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Fannie Mae and Freddie Mac Ease Some Mortgage Rules During Government Shutdown

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Government-backed mortgage giants Fannie Mae and Freddie Mac are temporarily relaxing certain requirements for lenders in an effort to minimize disruptions in loan approvals during the federal government shutdown.

In guidance issued on Wednesday, Fannie and Freddie laid out alternative procedures for mortgage lenders to follow if the shutdown hinders their ability to gather standard employment or income verification, as well as temporary measures for flood insurance verification.

"We appreciate the understanding and consideration that Seller/Servicers extend to Borrowers coping with the hardships imposed by the shutdown," wrote Freddie Mac senior vice president of single-family seller engagement Kevin Kauffman in a note to lenders.

Fannie and Freddie do not issue mortgages themselves, but rather set rules for "conforming" mortgages issued by private lenders, which are then eligible for purchase and securitization by Fannie and Freddie.

Although Fannie and Freddie are effectively owned by the U.S. Treasury, their operations are not affected by the government shutdown, because they are self-funded and do not rely on congressional appropriations to pay staffers.

The new guidelines for mortgage lenders are effective immediately and will expire automatically when the federal government resumes full operations.

Temporary rules for flood insurance

Until Congress passes a new spending bill, the National Flood Insurance Program (NFIP) is unable to write new policies, although existing policies remain in force and the program will continue to pay claims

NFIP provides more than 90% of flood insurance policies sold across the country, and mortgage lenders typically require flood insurance for homes that are located in areas at risk of flooding.

The new guidance issued by Freddie Mac still requires flood insurance for at-risk homes, but will allow mortgage borrowers to submit proof that they have applied for an NFIP policy, even if the policy hasn't been issued yet.

When the shutdown ends, lenders will be required to verify that the borrower actually obtained flood coverage that meets standard requirements.

Waivers for federal employees

The new guidance states that for federal employees, lenders can waive verification of employment if they document the steps taken to verify employment and certify that the shutdown prevented them from obtaining verification.

For federal workers, the temporary rules also waive the requirement that their pay stubs be dated no earlier than 30 days before the initial loan application.

Federal workers on furlough are still eligible for mortgage approval, provided the lender has been able to obtain all required income documentation before delivery of the loan.

If the shutdown extends beyond Nov. 3, federal employees may have to provide proof of at least two months of savings reserves to compensate for the risk of income interruptions.

To assist borrowers whose employment is affected by the shutdown, mortgage lenders can also offer forbearance under standard procedures that are already in place.

IRS income verification rules relaxed

During past government shutdowns, some mortgage lenders had difficulty obtaining income verifications from the IRS due to staffing shortages.

That isn't expected to be an issue this time due to new automated procedures at the IRS and rule changes making the income verification service exempt during a lapse in appropriations.

But just in case issues arise, Fannie Mae says that as long as borrowers complete and sign an IRS

Request for Transcript of Tax Return (Form 4506-C), the lender will not be required to obtain a full tax transcript before closing.

However, lenders are still required to obtain certain IRS documents if the most recent year’s tax return is not available, such as proof of e-filing or an IRS response confirming that no tax transcript is available.

Lenders will have 90 days postclosing to get full tax transcripts from the IRS, which should allow most conventional loan approvals to proceed smoothly even if there are delays in processing requests at the IRS.

Read more at Realtor.com

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Why Experts Say Mortgage Rates Should Ease Over the Next Year

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You want mortgage rates to fall – and they’ve started to. But is it going to last? And how low will they go?

Experts say there’s room for rates to come down even more over the next year. And one of the leading indicators to watch is the 10-year treasury yield. Here’s why.

The Link Between Mortgage Rates and the 10-Year Treasury Yield

For over 50 years, the 30-year fixed mortgage rate has closely followed the movement of the 10-year treasury yield, which is a widely watched benchmark for long-term interest rates.

When the treasury yield climbs, mortgage rates tend to follow. And when the yield falls, mortgage rates typically come down.

It’s been a predictable pattern for over 50 years. So predictable, that there’s a number experts consider normal for the gap between the two. It’s known as the spread, and it usually averages about 1.76 percentage points, or what you sometimes hear as 176 basis points.

The Spread Is Shrinking

Over the past couple of years, though, that spread has been much wider than normal. Why? Think of the spread as a measure of fear in the market. When there’s lingering uncertainty in the economy, the gap widens beyond its usual norm. That’s one of the reasons why mortgage rates have been unusually high over the past few years.

But here’s a sign for optimism. Even though there’s still some lingering uncertainty related to the economy, that spread is starting to shrink as the path forward is becoming clearer.

And that opens the door for mortgage rates to come down even more. As a recent article from Redfin explains:

“A lower mortgage spread equals lower mortgage rates. If the spread continues to decline, mortgage rates could fall more than they already have.”

