) can swing pricing. Being pre-approved and rate-ready helps you move first when the window opens.

Joe Costa

Park Place Collective Group

619.990.7552

www.parkplacecollective.com

#mortgagerates, #average30yearfixed, #fedratecut, #mortgageapplications, #refinance, #homebuying, #housingmarket, #bondyields, #dotplot, #mortgagenews 

 

Cold Plunge + Community Vibes: Join Us at Little Italy Core Power Yoga This Saturday!

When: Saturday, September 27, 2025 • 9:00 AM – 12:30 PM
Where: Little Italy Core Power Yoga (San Diego)

Hosted by: Joe & Marni Costa and the Park Place Collective team

San Diego friends—come chill with us (literally). We’re teaming up with Little Italy Core Power Yoga for a pop-up cold plunge experience plus exclusive membership specials this Saturday morning. Whether you’re a yogi, a weekend warrior, or just curious about the cold-plunge craze, this is the perfect drop-in event to reset, recharge, and connect with the neighborhood.

What’s Happening

• Guided Cold Plunge Rotations (9:15 AM – 12:15 PM): Short, structured immersions with breath tips and a coach on standby.

• Membership Specials: Event-only offers from Core Power Yoga—great time to commit to your practice.

• Wellness Lounge: Light refreshments, community networking, and Q&A with our Park Place Collective team on financial wellness (mortgage, real estate, and protection solutions).

• Giveaways: Enter our on-site raffle for studio swag and Park Place Collective perks.

What to Bring

• Small towel + sandals

• Comfortable clothes or a swimsuit for the plunge

• Water bottle (we’ll have hydration on hand, too)

First-Time to Cold Plunge?

We’ve got you. Expect 1–3 minutes in cool water with guided breathing. It’s optional, scalable, and you can stop anytime. Please skip the plunge if you’re feeling unwell or have health concerns—always listen to your body and consult a medical professional if needed.

Why We’re Hosting

At Park Place Collective, we believe financial health and physical wellness go hand-in-hand. Our events are designed to build community, share positive energy, and offer practical resources—whether that’s a yoga membership special or a smarter plan for your next purchase or refinance.

Drop In—No RSVP Needed

Swing by anytime between 9:00 AM and 12:30 PM. Bring a friend, meet the neighborhood, and leave feeling refreshed.

Questions?

Email: jcosta@parkplacefg.com • Office: 619-990-7552
Park Place Collective • 402 West Broadway, Suite 400, San Diego, CA 92101
Joe Costa NMLS: 113396 • Park Place Collective NMLS: 2571108

Unlock Affordability with Our Permanent Mortgage Rate Buydown Program

 

At Park Place Collective, we’re always looking for innovative ways to help our clients, partners, and future homeowners achieve their real estate goals with confidence. That’s why we’re excited to introduce our Permanent Mortgage Rate Buydown Program—a strategy designed to create long-term affordability and make today’s market more accessible.

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What Is a Buydown Program?

Traditionally, many buyers and agents are familiar with temporary rate buydowns like the 3-2-1 program. In that structure, the seller uses concessions to lower the interest rate for the first few years of the loan—3% the first year, 2% the second, 1% the third—before the rate returns to the original market rate. While effective in the short term, temporary buydowns don’t provide a lasting solution.

How the Permanent Buydown Works

Our Permanent Buydown Program flips this idea into a long-term advantage. Instead of applying seller concessions to just the first few years, we use those concessions to permanently lower your interest rate for the life of the loan.

For example:

• If today’s market rate is 6%, and the seller offers a 2% concession, we apply that directly to the loan.

• Your new rate becomes 4%—not just for a few years, but for the entire term of your mortgage.

This means lower monthly payments, stronger buying power, and peace of mind knowing your financing is structured for the long haul.

Why This Matters for Buyers and Sellers

• For Buyers: A permanently lower interest rate can mean significant savings over the life of the loan, making homeownership more affordable and sustainable.

• For Sellers: Offering this strategy makes your listing stand out in a competitive market, creating a strong incentive for motivated buyers.

• For Agents & Partners: This is another tool to bring creative solutions to your clients, positioning you as a trusted advisor who understands the market.

A Smarter Way to Use Seller Concessions

Instead of focusing only on short-term benefits, the Permanent Buydown Program gives buyers a true financial edge and sellers an effective way to make deals happen. It’s a win-win strategy in today’s evolving real estate market.

Ready to Learn More?

