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Mortgage Rate Volatility: What You Can Control as a Buyer
Mortgage rates have been moving up and down lately, and that can make buying a home feel harder to plan for. When rates are unpredictable, many buyers wonder whether they should wait, move forward, or try to time the market.
Here’s the good news: while you can’t control where mortgage rates go next, you can control several factors that may help you secure a better rate. The first step is understanding what’s driving today’s market and knowing where to focus your time and effort.
Mortgage Rate Volatility Is Normal
Recent data from Freddie Mac show that mortgage rates have been fluctuating. After trending downward for well over a year, rates ticked up again this month.
That kind of movement can feel frustrating, especially when you’re doing your best to budget for a home purchase. But occasional increases and decreases are a normal part of the mortgage market. Even over the past year, there have been periods when rates jumped before settling back down.
This is another one of those moments, and it helps to keep that in mind.
When there’s economic uncertainty or major global events unfolding, mortgage rates often respond quickly. As Investopedia explains:
“Mortgage rates don’t move in isolation. When global events inject uncertainty into financial markets . . . that can ripple through to borrowing . . . mortgage costs can respond quickly to geopolitical developments. As long as uncertainty remains elevated, rate swings may continue.”
That’s exactly why trying to predict the perfect time to buy usually doesn’t pay off. Rates can change fast, and waiting for the market to cooperate may not give you the outcome you want.
Focus on What You Can Control
You may not be able to influence the market, but you can take steps put yourself in a better position as a buyer. If your goal is to get the best mortgage rate possible, these are the areas that matter most.
Your Credit Score
Your credit score is one of the biggest factors that affects the rate you qualify for. In many cases, even a modest improvement in your score can lead to better loan terms and a lower monthly payment.
As Bankrate explains:
“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for.”
That’s why it’s worth taking steps to strengthen your credit before applying for a mortgage. Paying bills on time, reducing outstanding debt, and avoiding new credit inquiries can all help. If you’re not sure where your score stands or what improvements would make the biggest difference, a trusted loan officer can help you create a plan.
Your Loan Type
The type of mortgage you choose also affects your rate. There are many different types of loans, and each comes with different eligibility requirements, benefits, and pricing.
The Consumer Financial Protection Bureau (CFPB) explains:
“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”
This is why exploring your mortgage options is so important. A conventional loan may be the right fit for one buyer, while an FHA, USDA, or VA loan may offer better advantages for another. Comparing programs and speaking with more than one lender can help you understand which path makes the most sense for your financial situation.
Your Loan Term
The length of your loan term matters, too. Most lenders offer 15-year, 20-year, and 30-year mortgage options, and the term you choose can affect both your interest rate and your monthly payment.
Freddie Mac explains it this way:
“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”
A shorter loan term may come with a lower interest rate, but the monthly payment is often higher. A longer term may give you more flexibility in your monthly budget, even if you pay more interest over time. The right choice depends on your goals, your budget, and how long you plan to stay in the home.
Conclusion
If you’re in the market for a home right now, the best strategy is not to focus on trying to predict where mortgage rates will go next.
Instead, focus on what you can control. Improve your credit score, explore different loan types, and choose a loan term that fits your needs. Most importantly, work with a trusted lender who can guide you through your options. If you need help connecting with trustworthy lender, reach out to us today.
Mortgage rates may be out of your hands, but the steps you take to prepare are not. And when you focus on what you can change, you give yourself a much better chance to move forward with confidence.
Mortgage Rates Just Hit a 3-Year Low. Does It Matter in 2026?
If you’ve been watching mortgage rates and waiting for a “better time” to buy, here’s your chance. Rates just dipped below 6% for the first time in more than three years. Even modest rate movement can change what you can afford, how competitive you can be, and whether buying feels realistic again, especially if last year’s higher rates pushed you to the sidelines.
With rates finally easing up into 2026, here’s a fresh take on why lower mortgage rates are still a big deal, plus what to do next if you’re thinking about making a move.
Why Mortgage Rates Impact More Than Just Interest
A mortgage rate isn’t just a number on a lender’s website. It shapes the entire homebuying experience because it affects:
- Your monthly payment
- How much home you can qualify for
- Your comfort level with your budget
- How competitive your offer can be
When rates jump, affordability tightens fast. That’s why many buyers (especially first-time homebuyers) feel the pinch first. When rates ease, the reverse happens: budgets get a little more breathing room, and choices open up.
