Brought to you by Steven Batista of Legacy Mortgage Group Inc.

In This Issue:

• Will Rates Go Down in 2026?
• FHFA Announces New Conforming Loan Limits
• Fed Decision Affects Short-Term Options

Will Rates Go Down in 2026?

WILL RATES GO DOWN IN 2026?  Rates have been somewhat consistent over the last two months, and most experts agree that rates will not move significantly in 2026. Fannie Mae, Freddie Mac, and MBA are all predicting 30-year fixed rates around the low-to-mid 6% range. Rather than waiting for “the perfect rate,” borrowers may want to improve credit scores and decrease debt-to-income ratios (DTI) to get the best rates possible, and explore the many loan programs that are available now.

FHFA Announces New Conforming Loan Limits

 

The Federal Housing Finance Agency (FHFA) released updated conforming loan limit (CLL) values for 2026. The new limits for loans backed by Fannie Mae or Freddie Mac have risen 3.25%, up to $832,750 for one-unit properties in most counties. The limit in high-cost areas (such as New York City, Los Angeles, Alaska, and Hawaii) is up to $1,249,125. Loan limits have also gone up for two-, three-, and four-unit properties.

Here’s a map that shows the 2026 conforming loan limit ranges for every county in the US.

This is great news for potential home buyers who may now qualify for a conforming loan, rather than a Jumbo loan. Conforming loans require as little as 3% down, while Jumbo loans require a much higher down payment, a higher credit score, and additional cash reserves.

Likewise, this is good news for homeowners that currently have a Jumbo loan, but now may be able to refinance into a conforming loan. If the remaining loan balance is below the new conforming loan limit range, it could be worth looking into. The qualification process is more straightforward with conforming loans and may come with lower interest rates.

Fed Decision Affects Short-Term Options

 

The Federal Reserve dropped the benchmark lending rate a quarter point last month. This brings the Fed rate down to 3.5% to 3.75%. While this does not directly affect long-term mortgage rates, some shorter-term mortgage options may be worth looking into now.

• Lower Introductory Rates on ARMs
  We see lower introductory rates on Adjustable-Rate mortgages (ARMs) since the recent Fed decision. Introductory rates on ARMs are typically set for 5, 7, or 10 years.
  
  Homebuyers often consider this type of loan to reduce monthly payments in the initial phase of the loan. This works well for borrowers who do not intend to stay in the home for an extended amount of time, or anticipate a future increase in income. Another option is to refinance before the loan resets.
  
  
• Pay Off Debt at a Lower Rate
  Homeowners with built-up equity may want to consider paying off high-interest credit card debt at a much lower rate with a Home Equity Line of Credit (HELOC) now.
  
  A HELOC provides flexible access to funds for any purpose. Whether you want to consolidate debt, pay for home improvements, or start a new business, we’re here to help you make educated decisions about managing your mortgage.

If you – or your friends and family – need an expert that’s ready to help you meet your 2026 mortgage goals, please give me a call!