The 10-Year Treasury Yield Is Expected To Decline

It’s not just the spread, though. The 10-year treasury yield itself is also forecast to come down in the months ahead. So, when you combine a lower yield with a narrowing spread, you have two key forces potentially pushing mortgage rates down going into next year.

This long-term relationship is a big reason why you see experts currently projecting mortgage rates will ease, with a fringe possibility they’ll hit the upper 5s toward the end of next year.

Here’s how it works. Take the 10-year treasury yield, which is sitting at about 4.09% at the time this article is being written, and then add the average spread of 1.76%. From there, you’d expect mortgage rates to be around 5.85%.

But remember, all of that can change as the economy shifts. And know for certain that there will be ups and downs along the way.

How these dynamics play out will depend on where the economy, the job market, inflation, and more go from here. But the 2026 outlook is currently expected to be a gradual mortgage rate decline. And as of now, things are starting to move in the right direction.

Bottom Line

Keeping up with all of these shifts can feel overwhelming. That’s why having an experienced agent or lender on your side matters. They’ll do the heavy lifting for you.

If you want real-time updates on mortgage rates, reach out to a trusted agent or lender who can keep you in the loop and help you plan your next move.

Read more at Keeping Current Matters

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Greater Denver Area Real Estate Market Report from September 2025

 
 

September always brings a natural shift in the Denver housing market-not just because of the calendar, but because life changes pace, according to the Denver Metro Association of Realtors.

Summer vacations wind down, kids head back to school and buyers and sellers alike settle into new routines and motivation. This year, the seasonal rhythm aligned with a remarkably steady market. Sales, prices and overall tone through 2025 have followed a consistent path. Still, the close of Q3 signals a moment to recalibrate; interest rates, which have defined so much of the year, are showing early signs of easing.

The seasonality and economic conditions of our market today are micro adjustments compared to a market where we see large swings in demand and prices, as we did during 2020 through 2022. These variations in the market seem uneventful compared to our lingering expectations of the previous market cycle, but they are no less meaningful. The subtle adjustments show a nuanced buyer and a nuanced seller, requiring tenacity, trust and expertise to make the perfect match.

Options continue for buyers; new listings in September increased slightly for both attached and detached homes, by 12.74 percent and 3.87 percent, respectively. The active inventory at month's end was up 17.62 percent year-over-year and 70.17 percent from 2022. This increase in active listings is a result of lower buyer demand, as the total number of new listings that have entered the market through the end of September is up 10.46 percent year-over-year and down 1.75 percent compared to 2022.

Buyers are increasingly opting for detached homes over attached ones. The sales volume for detached homes in September was up 6.55 percent year-over-year, while the attached sales volume decreased by 16.78 percent. Attached homes continue to see challenges in the increased costs of insurance and community maintenance, resulting in higher-than-historically-typical community dues.

Although the market has seen a large number of listing price reductions, the detached home market saw only a small decline in the median sale price in September, 1.79 percent month-over-month, while attached homes experienced a slight increase of 1.17 percent. Year-over-year, however, the median sale price for detached homes increased by 1.33 percent, while the median sale price for attached homes decreased by 3.35 percent. The number of days in the MLS has increased from 30 in August to 35 in September, representing a 16.67 percent increase and a 40.00 percent increase from September 2024. Pricing strategy is the most crucial element for sellers in this market, and as days in the MLS in-crease, determining when to wait for the right buyer and when it's time for a price reduction is a delicate balance.

The stress on buyer demand was eased slightly in September with a 25-basis-point reduction in the federal funds rate.

The anticipation of the rate cut brought the lowest mortgage interest rates we have seen so far in 2025, but it did not prompt a rush of buyers into the market. Whether they are holding out for additional rate cuts or feeling the uncertainty of inflation and employment, buyers remain cautious.

Learn more about the market from the Denver Metro Association of Realtors.

Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.

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Sellers in Top Buyer’s Markets Are Sweetening Deals With Discounts

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Sellers eager to offload their properties in inventory-rich, buyer-friendly markets are increasingly turning to price cuts as a way to attract shoppers—but mostly at certain price ranges.

Price cuts have emerged as the go-to strategy among sellers this year in the face of slowing housing market activity due to elevated mortgage interest rates, rising inflation, and general economic uncertainty, which are keeping many would-be buyers on the sidelines.

Looking at the national picture, in September, 19.9% of all for-sale homes across the U.S. had price reductions, up 1.2 percentage points year over year.

Regionally, the South and West led the way in the price reduction category, with 21.1% and 20.9% of listings, respectively, offering discounts, according to the latest monthly housing market trends report from Realtor.com®.