The “One-Point” Difference That Changes the Math
One of the easiest ways to understand why rate declines matter is to look at a simple example.
When rates are closer to 7%, monthly payments rise sharply. When rates move closer to 6% (or below), payments can drop meaningfully. On a typical loan amount, that can translate into hundreds of dollars per month in savings compared to the higher-rate environment.
That difference can help you:
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Stretch your budget without stretching your lifestyle
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Consider more homes in a neighborhood you actually want
-
Keep cash available for repairs, furnishing, or future goals
In practical terms, the change isn’t just “cheaper interest.” It can be the difference between compromising on your wish list and finding a home that fits.
What Lower Rates Can Unlock for Buyers
When borrowing costs come down, three things usually happen for homebuyers:
1) Lower monthly payments
A lower rate can reduce the monthly principal-and-interest payment, which helps many buyers feel more confident about moving forward.
2) More buying power
When the payment drops, you may qualify for more home at the same monthly budget. That can mean a better location, an extra bedroom, or a property that needs fewer updates.
3) Stronger offers without overextending
More budget flexibility can help you compete without taking on a payment that makes you uncomfortable. That matters in markets where inventory is still tight and desirable homes move quickly.
Why This Can Bring More Buyers Off the Sidelines
Rate changes don’t only affect you. They affect everyone who has been waiting, too.
Industry research suggests that when rates sit around certain thresholds, millions more households can afford a median-priced home. In fact, research from the National Association of Realtors (NAR) points to 5.5 million additional households being able to afford the median-priced home when rates are at 6% or below, and it estimates roughly 550,000 of those households could buy within the next 12 to 18 months.
That matters because it signals something important: pent-up demand can return quickly when affordability improves.
If you’re home-searching now (or preparing to), you may be able to act before competition fully ramps back up.
A Quick Reality Check: Rates Aren’t the Only Factor
Lower rates help, but they don’t magically make every home affordable. Your true monthly cost depends on several moving pieces, including:
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Home price
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Local inventory and competition
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Property taxes
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Homeowners insurance (which can vary widely by state and ZIP code)
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HOA dues
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Your down payment and credit profile
That’s why the smartest next step isn’t guessing. It’s running real numbers to figure out what “affordable” looks like for you.
What To Do Next If You’re Considering Buying
If you’ve been waiting for rates to improve, here’s a simple, practical plan:
-
Get pre-approved (not just pre-qualified).
Pre-approval gives you a clearer budget and shows sellers you’re serious. -
Calculate your comfortable payment range.
Decide what fits your life, not just what a lender says you can qualify for. -
Compare scenarios with your lender.
Ask for payment examples at different price points, down payments, and rate options. -
Watch inventory in your target neighborhoods.
The best “deal” is the home that works for your needs and your budget.
Conclusion
Mortgage rates easing from last year’s highs isn’t just an attractive headline. For many buyers, it can be the shift that turns “maybe someday” into “this could actually work.”
If you paused your search when rates were higher, it’s worth revisiting your numbers now. A quick conversation with a trusted lender can show what today’s rate environment means for your payment, your buying power, and your options.
If you’re thinking of buying, or need help finding a lender, reach out to us today. We can connect you with local agents and lenders to make your journey as simple as possible.
CENTURY 21 Affiliated Announces Strategic Partnership with CMG Financial and Welcomes Greg Harkleroad as Joint Venture Division Sales Manager
Madison, WI – June 26, 2025 – CENTURY 21 Affiliated is proud to announce a new strategic partnership with CMG Financial, a top five privately held mortgage lender in the U.S., and the appointment of Greg Harkleroad (NMLS ID# 427611) as the Joint Venture Division Sales Manager to lead this exciting collaboration.
This partnership represents our continued commitment to delivering a seamless and exceptional home-buying experience for our clients across the Midwest and West Coast. With CMG’s innovative lending platform and long-standing reputation for excellence, combined with CENTURY 21 Affiliated’s position as a leading real estate franchise, we are poised to provide unmatched service and support to our buyers and agents.
“We are thrilled to announce our relationship with CMG Financial,” said Dan Kruse, CEO of CENTURY 21 Affiliated. “After extensively researching mortgage partners, we found CMG to be best-in-class when it comes to technology, customer experience, and agent support. By aligning with a lender of their caliber, we are confident this partnership will significantly elevate the home-buying journey for our clients.”