If you’re a buyer, seller, or real estate professional interested in how our Permanent Rate Buydown Program can work for you, let’s connect. Our team at Park Place Collective is here to walk you through the numbers and show you how this strategy can open the door to long-term savings and stronger negotiations.

info@parkplacecollective.com (619) 990-7552

Joe Costa NMLS: 113396

646-245-7856

 

The Federal Housing Finance Agency (FHFA) has announced the new conforming loan limits for 2026, and they’ve once again increased, giving buyers and homeowners more flexibility and opportunity in today’s housing market.

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2026 Conforming Loan Limits Are Here – What It Means for You

The Federal Housing Finance Agency (FHFA) has announced the new conforming loan limits for 2026, and they’ve once again increased, giving buyers and homeowners more flexibility and opportunity in today’s housing market.

📈 What Changed in 2026

The baseline conforming loan limit for one-unit Conventional and VA loans* is now:

• $819,000 (up from $806,500)

This means more buyers can access homes with a conforming loan instead of moving into jumbo territory — often resulting in more favorable terms, easier qualification, and lower down payment requirements.

Updated Conforming Loan Limits for 2–4 Unit Properties:

• Two-unit: $1,048,500 (up from $1,032,650)

• Three-unit: $1,268,000 (up from $1,248,150)

• Four-unit: $1,575,000 (up from $1,551,250)

These increases open doors for multi-family buyers and investors looking to qualify under conforming guidelines.

🏡 Why This Matters

• More Buying Power: You can purchase a higher-priced home while still taking advantage of conforming rates and guidelines.

• Easier Qualification: Conforming loans typically offer more streamlined underwriting compared to jumbo loans.

• Investor Advantage: Multi-unit properties now have higher limits, making it easier to expand your portfolio.

💡 Take Action in 2026

With higher loan limits, now is the time to:

• Explore new purchase opportunities

• Revisit your refinance strategy

• Consider multi-family investments

At Park Place Collective, we’re here to guide you through every option — from conventional and VA loans to jumbo and specialty portfolio products.

✨ Start qualifying more borrowers now — or see what opportunities these new limits unlock for you.

📞 Contact Joe Costa and the team at Park Place Collective today to get started.

Mortgage Rates Near 11 Month Lows—What’s Next With the Fed?

 

The average 30-year fixed is holding near the lowest levels since October 2024 after a weak jobs report and cooler inflation. Here’s why—and what to watch at next week’s Fed meeting.

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Quick Take

• The average 30-year fixed dipped to new ~11-month lows after the early-September jobs report, then held in a tight range this week.

• Producer Price Index (PPI) came in cooler than expected; CPI was roughly on-target with a softer “supercore.” Together, that supported steady-to-slightly-better rates mid-week.

• Friday saw a tiny uptick (~0.02%)—more “position-squaring” than new data. We’re still near the lowest levels since Oct 2024.

• Borrower activity jumped: applications rose week-over-week, with both purchase and refinance demand improving.

Tip: If you priced a loan in August, re-check your numbers. Small rate moves can meaningfully change payment or approval amounts.

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Why Rates Behaved This Way (in plain English)

• Jobs report (Fri before Labor Day): Weaker hiring = markets expect slower growth = bond rally = lower mortgage rates.

• PPI (Wed): Wholesale inflation cooled more than expected, helping rates hold steady instead of drifting higher.

• CPI + Jobless Claims (Thu): CPI was close to forecasts; a softer “supercore” plus higher unemployment claims kept the door open for the Fed to prioritize growth risks over inflation—supportive for rates.

• Today/Friday: A minor bounce likely tied to traders tidying positions ahead of next week’s Fed announcement. The consumer takeaway: we’re still near the lows.

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That Chart You’re Seeing Online? Here’s the Catch

Many headlines cite Freddie Mac’s weekly survey, which averages rates from Thu–Wed. Daily indexes (like MND’s) captured the sharp drop last Friday immediately; Freddie reported it the following Thursday.

Result: you may read “rates fell this week” when the drop actually happened last Friday—and daily tracking shows this week was mostly flat, inside a narrow low range.

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What This Means for You

If You’re Buying

• Lock-and-Shop: If you find the right home, consider locking while we’re near multi-month lows.

• Boost Approval Power: Lower rates can improve your max purchase price or make monthly payments more comfortable.

• Pre-Approval Refresh: If your pre-approval was from mid-summer, ask for a quick payment and cash-to-close refresh.

If You’re Refinancing

• Debt Consolidation: Lower rates can help reduce total monthly outflow—run a break-even on costs vs. savings.

• Shorter Term / Faster Payoff: Some homeowners can shave years with minimal payment change.

