Your business brings in money. Your bills get paid. Now you want to understand what that income means for buying a home.

For self-employed buyers, the answer takes more than looking at a bank balance.

Bank statement loan income generally starts with eligible deposits over a required review period. For business accounts, lenders account for business expenses and may adjust for ownership. Not every deposit counts, and the same money cannot count twice.

For buyers in Mesa, Gilbert, and nearby communities, understanding this calculation is a useful first step toward a realistic homebuying budget.

Your bank balance is not your monthly income

An account balance tells you how much money is in the account at a particular moment.

It does not tell a lender how much you consistently earn.

For example, an account might contain customer payments, money transferred from savings, and borrowed funds. Those deposits do not all represent business earnings.

A bank statement loan uses a different way to document income. It does not eliminate the need to verify it.

Many programs review 12 or 24 months of statements. The required period and acceptable accounts depend on the lender and your circumstances.

Which deposits need a closer look?

Customer payments tied to your business are a starting point. However, the lender needs to understand where the money came from.

Transfers deserve particular attention.

Suppose a customer pays your business $5,000. Later, you move that money into your personal account. You have not earned $10,000.

The review must avoid counting the same funds twice. Depending on the program, transfers may require supporting records or exclusion from the calculation.

Similarly, an unusual deposit may need an explanation. Keeping the related invoice or transaction record can help answer questions.

Do not move money around to make your statements look stronger. Clear records are more useful than a larger-looking deposit total.

How do business expenses affect the calculation?

Business revenue is not the same as money available for your mortgage payment.

A Mesa contractor may pay for materials, labor, and equipment. A Gilbert consultant may have a different expense structure.

Business bank statement programs account for those costs. Some use a standard expense percentage. Others allow a documented expense calculation under specific guidelines.

Your ownership share can also affect the income available to you.

Here is a simplified illustration:

This example assumes full ownership and no other adjustments. The 50% expense allowance is an illustration—not a universal requirement or a loan quote.

Actual qualifying income depends on the lender’s review. Income trends and other program requirements can change the result.

Should you still compare a conventional loan?

Yes. Self-employment does not automatically make conventional financing unavailable.

Also, taxable income and mortgage qualifying income are not always identical. For example, Fannie Mae’s rules allow specified adjustments to Schedule C income, including adding back certain deductions such as depreciation.

You can review Fannie Mae’s explanation of Schedule C income adjustments.

That’s why I prefer to review your options before recommending a program.

Keep tax decisions with your CPA. A mortgage comparison should help you understand financing—not pressure you to change legitimate tax reporting.

What should you gather first?

Start with a short conversation about your business. Then collect the documents appropriate to the program.

A useful starting list includes:

• Complete statements for the requested accounts and period.
• Your business name, structure, and ownership percentage.
• An explanation of how customers pay you.
• Records supporting unusual deposits or transfers.
• Your purchase goal and comfortable monthly payment.

Use a secure document portal for statements. Do not send account numbers or financial documents through social media.

The lender will also review other factors, including credit, debts, available funds, and the property. A deposit calculation alone does not establish approval.

Compare the loan—not just the income calculation

A larger qualifying income figure does not automatically make a loan the better choice.

Compare the payment, closing costs, cash needed, and loan structure. Bank statement financing may cost more than a conventional option, depending on your situation.

The CFPB’s Loan Estimate explainer can help you identify those details when reviewing offers.

For an overview of available options, visit my bank statement loans in Arizona page.

Frequently asked questions

Can I use personal or business statements?

Some programs accept either. The right approach depends on how your business operates and the lender’s rules.

Will every customer deposit count?

Not necessarily. The lender reviews the source, consistency, documentation, and applicable program requirements.

Does a bank statement loan mean no paperwork?

No. It changes how income may be documented. Other borrower and property documentation still applies.

Can I qualify after one strong month?

One month does not establish the longer-term income picture. The lender reviews the required statement period and applicable business history.

Start with your income picture, then your home search

You do not need to figure out the entire loan process on your own.

First, understand how your business income can be documented. Next, compare the programs and payments that fit your plans.

If you’re self-employed in Mesa, Gilbert, or a surrounding community, let’s start with how your business gets paid. I’ll help you identify what to gather and what we need to review before you set your homebuying budget.

Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval.

The post How Is Bank Statement Loan Income Calculated? appeared first on Home Sweet Loans | Christian Wohl.