At the helm of this new joint venture is Greg Harkleroad, who brings nearly 40 years of mortgage experience and a proven track record of leadership, team building, and business growth. His passion for helping individuals achieve homeownership and his commitment to Realtor collaboration make him the ideal leader for this initiative.
“Greg brings decades of mortgage expertise to the venture,” said Sam Bell, President of Brokerage, CENTURY 21 Affiliated. “He has built numerous winning teams and is dedicated to supporting our agents and buyers at every step of the home financing process. We are excited to have him onboard.”
Greg’s approach to leadership centers around strategic hiring, coaching, and fostering strong relationships with real estate professionals to ensure a purchase-focused, service-driven mortgage experience.
“A strong Realtor-lender partnership is the foundation for delivering exceptional service,” said Harkleroad. “I’m excited to collaborate with CENTURY 21 Affiliated to bring that vision to life.”
With this partnership, CENTURY 21 Affiliated continues to prioritize innovation, support, and growth across its markets in Wisconsin, Michigan, and Southern California, offering agents and clients access to an experienced lending team, in-house technology, and personalized mortgage solutions.
For more information, please contact Greg Harkleroad at gregh@cmgfi.com or (513) 617-4407.
About CMG Financial
CMG Financial is a well-capitalized mortgage lender founded in 1993 by Christopher M. George, a former Mortgage Bankers Association Chairman. CMG makes its products and services available to the market through three distinct origination channels: retail lending, wholesale lending, and correspondent lending. CMG also operates eight joint venture companies with builder & realtor partners, holds an impressive MSR/servicing portfolio, and serves the capital markets of fixed income trading & sales through CMG Securities. CMG currently operates in all states, including District of Columbia, and holds approvals with FNMA, FHLMC, and GNMA. The company is consistently recognized as a top-producing lender and top mortgage employer, and it prides itself on helping clients achieve the dream of homeownership through product innovation and streamlined servicing.
About CENTURY 21 Affiliated Real Estate LLC
CENTURY 21 Affiliated is a member of multiple listings services in California, Illinois, Michigan, Minnesota, and Wisconsin with over 1,400 sales professionals and 60+ offices. CENTURY 21 Affiliated also specializes in worldwide relocation. At CENTURY 21 Affiliated, the customer comes first. The complete commitment to this philosophy is what has made CENTURY 21 Affiliated such a powerful force in the real estate industry. CENTURY 21 Affiliated has been ranked the number one CENTURY 21® franchise in the world for eleven years in a row. Visit C21Affiliated.com to learn more.
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Adjustable-Rate Mortgages on the Rise: Should You Jump In?
If you’re in the market for a house, you’re probably not encouraged by today’s mortgage rates. Elevated rates and rising home prices have many homebuyers starting to explore other financing options that make more sense. One type of loan gaining popularity is adjustable-rate mortgages (ARMs).
If you remember the 2008 market crash, you may be wary of new types of loans. It’s wise to be cautious, but there’s no need to worry. Today’s ARMs much safer and stricter than the ones you may remember from 2008.
During that time, some buyers held loans they couldn’t afford once their rate adjusted. Today, lenders are more careful, and determine whether you can afford an increased rate before the loan is ever offered. This time, ARMs are returning thanks to creative buyers looking for affordable ways to buy a home..
According to recent data from the Mortgage Bankers Association (MBA), more buyers are using ARMs to buy this year.
How Does an Adjustable-Rate Mortgage Work?
If you’ve never heard of ARMs before, you may be wondering what they are, and if they’re right for you. Here’s how Business Insider explains the main difference between a traditional fixed-rate mortgage and an adjustable-rate mortgage:
“With a fixed-rate mortgage, your interest rate remains the same for the entire time you have the loan. This keeps your monthly payment the same for years . . . adjustable-rate mortgages work differently. You’ll start off with the same rate for a few years, but after that, your rate can change periodically. This means that if average rates have gone up, your mortgage payment will increase. If they’ve gone down, your payment will decrease.”
Taxes or homeowner’s insurance can still influence a fixed-rate loan, but your baseline mortgage payment typically changes very little. Meanwhile, adjustable-rate mortgages can potentially change drastically in either direction after your initial payment period ends. Depending on your situation and anticipated market trends, this could either work for you, or be far too risky.