• PMI/MIP Check: If you’re close to 20% equity (or have FHA to refi out of MIP), ask about removing mortgage insurance.

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What Could Move Rates Next

• The Fed (next week): A 0.25% Fed Funds cut is widely expected and already reflected in today’s mortgage rates.

• What matters more: the “dot plot” (Fed members’ path for future cuts) and the press conference. A more rate-friendly path could help keep mortgage rates at the low end of the range; a cautious tone could limit further improvement.

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Quick Stats Snapshot 

• Average 30-year fixed: near multi-month lows, with a very small Friday uptick that still leaves rates close to the best levels since Oct 2024.

• Applications: Weekly data show broad demand improvement—purchases up, refis up—with some borrowers exploring ARMs given their rate advantage vs fixed.

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Rates, terms, and availability vary by borrower profile, loan type, and market conditions. Not a commitment to lend.

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Have questions or want to talk through your options?
Just fill out the contact form on this page or give me a call—We're here to help.

Joe Costa and The Park Place Collective Group

402 West Broadway, Suite 400

San Diego, CA 92101

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#mortgagerates, #average30yearfixed, #homebuyingtips, #refinance, #housingmarketupdate, #CPI, #PPI, #jobsreport, #FedMeeting, #DotPlot, #bondyields, #firsttimehomebuyer, #VALoans, #FHALoans, #jumboMortgage, #mortgageapplications

Freedom Down Payment Assistance: Making Homeownership Possible

At Joe Costa and Park Place Collective, we believe everyone deserves the opportunity to achieve the dream of homeownership. That’s why we’re proud to introduce the Freedom Down Payment Assistance Program (Freedom DPA)—a truly unique solution designed to remove one of the biggest barriers to buying a home: the down payment.

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What Makes Freedom DPA Different?

Most lenders offer “down payment assistance” programs that come with strings attached:

• Payback requirements

• 2nd liens on your property

• Long holding periods (5–10 years!) before forgiveness

The Freedom DPA is different. It’s fully forgivable—right from the start. That means:
✅ No payback.
✅ No 2nd lien.
✅ No resale restrictions.
✅ True financial freedom.

When you close, your assistance is a grant, not a loan. You walk away owing nothing.

How It Works

• 2.5% or 3.5% Fully Forgivable Grant applied toward your down payment.

• No lien, no payback, no hidden restrictions.

• First-time homebuyers qualify, plus additional options are available for other buyers.

• Approved through AUS (DU or LP) and TBD underwriting—giving real estate partners confidence up front.

• Manual underwriting available for borrowers with a 580+ FICO.

For example: On a $500,000 purchase, with Freedom DPA, your principal loan balance after closing is just $482,500 (excluding UFMIP).

Why Agents & Builders Love It

• TBD Underwriting = faster offers, stronger buyer confidence.

• Rate Options = real flexibility, with competitive pricing and discount buckets.

• Seller Concessions + Freedom DPA = more buyers can qualify, especially in a market where sellers are motivated.

• Builders can use forward commitments with this program to attract more buyers.

Why It’s Called “Freedom”

Because this program truly sets buyers free. Free from debt obligations tied to their down payment. Free from liens that can block a refinance or sale. Free to move, upgrade, or refinance when life changes—without penalty.

Ready to Learn More?

The Freedom Down Payment Assistance Program is already helping families, first-time buyers, and agents unlock opportunities in today’s market.

Visit www.freedomdpa.com or contact Joe Costa and Park Place Collective today to see how Freedom DPA can help you—or your clients—make the dream of homeownership a reality. O:619-990-7552 C:646-245-7856 info@parkplacecollective.com www.freedomdpa.com

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🛫 How Park Place Collective Helps Aviation Professionals Save Thousands on Home Financing

 

At Park Place Collective, we understand the aviation industry like few others do. Pilots, flight attendants, ground crew, and contractors all face unique financial realities—irregular schedules, variable income, and frequent relocations. That’s why we created specialized mortgage programs designed specifically for aviation employees and contractors.

And here’s the best part: through our special pricing programs, we’re able to help aviation borrowers save thousands of dollars on their financing.

✈️ Why Aviation Professionals Need Tailored Solutions

If you work in aviation, you already know your income doesn’t look like a traditional 9-to-5 paycheck. Overtime, per diem, bonuses, and contractor pay can make it hard for conventional lenders to see your full financial picture. Many aviation professionals end up overpaying simply because lenders don’t know how to structure their loans.

That’s where Joe Costa and Park Place Collective step in with a fresh approach.

💡 What Makes Our Pricing Programs Different?