The Midwest was not too far behind with 19.2%, while the inventory-scarce, in-demand Northeast offered the fewest price cuts, at just 14%, meaning that only about 1 in 7 for-sale properties in the region came with a discount.

Price ranges drive price cuts

Although price reductions continued to be a widespread selling tactic last month, Realtor.com researchers found they were particularly concentrated in the $350,000 to $500,000 price range, suggesting that sellers in the lower-cost segment of the market were especially eager to make a deal.

On the other hand, reductions were least common among luxury home sellers.

Nationwide, over 20% of listings priced below $350,000 came with a price reduction, compared to just 13.3% of listings priced above $1 million.

"This is consistent with more motivated sellers at the bottom of the housing ladder, who need to sell in order to buy their next home, compared to patient or price-anchored sellers at the top," explains Realtor.com senior economist Jake Krimmel.

The divide between affordable and high-priced homes also mirrors regional trends, with expensive Northeastern markets proving most resistant to discounts due to robust buyer demand.

For example, in Portland, OR, the metro with the second-most price cuts in the U.S. in September (20.9%), reductions were most common in the sub-$350,000 tier of the local housing market. In that segment, roughly 34% of Portland's listings came with a price cut.

Homes ranging between $500,000 and $750,000 had the second-highest share of price cuts, at about 32%, followed by properties priced between $350,000 and $500,000, at 31.7%.

On the other side of the spectrum, just 23.6% of for-sale homes with an asking price of over $1 million offered price adjustments.

Located 3,000 miles to the east, costly Hartford, CT, in September had the second-lowest share of listed homes with price cuts, at just 11%.

Unlike in Portland, where buyer demand has been soft, price cuts in sought-after, undersupplied Hartford showed little variation across price tiers. In fact, they were slightly more common at the top of the market, with 11.7% of listings between $750,000 and $1 million offering reductions.

Discounts in 7 buyer's markets

In August, Realtor.com researchers identified seven metros that fell under the category of buyer's markets based on their housing supply.

The metric used to identify those markets represents how many months it would take for all of the listed homes to be sold at the current sales price.

The higher the months of supply, the slower the market—and the more negotiating power buyers have.

The rule of thumb is that it is a buyer’s market if supply is above six months.

Based on June housing data used in the analysis, only 7 of the top 50 U.S. metros had six or more months of supply: Miami; Austin, TX; Orlando, FL; New York City; Jacksonville, FL; Tampa, FL, and Riverside, CA.

"Even in buyer's markets, price cuts tend to be least common at the top of the market, meaning that home shoppers at middle or lower price tiers seem to be gaining more leverage in such markets than those shopping at the luxury end," notes Krimmel.

However, research shows that there is no universal pattern that fits neatly across markets.

Inventory growth slows, prices flatten

September saw housing inventory nationwide increase 17% from a year ago, the 23rd consecutive month of gains, but the pace of growth has been slowing since May, according to the latest monthly report.

The number of for-sale properties remained above the 1 million threshold for the fifth month in a row.

Supply levels continued to vary widely across regions, with the South and West surpassing pre-pandemic inventory benchmarks, while the Northeast and Midwest are still suffering from a scarcity of homes.

At the metro level, Washington, DC, and Las Vegas recorded the biggest year-over-year inventory gains, at 48.7% and 40.8%, respectively, mirroring regional trends.

New listings, which are a measure of sellers putting their homes on the market, fell 1.2% from September 2024 and 1.8% from August.

The typical for-sale home spent 62 days on the market waiting for a buyer in September—a full week longer than during the same period a year ago. This marks the 18th month in a row of homes taking longer to sell on an annual basis.

Notably, all four regions saw year-over-increases in days on the market, led by the West with an additional 10 days, followed by the South with eight days. In the Midwest, the typical home waited for a buyer an extra three days, while in the Northeast, a listing saw a delay of just one day.

Among the top 50 metros, homes lingered unsold the longest in Florida’s buyer-friendly Miami and Orlando, with 16 and 14 days, respectively.

The national median list price held steady at $425,000, same as a year ago, but it dropped 3.6% in the inventory-abundant West.

Read more at Realtor.com

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6 Things Real Estate Agents Say You Should Always Fix Before Selling Your Home

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Selling your home is a big move. It is not only a financial decision but also an emotional one. It may be hard to imagine that future buyers won't appreciate design features that you find charming, but the reality is that it’s a buyer’s positive first impressions that will sell your home fast. That’s why it's prudent to make repairs before listing your home, not after house hunters have seen a few warts.

According to real estate experts, targeted repairs can dramatically increase your chances of attracting buyers and securing a strong offer. These improvements can make your home shine and show potential buyers that it’s been well cared for over the years. Also, knocking these lower cost tasks off the punch list may make a buyer more forgiving of other issues that they may find along the road to securing a loan, finalizing inspection, and—ultimately—moving into their dream home. Real estate pros share the best advice they offer to their clients in this competitive market.