Arizona housing inventory in 2026 is giving buyers more homes to compare and more ways to negotiate, even as mortgage rates remain elevated. The three smartest questions to ask are: What is the home’s true value and condition? Which seller concession improves my finances most? Can I afford the payment today without depending on a future refinance?

Those questions matter because September active inventory reached 29,571 homes across Arizona, up 6.7% from a year earlier. The supplied ResiClub analysis of Realtor.com data also shows inventory per 1,000 households running 14% above the average for the same month in 2018 and 2019.

Why Mortgage Rates Stayed Volatile This Week

Mortgage rates follow the bond market more closely than the Federal Reserve’s overnight rate. This week, U.S. Treasury yields were pressured by rising European government-bond yields, oil near $90 per barrel, and heavy issuance of Treasury and corporate debt. More supply requires enough investor demand, and yields can rise when buyers demand more return to absorb that supply.

The 10-year Treasury yield moved as high as 5.35% before improving later in the week. Strong demand at the 10-year auction, a solid 30-year auction, and easing geopolitical concern helped the yield move back below 5.29% by Thursday.

MBS Highway offered a useful explanation for why mortgage rates can remain high even when Treasury yields improve temporarily. Bond-market volatility can widen the mortgage spread, which is the difference between the yield on the 10-year Treasury and mortgage rates. A wider spread can keep consumer mortgage pricing elevated.

The Mortgage Bankers Association survey cited in the report showed the average conforming 30-year fixed rate rising from 7.30% to 7.50%. Purchase applications were 15% lower than a year earlier, refinance applications were down 56%, and adjustable-rate mortgages represented more than 10% of applications. These figures show how payment pressure is changing borrower behavior.

The Federal Reserve Is Still Focused on Inflation

Minutes from the Federal Reserve’s September meeting showed that policymakers unanimously supported the recent rate increase. Several members believed inflation had not improved enough, while the labor market remained close to balance. Fed Governor Christopher Waller said he wanted to see more progress toward the 2% inflation target, although his comments left room for flexibility on the timing of future moves.

Consumer expectations also matter. The New York Fed’s one-year inflation-expectations measure rose to 3.9%, its highest level since 2023, according to the supplied MBS Highway report. Expectations do not determine inflation by themselves, but the Fed watches them because persistent expectations can affect wage and price decisions.

Next week’s Consumer Price Index on Wednesday and Producer Price Index on Thursday are therefore the largest scheduled rate risks. A cooler reading could help bonds and mortgage pricing. A hotter reading could push yields higher. Borrowers close to locking should make a rate strategy decision before those reports arrive based on how much short-term volatility they are comfortable accepting.

Housing Is Slowing Without a Broad Price Collapse

Cotality reported that national home values slipped 0.1% in August and were still 1.8% higher than a year earlier. Its forecast called for flat prices in September and 1.6% appreciation over the following 12 months. The direction is slower and more balanced, not a broad national decline.

National figures also do not describe every Arizona city or neighborhood. Mesa, Gilbert, Chandler, Queen Creek, San Tan Valley, Scottsdale, Tempe, Fountain Hills, and Maricopa can have different inventory, property-condition, and price dynamics. The practical advantage of higher statewide inventory is that buyers can compare more options and use listing-specific facts in an offer.

Three Questions Arizona Buyers Should Ask

What Is the Home Worth and What Will It Cost Me After Closing

Start with comparable sales, current competition, the home’s condition, and the likely cost of repairs or updates. Homes that have been sitting on the market can create a conversation, but longer market time does not automatically prove that a seller is desperate or that the property has a defect. Keep an appropriate inspection contingency and budget for ownership costs beyond the mortgage payment.

Where Should I Use a Seller Concession

Ask the lender to compare the same seller dollars three ways: closing-cost assistance, a permanent rate buydown, and a temporary buydown. Closing-cost help can preserve cash. A permanent buydown may reduce the payment for the full loan term. A temporary buydown can create larger early payment relief but expires on a fixed schedule. Program limits, appraisal, contract terms, and the buyer’s qualification all matter.

A lower purchase price may still be the best choice, especially when it improves the appraisal position or long-term loan balance. The point is to compare the options before the offer is written rather than assuming one structure always wins.

Can I Afford the Payment Without Counting on a Refinance

A future refinance can be useful if rates fall and the economics work at that time, but it should not be required to make today’s payment safe. Use a payment range that fits your budget now. Then treat any future refinance as an opportunity, not a promise.