Because we’re both a brokerage owner and originators, we have the flexibility to set thinner margins than traditional lenders or loan officers. That means:

• Lower Interest Rates – Aviation employees and contractors qualify for below-market pricing.

• Reduced Origination Fees – We often cut costs where big banks mark them up.

• Customized Loan Programs – From bank statement loans to asset qualifier programs, we match the right product to your unique pay structure.

These savings aren’t just small — they often translate into tens of thousands of dollars over the life of a loan.

🛫 Designed for Aviation Employees & Contractors

Our special pricing programs apply across the entire aviation workforce, including:

• Pilots & First Officers – With flexible income solutions that account for variable hours and bonuses.

• Flight Attendants – Relocation-friendly programs that keep your financing smooth when hubs change.

• Air Traffic Controllers & Ground Crew – Tailored mortgage approvals that respect overtime and non-traditional pay schedules.

• Independent Contractors – Alternative documentation programs, like bank statement or P&L loans, that highlight your real earning power.

🔒 More Than Mortgages – Protection & Real Estate Too

Through Park Place Collective, we don’t just stop at home loans. We also provide:

• Real Estate Services – Buy, sell, or invest with confidence, backed by Compass expertise.

• Life Insurance Protection – Shield your family and your financial future.

It’s all part of giving aviation professionals a complete financial flight plan.

🚀 Ready for Takeoff?

If you’re an aviation professional or contractor, don’t settle for overpriced mortgages. With our special pricing programs, you’ll keep more money in your pocket and enjoy a smoother path to homeownership.

👉 Contact Joe Costa and Park Place Collective today to see how much you could save with our aviation mortgage solutions

Why Mortgage Rates Move: What Every Homebuyer Should Know

 Mortgage rates have been making headlines lately—especially after Fed Chair Jerome Powell’s big speech at Jackson Hole. But let’s be honest… most people see the news and think:

“So… is now a good time to buy or refi?”

The short answer: maybe—but only if you understand what’s really going on.

Let’s break it down in plain English.

The Good News: Rates Are Low… For Now

We’ve seen mortgage rates hit 10-month lows, especially after some shaky economic data earlier this August. Powell’s speech gave markets confidence that the Fed might cut rates soon to support a slowing economy.

Here’s a quick timeline:

• Aug 1 Jobs Report: Weak numbers caused mortgage rates to dip fast.

• Aug 13–14: More mixed data kept rates down.

• Aug 22 (Jackson Hole): Powell hinted at being open to rate cuts → bonds rallied → mortgage rates dropped again.

• After Labor Day (Sept 2): Rates bumped slightly higher due to international inflation, but held steady thanks to weak U.S. manufacturing data.

Bottom line: Rates have been bouncing within a range, but staying near the lowest levels we’ve seen in nearly a year.

So… Why Do Mortgage Rates Even Move?

Let’s keep it simple.

1. Mortgage rates follow the bond market

When people hear “interest rates,” they think of the Fed. But in reality, mortgage rates follow what’s happening with bonds—especially the 10-Year Treasury.

If bonds go up → rates go down.
If bonds drop → rates go up.
Think of it like a seesaw.

2. Economic data changes everything

When a report says the economy is slowing (like a weak jobs report), investors get nervous. So they put money into safe investments like bonds—which pushes bond prices up and rates down.

But when inflation looks hot or global news spooks investors (like last week’s EU inflation surprise), bonds sell off and rates can go up again.

3. The Fed matters… but not how you think

The Fed doesn’t set mortgage rates directly. What they say influences what investors expect will happen.

If markets think the Fed will cut rates soon, mortgage rates usually fall before the Fed actually does anything.

Why This Matters for You

Let’s say you’re thinking about buying a home or refinancing.

When rates are low, your monthly payment could be hundreds of dollars cheaper.

That’s why staying informed is so important.

But don’t wait too long.

As we’ve seen, just one economic report or global headline can cause a swing.

This Friday’s inflation report and next week’s jobs numbers?

They could be game-changers.

What Smart Buyers and Homeowners Are Doing Now

Here’s what we’re telling clients every day on the Loanzify app:

“Rates are low, but don’t assume they’ll stay there. Lock in if it makes sense for your goals—because timing the market perfectly is impossible. Let’s build a plan together.”

Whether you’re buying, refinancing, or just exploring your options, now’s a smart time to get prepped.

Ready to run the numbers or lock in a great rate?

Have questions or want to talk through your options?

Just fill out the contact form on this page or give me a call—I’m here to help.



Source: Mortgage News Daily