Pros and Cons of Adjustable-Rate Mortgages
With ARMs on the rise in 2025, it’s clear that more buyers are finding them appealing. Under the right conditions, they may offer attractive upsides, like a lower initial rate. According to Business Insider again:
“Because ARM rates are typically lower than fixed mortgage rates, they can help buyers find affordability when rates are high. With a lower ARM rate, you can get a smaller monthly payment or afford more house than you could with a fixed-rate loan.”
Remember that if you have an ARM, your rate will change over time. As Barron’s explains, they can potentially cost you more in the long run:
“Adjustable-rate loans offer a lower initial rate, but recalculate after a period. That is a plus for borrowers if rates come down in the future, or if a borrower sells before the fixed period ends, but can lead to higher costs if they hold on to their home and rates go up.”
While the upfront savings can be helpful now, consider what could happen if your initial rate ends before you move. Even though rates are projected to ease a bit over the next couple years, nothing is ever guaranteed. Before you choose an ARM, talk with your lender and financial advisor about all your options, and the potential risks.
Conclusion
For certain buyers, adjustable-rate mortgages can offer some big advantages, but this won’t be true for everyone. Understand how they work and whether their pros and cons make sense for you financially. Always talk to a trusted lender and a financial advisor before making entering into a new mortgage.
Need help connecting with a trustworthy lender in your area? Reach out to us for help today.
Foreclosures Rose in Q1 2025 – Is It a Warning Sign?
With everyday costs seemingly rising across the board, the state of the housing market is a natural concern. When basic living expenses rise, even critical financial responsibilities like mortgage payments start to slip, leading to increased foreclosures. Unsurprisingly, new data shows filings for foreclosures rose in Q1 2025, stirring worries about another housing crash like in 2008.
But as it turns out, there’s less cause for worry than you might think. When contextualized correctly, it’s clear these new number don’t point to a repeat of the last big housing crash.
The 2008 Market Versus 2025
The latest quarterly report from ATTOM shows that foreclosures did rise in Q1 2025, which is concerning at first glance. However, foreclosure filings were still lower than the normal historical average, and far below the levels seen in 2008. When plotted visually, it’s easy to see the huge difference between 2008 and 2025.
Compare the foreclosure filings in Q1 2025 to the years surrounding the 2008 crash on the graph below. Even in the years preceding and following the 2008 crash, foreclosures were dramatically higher than what we’re seeing now.
Back in 2008, lenders were approving loans using much riskier practices, saddling many homeowners with mortgages they couldn’t afford. This flooded the market with distressed properties, surplus housing inventory, and free-falling home prices that collectively caused the crash.
In the years that followed, lending standards became much stricter and stronger to prevent such a crash from happening again. Today, most homeowners are in a much better financial position, and foreclosures have stabilized as a result.
The graph may appear to show foreclosures ramping up since the lows of 2020 and 2021, but this is deceiving. Foreclosures during those years were unusually low thanks to a moratorium designed to help millions of homeowners through the pandemic. That moratorium has since ended, which has caused foreclosure filings to return to the more normal levels we see now.
Compared to pre-pandemic years like 2017-2019, foreclosures overall are actually relatively down from what’s considered normal. So while foreclosures rose in Q1 2025, this doesn’t point to a troubling surge in the market.
Why Foreclosures Haven’t Surged in 2025
Another reassuring difference in today’s real estate market is the power of increased homeowner equity. As home prices have exploded over these past few years, homeowners have enjoyed a welcome boost to their wealth. According to Rob Barber, CEO at ATTOM:
“While levels remain below historical averages, the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges. However, strong home equity positions in many markets continue to help buffer against a more significant spike . . .”
In short, if a homeowner can’t make their mortgage payments, they may be able to sell their home to avoid foreclosure. During 2008, many people owed more than their homes were worth and had no choice but to foreclose. Today, most homeowners have much stronger equity that protects them from being forced into foreclosing. As Rick Sharga, Founder and CEO of CJ Patrick Company, recently explained in a Forbes article:
“ . . . a significant factor contributing to today’s comparatively low levels of foreclosure activity is that homeowners—including those in foreclosure—possess an unprecedented amount of home equity.”