What Higher Arizona Housing Inventory Means for Buyers

More inventory can improve selection and negotiating leverage, especially for qualified buyers who are ready to act. It can also reduce the pressure to waive protections simply to compete. A fully reviewed preapproval, a clear cash-to-close target, and a concession strategy can make an offer stronger without stretching beyond a safe payment.

Competitive listings still exist. A well-priced home in good condition can attract multiple buyers, and seller concessions are never guaranteed. Reduced leverage in those situations is a tradeoff to evaluate, not a reason to abandon the plan.

What This Means for Refinancing and Home Equity

For homeowners, the decision is broader than today’s first-mortgage rate. A rate-and-term refinance needs enough monthly or long-term benefit to justify the closing costs. A debt-consolidation refinance, HELOC, or home-equity loan requires a comparison of total payments, interest, fees, payoff time, and the risk of securing other debts with the home.

Homeowners with a low first-mortgage rate may prefer a second-lien option rather than replacing the entire mortgage, but variable-rate HELOC payments can change. Homeowners age 62 or older can also compare a Home Equity Conversion Mortgage with other retirement-income and housing options while accounting for occupancy, taxes, insurance, maintenance, and HUD requirements.

Mortgage Market Dates to Watch

• Tuesday October 13: ADP weekly employment and September existing-home sales
• Wednesday October 14: September Consumer Price Index, mortgage applications, and the Federal Reserve Beige Book
• Thursday October 15: September Producer Price Index, weekly jobless claims, and September retail sales
• Friday October 16: import and export prices, industrial production and capacity utilization, and Treasury International Capital data

The Practical Next Step

If you are considering a home in Phoenix, Mesa, Gilbert, Chandler, Queen Creek, San Tan Valley, Scottsdale, Tempe, Fountain Hills, or Maricopa, start with the payment and cash you want to protect. Then compare the price and concession structures available on the specific home. That gives you a decision based on real numbers rather than a rate headline.

Rates can change throughout the day and depend on credit, loan type, occupancy, property type, loan amount, points, market conditions, and other borrower and property factors.

Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval.

The post Arizona Mortgage Market Update: More Inventory Gives Buyers Options (Week of October 9, 2026) appeared first on Home Sweet Loans | Christian Wohl.

You want more flexibility in retirement. However, you also want to protect the home you’ve worked hard to own.

Two reverse mortgage myths can make that conversation harder than it needs to be: that the bank becomes the owner, and that your home must already be paid off.

Neither is correct. With a reverse mortgage, you retain ownership. An existing mortgage does not automatically disqualify you, but it must be paid off when the new loan closes.

Let’s walk through what that means for homeowners in Mesa, Gilbert, and the East Valley.

This article focuses on the FHA-insured Home Equity Conversion Mortgage, or HECM.

Myth 1: “The bank will own my home”

A reverse mortgage does not transfer your home to the lender.

Instead, the lender places a lien on the property to secure the loan. You remain the owner.

The Consumer Financial Protection Bureau’s explanation of reverse mortgage ownership confirms this distinction.

However, ownership comes with ongoing responsibilities. You must:

• Use the home as your primary residence.
• Pay property taxes and required insurance.
• Maintain the property.
• Meet other loan obligations, including applicable property charges.

Failure to meet the requirements can lead to foreclosure. That’s why the conversation should include your full housing budget—not just the mortgage.

For example, a Gilbert homeowner with HOA dues should include those expenses alongside insurance, taxes, and upkeep.

Myth 2: “My house must already be paid off”

You can explore a HECM even if you still have a mortgage.

The existing mortgage must be paid off at closing. Available reverse mortgage proceeds can help cover that payoff. If the proceeds fall short, you may need to contribute additional funds.

The CFPB explains this in its guide to reverse mortgage eligibility requirements.

An important distinction: paying off the old mortgage does not make the debt disappear. You are replacing it with a different loan.

Also, money used to pay off your existing mortgage is not available for other purposes. Your analysis should clearly separate the payoff, loan costs, any required reserves, and remaining proceeds.

What should you compare before deciding?

Start with what you want to accomplish.

Perhaps you want more room in your monthly budget. Maybe you’re considering how home equity fits alongside other retirement resources.

Then compare these three things:

Your ongoing expenses. Include the costs of keeping and caring for the home.

Your borrowing costs. Review upfront charges and how interest and fees affect the balance over time.

Your future plans. Consider how long you expect to stay and what you want to leave to your heirs.

If you do not make voluntary payments, the loan balance generally grows. As a result, your remaining equity may decline.

