ADU Income – using ADU income to qualify for a purchase or rate/term refinance is now easier as Fannie Mae will allow income from the ADU unit to bolster an applicant’s qualifying income. Important to note that it can only account for 30% of the borrower’s income (if they borrower made $10,000 a month, they could theoretically add $3k per month) and it only applies to 1-unit primary residences with one ADU (properties with multiple ADUs or units don’t qualify). This aligns with Freddiemac’s previous update regarding ADUs and standard rental income documentation applies. As an aside thereare DSCR programs that have a favorable look on ADU income.
Mortgage rates – improved slightly this week and are dancing with 3-year lows. Mortgage rates are down about 0.25% from this time last year.
Home Values – Cotality released their Home Price Index Report for the month of August and it showed that home values declined by 0.3%. Home values remain up 1.3% on a year over year basis, with the prediction that values will increase 3.9% over the next 12 months.
Retail Sales – with the government shutdown halting economic reports, alternative sources are being followed by investors. September retail sales declined sharply but remain up 5.42% year over year (down from 6.81% in August).
Losing Contracts? this year I had a 10-day period where 4 different folks fell out of contract. According to Redfin 56,000 contracts were cancelled in August and currently 2025 is looking to the highest year for % of sale fails in the past 9.
Mortgage Applications to purchase homes declined by 1% last week but remain up 14% year over year. Refinances fell 8% but are still up 18% year over year.