A Fresh Coat of Paint

One of the simplest and most transformative fixes is a fresh coat of paint. A cost-effective paint refresh in a neutral, bright white creates a blank canvas that allows buyers to imagine themselves in the space. “Apply a fresh coat of paint: This is the simplest way to reset a home," Amanda Valente, co-founder and COO of Renovation Sells. "Stick to light, buyer-friendly neutrals like beige or soft whites so rooms feel bigger and brighter.”

Light colors not only brighten rooms, but they also provide more versatility for staging furniture and photographs. In today’s digital-first real estate market, strategic pops of color should be in movable items like an accent throw or a fruit basket—items that buyers can easily remove to reimagine how they’d use the space if it were their own.

“While DIY renovations, like painting, can be tempting, hiring professionals ensures a clean and polished result that can make a big difference in how your home is perceived," Valente says. "It’s an investment that can pay off by attracting more serious buyers."

Fix the Lighting

Lighting sets the tone of a home. Poor or yellow lighting often makes rooms feel smaller or older than they really are. And while changing a light bulb or adding a new lampshade is simple enough, prospective buyers on a walk-through might not assume so.

Kori Sassower, founder and principal agent at The Kori Sassower Team in Westchester County, New York recommends starting with LED bulbs because they're “bright white and not a yellow light.” While you're at it, update fixtures for a more modern look, too. “For entry and dining chandeliers, you can get modern-looking ones that are inexpensive," Sassower says.

Remember, if a future buyer likes the house, they may want everything inside—including the fixtures. So if you’d planned on taking a chandelier or lamp with you to your new home, it’s probably best that it’s not on show for prospective buyers who might also fall in love with it.

If your light fixtures feel move-in ready, they may be a huge selling point, making them part of the deal.

Refresh Countertops

The kitchen is the heart of a home, and its condition often makes or breaks a buyer’s decision to make an offer—and the price of that offer. Countertops can play an outsized role in the calculations.

“Counters are the visual anchor of a kitchen,” says Valente. “If yours are scratched, worn, or outdated, swapping them out makes a huge impact. Quartz is a winning pick—it’s durable, easy to clean, and gives a natural stone look without the upkeep. Skip high-maintenance or loud patterns; broad buyer appeal wins.”

The same is true for countertops in the bathroom or laundry room. If they look dated, scratched, or simply out of sync with the rest of the home. It’s best to invest in a refresh before listing the home.

Update Cabinets

Much like countertops, cabinets are a modest investment that can pay off big. “Refresh your cabinets: This is one of the highest-ROI moves you can make,” Valente says. “Older wood tones date a space fast; a fresh coat of white, warm gray, or a soft neutral instantly feels open and current. Finish the look with new hardware—polished nickel, matte black, or antique brass all work and photograph beautifully.”

This fix allows homeowners to update the kitchen without the exorbitant cost of a full remodel. It’s best to avoid big rehabilitations for aesthetic purposes because the new buyer may not appreciate the change. In those cases, the upfront cost may not equate to a higher sale price.

Double Check Safety Equipment

Beyond cosmetic updates, safety features matter. Even if a buyer puts in an offer and you accept, most are required by their mortgage lender to perform an inspection. Buyers and inspectors alike want to know the home has been well-maintained and poses no hidden safety risks. Small repairs for little items can slow down closing, so it’s best to check these basics first. Fix loose banisters, install GFCI protection on electrical outlets near water (typically in the kitchen and sink areas), and replace the batteries in smoke and carbon monoxide detectors.

These repairs are not flashy, and they take no time to fix, so DIYing them early can make for smooth sailing after an offer.

Elevate Curb Appeal

A little curb appeal goes a long way in attracting buyers to step inside your home and make a competitive offer. But simple lawn care—mowing, weeding, trimming shrubs—creates an inviting atmosphere for potential buyers to take a chance on the interior.

Broken fences, dying bushes, and yellow grass make a home look unkempt. While a savvy buyer with imagination might see the house’s true value, they may be inclined to make a low-ball offer—assuming they would need to put money in after the sale to see the full potential of their purchase.

How Much Should You Budget for These Repairs?

Of course, one of the first questions homeowners ask is how much to budget for these updates. “I would budget around 10k for these repairs, the biggest expense being the painting of the interior of the home," Sassower suggests. "A local painter and electrician is who you will need to make the repairs. Don’t try to do this yourself unless you're a licensed painter or electrician. You want it to look like a professional job, so the buyers feel that the home has been well taken care of.”

Valente cautions against guessing on price. "Many people are unaware of costs, and end up overspending," she says. "Find a provider who can give you a true estimate, backed by real project data.”

Read more at Real Simple

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