Conclusion
It’s true that foreclosures rose in Q1 2025, but they’re nowhere near the levels seen during the 2008 crash. Even as home prices continue rising, strong equity is protecting existing homeowners and bolstering their wealth. This doesn’t discount the struggles some homeowners are facing, but it’s a reassuring fact for the market at large.
If you’re a homeowner facing foreclosure, ask your mortgage provider about what options are available to you. Are you a first time buyer eager to build your equity? Contact us today for the info you need to get started.
Should You Buy a Home This Spring or Wait for Lower Prices?
You’re probably familiar with the saying “The best time to plant a tree was yesterday, but the next best time is today.” It’s a valuable lesson about future planning and investment that, surprisingly, applies to the decision to buy a home too.
Even though buying a home is a major financial expense, it’s also a major investment that grows over time. As the price of your home increases over time, the value of the equity you’ve built grows with it. And while waiting for prices to drop may be an attractive option, trying to time the market rarely works.
But here’s something to consider: the longer you wait to buy a home, the more your patience could cost you. Let’s explain why.
Home Prices Are Expected To Continue Climbing
Each quarter, over 100 housing market experts respond to Fannie Mae‘s Home Price Expectations Survey (HPES). Consistently, the survey results show experts agreeing that home prices will continue to rise through 2029 or even longer.
Sharp price increases may be behind us, but experts predict steadier, healthier increases of 3-4% per year moving forward. This rate of increase will vary by market from year to year, but it’s much closer to normal. Reliable growth is a promising sign for hopeful buyers, and the housing market at large, as the graph below demonstrates.
Even in markets experiencing slower price growth or short-term decreases, the steady gains of homeownership eventually win in time. After all, a growing, long-term financial investment will always beat a one-time discount.
Here are the main points to remember:
- Home prices will be higher next year. Experts don’t expect home prices to fall any time soon, at least at the national level.
- Waiting for a perfect mortgage rate or price drops is a gamble. With only slight dips in mortgage rates expected in the near future, price increase could outpace any potential mortgage savings. Unless home price growth is slow or mortgage rates are low in your area, waiting will likely be more expensive.
- Buying early means building more equity. When you invest in homeownership early, your equity and appreciating home value reward you in the long run.
The Costs of Waiting To Buy
To demonstrate how these theories play out in real-world numbers, here’s a typical example. If you were to buy a $400,000 house in 2025, it could gain almost $80,000 in value by 2030. The graph below demonstrates how this value appreciates year by year based on the expert data we mentioned earlier.
This can be a considerable difference in your future wealth and why buyers who invest early are often glad they did. When it comes to building wealth through long-term investment, time in the market matters.
The question to consider isn’t “Should I wait to buy?” It’s really “Can I afford to buy now?” Just like planting a tree, making short-term sacrifices to buy a home will eventually pay off in the long-term.
Between rising prices and stubborn mortgage rates, today’s housing market is challenging, but achieving homeownership is far from impossible. Exploring different neighborhoods, seeking alternative financing options, or applying for down payment assistance programs can all make a critical difference.
What’s most important is acting decisively when you’re able to, instead of waiting for a perfect opportunity that never comes.
Conclusion
If you’re interested in buying but still undecided, take the time you need to make the right choice. But, remember that realizing an investment takes time, and the sooner you make one, the sooner you’ll be rewarded.
If you’re curious about what’s happening with prices in our local area, then reach out to us. Even if you’re not ready to buy, an expert local agent can fill you in with the info you need.
It’s Tax Day – Here’s How a Refund Can Help You Save For a Home
If you’ve been planning to buy a house, you know how hard it can be to save for a home. What you might not know is that your tax return can be a helpful boost to your savings and budget. According to a recent post by Freddie Mac:
“ . . . your tax refund from the IRS can be a useful supplement to your homebuying budget.”
So if you’re planning to get a tax refund this year, consider the difference that extra funding can make. A refund can help you pay for the upfront costs of homebuying, like a down payment or closing costs. And, according to the IRS, your tax refund may even help you out this year more than ever.
How a Tax Return Can Help You Buy a Home in 2025
Recent data from the Internal Revenue Service (IRS) has found that the average individual’s refund is 3.9% higher this year. And while that’s not a huge increase, it can make a big difference if you’ve been struggling to save. The graphic below visualizes the new IRS data, comparing the average tax return in March 2024 to March 2025.
