Blog — First Rate Financial Group

14

Sep

Financial Reports

What’s Ahead For Mortgage Rates This Week – September 14th, 2026

While CPI data has come in within expectations for current inflation, inflation remains much higher than in previous years. The rate is holding steady at 2.4%, which is above the Federal Reserve’s 2.0% target.

There are sectors where cost has seen significant increase and has not been reflected in the CPI due to the more recent changes implemented by the Trump administration. Fuel costs, for example, have seen an upward year-over-year trend that has been exacerbated by the recent war in Iran.

The Fed Beige Book and balance sheet have also shown steady growth and an upward trend as of late. Despite inflation data running counter to this idea, there are still widespread expectations that rates will be cut again.

Consumer Price Index
Consumer prices increased 0.4% in August, while core CPI rose 0.3%. Annual inflation remained at 3.4%, with core inflation easing to 2.4%. While underlying inflation continues to move closer to the Federal Reserve’s 2% target, the monthly increase suggests that inflationary pressures remain persistent.

Producer Price Index
Producer prices increased 0.4% in August, while prices for goods rose 1.1% and services increased 0.1%. Producer prices were up 5.4% from a year ago, indicating continued wholesale inflation pressure. Core PPI, excluding food and energy, increased 0.2% for the month and 4.6% year over year. The stronger headline reading could make the Federal Reserve more cautious about future rate cuts, potentially putting upward pressure on mortgage rates.

Primary Mortgage Market Survey Index

15-Year FRM rates saw an increase of 0.05%, bringing the current rate to 6.09%.
30-Year FRM rates saw an increase of 0.05%, bringing the current rate to 6.76%.

MND Rate Index

30-Year FHA rates saw an increase of 0.24%, with current rate at 6.68%.
30-Year VA rates saw an increase of 0.24%, with current rate at 6.70%.

Jobless Claims
Initial Claims were reported to be 206,000 compared to the expected claims of 200,000. The previous week landed at 209,000.

What’s Ahead
FOMC is holding an economics projection meeting which should provide forward guidance on policy. Additionally, the Federal Reserve Interest Rate decision happening mid-week, making for a very light week.

11

Sep

By First Rate Financial Group

Mortgage Tips

How Mortgage Underwriting Looks at Your Financial Picture

Mortgage underwriting can seem mysterious when you are buying a home. You submit documents, answer questions, and sometimes receive requests for additional information without knowing exactly what is happening behind the scenes. Understanding the purpose of underwriting can make this stage of the mortgage process much less intimidating.

Underwriting Looks Beyond One Number
A mortgage decision is generally not based solely on your credit score or income. Underwriting evaluates multiple parts of your financial profile to determine whether the loan meets applicable lending requirements.
The exact criteria depend on the mortgage program and lender.

Income and Employment Are Reviewed
Lenders need to document qualifying income and may review employment history and the way you are compensated.

Salary, hourly wages, commissions, bonuses, self-employment income, and other income sources may have different documentation requirements.

Credit and Monthly Obligations Matter
Your credit history can provide information about how you have managed financial obligations. Underwriting may also consider debts such as auto loans, student loans, credit cards, and other required monthly payments. These obligations can affect the amount of mortgage debt you qualify to carry.

Assets May Need Documentation
Funds used for the down payment, closing costs, and applicable reserve requirements may need to be verified.

Large or unusual deposits can sometimes generate questions because the lender may need to document where the money originated. Before moving significant amounts of money between accounts during the mortgage process, consider discussing it with your mortgage professional.

The Property Is Part of the Equation
Underwriting is not only about the borrower. The property securing the mortgage must also satisfy requirements associated with the loan. An appraisal and other documentation may be used to evaluate aspects of the property and transaction.

Additional Questions Are Not Unusual
A request for another document does not automatically mean something is wrong. Underwriters may simply need additional information to complete the file.

Underwriting is ultimately about putting the pieces of your financial picture together. Staying organized, responding promptly to documentation requests, and avoiding unnecessary financial changes can help keep the process moving toward closing.

10

Sep

By First Rate Financial Group

Mortgage Tips

Why Your Cash Reserves Matter After You Buy a Home

Saving enough money for a down payment and closing costs can feel like the primary financial goal when purchasing a home. However, becoming a homeowner does not mean your need for savings disappears at closing. Keeping money available after the purchase can provide an important financial cushion as you adjust to the costs and responsibilities of homeownership.

Homeownership Comes With Unexpected Expenses
Even a well-maintained home can surprise you. An appliance can stop working, a plumbing problem can appear, or an HVAC system may suddenly need attention.

Unlike renting, homeowners are generally responsible for handling repairs and maintenance themselves. Having reserves available can make an unexpected expense much easier to manage.

Your First Months May Cost More Than Expected
Moving expenses, window coverings, furniture, utility deposits, landscaping supplies, and basic household items can add up quickly.

It is easy to focus on the purchase price while underestimating how much money may be spent getting settled into a new home.

Reserves Can Protect Your Monthly Budget
An emergency fund can help prevent an unexpected home expense from immediately becoming credit card debt.

The appropriate amount to keep in reserves depends on your household expenses, income stability, property, and overall financial circumstances. The important point is to think beyond simply having enough cash to complete the transaction.

Avoid Draining Every Dollar for the Down Payment
Putting more money down can have financial benefits, but using nearly all available savings to do so may leave little room for unexpected expenses after closing.

Before deciding how much cash to put toward the purchase, consider what you will have remaining afterward.

Plan for Ongoing Maintenance
Homes require maintenance even when nothing is broken. Regular servicing, minor repairs, landscaping, and replacement of aging components should be part of your longer-term financial planning.

Buying a home is not just about being financially prepared for closing day. Maintaining healthy cash reserves afterward can provide flexibility, reduce financial stress, and help you handle the normal surprises that come with owning a home.