Your own personal tax refund will likely vary, but any financial boost helps when you’re saving for a home. According to Freddie Mac, the following are several ways you can put your tax return to good use when homebuying:
- Saving for a down payment – A down payment on a home is often one of the biggest obstacles to homeownership that buyers face. Saving your tax refund for a down payment can be a smart way to make this major step easier. Keep in mind while a 20% down payment may be common, it’s not typically a hard requirement to buy.
- Paying for closing costs – Usually due at closing, closing costs include fees for services like the appraisal, title insurance, and underwriting of your loan. While these vary by state, they’re often between 2% and 6% of your home’s total final purchase price. As a much lower percentage of your home’s price, closing costs can be a great use of your yearly refund..
- Lowering your mortgage rate – Lenders sometimes give buyers the option to buy down their mortgage rate if they qualify. This allows buyers to pay an upfront fee to lower their initial mortgage rate, reducing monthly payments in the short-term. This option can be particularly helpful if interest rates and mortgage payments are a major homebuying hurdle you’re facing..
Financially speaking, this may be more complicated in practice, but there’s no need to do it all on your own. Working with an experienced, trustworthy real estate professional can simplify your financial planning, helping you reach the best decision possible. An agent who understands the homebuying process, your unique financial needs, and your personal goals can make all the difference.
Conclusion
If you’ve been saving for a home, you already know well that every penny counts. Your tax return probably won’t be the final financial boost you need, but there are ways to use it effectively. Planning and identifying how to best spend that money can give you a real, meaningful step toward buying your home.
Are you eager to buy a home but having trouble making things work? Contact us today. We can connect you with local lenders and agents to help make your dream of homeownership a reality.
Mortgage Rates Drop to the Lowest Point in 2025 So Far
If you’ve been holding off on buying a home for a lower mortgage rate, take another look at the market. Mortgage rates are trending downward, and they just hit their lowest point of the year so far.
According to a report from Freddie Mac, mortgage rates have been falling for seven straight weeks. The average weekly rate for a 30-year-fixed mortgage is now at the lowest level its been in 2025.
This may not sound significant on its own, but it outlines a remarkable trend. A drop in rates from over 7% to the mid-6’s can make all the difference when buying a home. What’s most significant is that experts previously predicted that rates wouldn’t fall this low until Q3 of this year.
Why Are Mortgage Rates Dropping?
According to Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), ongoing economic uncertainty is a driving force in pushing rates lower:
“Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024.”
The timing of this rate drop is great for buyers moving into the Spring 2025 market. But remember that mortgage rates can change quickly, and always expect some volatility in markets driven by uncertainty. With that said, this small window of rates dropping into prime buying season might be exactly wait you’ve waited for.
What Falling Mortgage Rates Mean for Your Buying Power
Even a small reduction in your mortgage rate can make a huge difference in your monthly housing payment. The chart below shows what a monthly payment (principal and interest) would look like on a $400K home loan if you purchased a house when rates were 7.04% back in mid-January (this year’s mortgage rate high). The right side shows what it could look like if you buy a home now at current rates.
In just the past few weeks, the expected payment on a $400K loan has come down by over $100 per month. That’s a significant savings that can make a world of difference when deciding to buy a house.
Recent economic shifts have driven rates down faster than expected, and that’s great news. But remember that this could change at any time in the coming days and months for better or worse. So if you’re waiting for rates to fall further before you buy, think hard about the current window of opportunity before making a decision.
Conclusion
Mortgage rates have dipped to their lowest point in 2025 so far. This grants buyers a great position moving into the spring buying season, especially for those who have been waiting. The unpredictability of the market and larger economy mean volatility, so get expert advice and consider before making a decision.
FHA Home Loans in Wisconsin
If you’re in the market for a home in Wisconsin, you may have heard of FHA loans, or Federal Housing Administration loans, as a financing option. These government-backed loans are a popular choice for first-time homebuyers and those with less-than-perfect credit. In this guide, we’ll break down everything you need to know about FHA loans in Wisconsin, along with benefits and requirements of state-specific programs that can help you achieve your dream of homeownership.
What are FHA Home Loans?
FHA loans are mortgages insured by the Federal Housing Administration (FHA) and are designed to make homeownership more accessible, especially for Americans who may not qualify for a traditional mortgage or other loans. This reduces the risk for lenders and allows them to offer lower down payments and more lenient credit requirements. This also makes FHA loans particularly appealing to first-time buyers or those with limited savings.
Here are a few ways that FHA loans stand out from other options:
- Low Down Payment: You can qualify with as little as 3.5% down if your credit score is 580 or higher, meaning that up to 96.5% of a home’s value can be borrowed through an FHA loan.
- Flexible Credit Requirements: FHA loans are more forgiving of lower credit scores compared to conventional loans. Borrowers with scores as low as 500 may still qualify with a 10% down payment.
- Competitive Interest Rates: Being backed by the federal government, FHA loans often have lower interest rates than conventional loans, making monthly payments more affordable.
- Mandatory Mortgage Insurance: FHA loans require both an upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium (MIP), which is paid monthly.
These are just a few ways FHA loans can help homebuyers overcome financial barriers and make homeownership a reality for more Americans. With lower credit score requirements and lower down payments, it’s an easier pathway to securing a loan and finally owning a house.
Current FHA Loan Interest Rates in Wisconsin
As of February 2025, the average interest rate for a 30-year fixed FHA loan in Wisconsin is 6.24%, with an APR of 6.92%. These rates are slightly lower than conventional loan rates, making FHA loans a more cost-effective option. However, rates vary depending on your credit score, the lender, and the loan type and length, so always explore your options and compare offers when possible.
FHA Loan Requirements in Wisconsin
To qualify for a FHA home loans in Wisconsin, several key criteria must be met to ensure that potential borrowers are financially stable and capable of repaying their loan. Most notably, applicants need to demonstrate a reliable employment history and income.
Here’s a summary of the main eligibility criteria:
- Credit Score: As of 2023, a minimum score of 580 is required for a 3.5% down payment. Scores between 500 and 579 require a 10% down payment.
- Debt-to-Income Ratio (DTI): Your total monthly debt, including the mortgage, should not exceed 43% of your income, though some lenders may allow up to 57% in certain cases.
- Employment and Income: You’ll need a steady employment history of at least two years and verifiable income.
- Primary Residence: The home must be your primary residence.
- Property Standards: The property must meet FHA’s minimum standards for safety and livability, as determined by an FHA-approved appraiser.
- Loan Limits: For 2025, the FHA loan limit for a single-family home in most Wisconsin counties is $524,225. In higher-cost areas like Pierce and St. Croix counties, the limit is $529,000.
By meeting these requirements, you better position yourself for loan approval. It can also simplify the loan process, making it smoother and preventing potential setbacks or delays.
Applying for an FHA Loan in Wisconsin
Applying for FHA home loans in Wisconsin is straightforward but involves several basic steps. Borrowers should start by researching and comparing various FHA-approved lenders to find the best loan terms and secure the best deal.
After selecting a lender, borrowers complete the FHA loan application process. This process may vary between lenders, but should follow the same general steps. Here’s an overview of the major stages involved:
- Find an FHA-Approved Lender: Choose a lender approved by the FHA. Most banks, credit unions, and mortgage companies offer FHA loans.
- Pre-Approval: Get pre-approved to determine your budget and show sellers you’re a serious buyer.
- Submit Your Application: Provide details about your income, employment, and the property you want to buy .
- Provide Documentation: Submit tax returns, pay stubs, bank statements, and other financial documents.
- Property Appraisal: The lender will order an appraisal to ensure the home meets FHA standards and is worth the loan amount.
- Underwriting: The lender reviews your application to ensure you meet all FHA requirements.
- Closing: Sign the final paperwork, pay closing costs, and officially become a homeowner.
Wisconsin-Specific Programs to Pair with FHA Loans
Certain areas in Wisconsin may offer programs that can make FHA loans even more affordable. These programs are most common in larger metropolitan areas like Madison and Milwaukee, but some are available statewide through the Wisconsin Housing and Economic Development Authority (WHEDA). Here are a few options to explore if you’re planning to buy a home in Wisconsin:
- WHEDA Down Payment Assistance: The Wisconsin Housing and Economic Development Authority (WHEDA) offers programs like the Easy Close DPA, which provides up to 6% of the home’s purchase price as a second mortgage. Another option is the Capital Access DPA, offering $7,500 with no interest or monthly payments
- City of Madison’s Home-Buy the American Dream Program: Provides up to $35,000 in down payment and closing cost assistance, deferred until the home is sold or refinanced.
- Milwaukee Down Payment Assistance: Offers forgivable grants of up to $7,000 for homes in designated areas, provided the buyer contributes at least $1,000 and lives in the home for five years.
- Local Assistance Programs: Many cities and counties in Wisconsin offer grants or zero-interest loans for first-time buyers. Check with your local housing authority for details.
Conclusion
FHA loans are an excellent choice for hopeful homebuyers, especially first-time buyers or those with limited savings. By combining the benefits of FHA loans with Wisconsin-specific programs like WHEDA’s down payment assistance, you can make your dream of homeownership a reality. Whether you’re buying in Milwaukee, Madison, or a smaller town, understanding the FHA loan process and available resources will help you make informed decisions and secure the best deal for your new home.
If you’re ready to take the next step, start by finding an FHA-approved lender and exploring the down payment assistance programs available in your area. With the right preparation, you’ll be well on your way to owning a home in the beautiful state of Wisconsin!
Ready to buy but not sure how to secure a loan? Reach out to us today for help finding a qualified lender that works for you.
2025 Housing Market Predictions: What Do the Experts Say?
Wondering how the housing market is expected to change in 2025? And more specifically, what it all means for you if you plan to buy or sell a home? As always, the best way to get that information is to consult the pros.
Experts are constantly refining their predictions in response to changes in the market and overall economy. Here’s the latest information on two key factors sure to influence the housing market in 2025: mortgage rates and home prices.
Will Mortgage Rates Come Down?
Mortgage rates remain one of the strongest factors influencing the market, and everyone is waiting for them to come down. The real question is: will they drop, and how quickly?
The good news is that mortgage rates are indeed projected to ease a bit in 2025, falling into the mid-6% range on average. But experts say not to expect a return to 3-4% mortgage rates, at least not this year. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%.”
Other experts agree with Yun’s 6% prediction. They’re forecasting rates could settle in the mid-to-low 6% range by the end of 2025 (see chart below):
But remember that the market can change quickly, and experts will revise their predictions as the new year continues. Market forecasts are based on what experts know right now. And since everything from inflation to economic drivers have an impact on where rates go from here, some ups and downs are still very likely. So, don’t get caught up in the most exact numbers and try to time the market. Instead, focus on the overall industry trend and on what you can actually control.
A trusted lender and a local agent partner will make sure you’ve always got the latest data and the context on what it really means for you and your financial goals. With their help, you’ll see that even a small decline in mortgage rates can help bring down your future mortgage payment when you decide to buy.
Will Home Prices Fall?
The short answer? Not likely. While mortgage rates are expected to ease, home prices are projected to keep climbing in most areas – but at a slower, more normal pace. If you average the expert forecasts together, you’ll see prices are expected to go up roughly 3% next year, with most of them hitting somewhere in the 3 to 4% range. But this is a much more typical and sustainable rise in prices compared to (see graph below):
If you’re thinking of buying in 2025, don’t expect a sudden drop to score you a big deal. That may sound disappointing if you’re hoping for home prices to come down, but this means you won’t have to deal with the steep increases we saw in recent years. You’ll also likely see any home you do buy go up in value after you get the keys in hand, and this can turn into a great investment over time.
Like many buyers, you might be wondering how it’s even possible that home prices are still rising. The answer all comes down to supply and demand. Even though there are more homes for sale now than there were in 2024, it’s still not enough to keep up with all the active home buyers on the market. As Redfin explains:
“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”
Keep in mind that the housing market is hyper-local, so this will vary by area. Some markets will see even higher prices, and some may see prices level off or even dip if inventory is up in that area. In most places though, prices will continue to rise as they usually do.
If you want to find out what’s happening in your local housing market, it always helps to lean on an agent who can explain the latest trends and what they mean for your homeownership plans.
Conclusion
The housing market is always changing, and 2025 will be no different. With mortgage rates likely to ease down to the 6% range and prices rising at a slower, more sustainable pace, it could be a great time to finally buy or sell. As always, it’s all about staying informed and making a plan that works for you.
If you’re in the market to buy or sell a home in 2025, let’s connect you with a local agent who can give expert advice on what’s happening in your area and make sure your next move is a smart one.