A useful review should compare alternatives, too. Depending on your needs, keeping your current arrangement, using different financing, or moving may deserve consideration.

Make the first conversation manageable

You do not need to have every answer before asking questions.

For an initial conversation, have these three items in mind:

1. Your estimated home value.
2. Your approximate mortgage balance.
3. The financial goal you want to address.

Those details provide a starting point, not an approval. A lender still needs to evaluate eligibility, the property, and your finances. HECM borrowers must also complete independent counseling through a HUD-approved agency.

You’re welcome to include a family member or financial advisor in the discussion.

For more information about the program, visit my reverse mortgage page for Mesa and surrounding Arizona communities.

Frequently asked questions

What age do HECM borrowers need to be?

Each borrower must be at least 62. A younger spouse’s situation requires a separate review of eligibility and available protections.

Does having equity guarantee approval?

No. Equity is only part of the review. Other borrower, property, and financial requirements apply.

Is a reverse mortgage free money?

No. It is borrowed money secured by your home. Costs and interest affect what you owe.

Should my family be involved?

That’s your choice. However, including trusted family members can help everyone understand your goals and the loan’s effect on future plans.

The takeaway: start with facts, then review your options

You do not have to choose between ignoring your home equity and rushing into a loan.

First, understand the facts. Then review whether the numbers support the life you want in retirement.

If you live in Mesa, Gilbert, or a surrounding community, let’s start with your questions. We’ll review the potential benefits, costs, and responsibilities together.

Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval. HECM loans are FHA-insured and subject to HUD guidelines. Borrowers must occupy the home as their primary residence and meet all loan obligations including payment of property taxes, homeowners insurance, and home maintenance.

The post Two Reverse Mortgage Myths: Who Owns Your Home, and Must It Be Paid Off? appeared first on Home Sweet Loans | Christian Wohl.

Yes. A second-lien HELOC or home equity loan can let eligible homeowners borrow against their equity without refinancing their existing first mortgage. The new loan has its own rate, terms, and payment.

If you have a mortgage rate around 3–4%, that distinction deserves attention. You may need money for a project or another expense without wanting to replace the loan you already have.

My HELOC and home equity loan options in Arizona page explains the available approaches. Here, let’s look at six practical reasons to consider them, and how to decide whether borrowing makes sense.

Why keep your existing first mortgage?

A cash-out refinance replaces your mortgage with a new, larger loan. Its terms apply to the entire new balance, not just the additional cash.

A second mortgage works differently.

For example, suppose you owe $300,000 on your first mortgage and need $50,000 for a project. A separate equity loan would finance the additional amount while leaving the original loan in place.

That structure can be worth comparing when you have a favorable first-mortgage rate. However, keeping that rate does not automatically make the new borrowing affordable.

Review both payments, fees, and the remaining repayment periods.

HELOC vs. home equity loan: what changes?

The CFPB’s HELOC and home equity loan comparison explains these differences.

Both products use your home as collateral. Missing payments can put the property at risk.

Six reasons homeowners consider using equity

1. Consolidating high-interest revolving debt

An equity loan may offer a way to replace expensive credit-card balances with a structured repayment plan.

However, compare the total interest and fees—not just the payment. Stretching repayment over more years can increase the overall cost.

Also, this moves unsecured card debt into debt secured by your home. Include a realistic budget that prevents those card balances from returning.

2. Remodeling the home you want to keep

A kitchen update, bathroom remodel, or flooring project may help your current home meet your needs.

For a Gilbert homeowner who likes the neighborhood, improving the existing home may be worth comparing with the cost of moving.

Get written estimates and include a contingency budget. Improvements do not guarantee a matching increase in property value.

3. Adding space or improving accessibility

Your household may need another room, a more accessible bathroom, or space for a family member.

These projects address how you live, not just how the home looks.

Before financing an addition in Mesa or Gilbert, confirm the scope, permits, contractor qualifications, and any applicable HOA requirements. Then match the borrowing plan to the construction schedule.

4. Handling major home repairs

A roof replacement, plumbing repair, or HVAC replacement can create a substantial expense.

Start with insurance coverage, available cash, and competing financing options. Borrow only what the repair requires and keep the payoff period reasonable for the work being financed.

An equity loan should solve a defined need, not become an open-ended spending account.

5. Addressing medical expenses

Medical costs can prompt an equity-loan conversation, but they deserve extra care.

First, verify the bill and insurance processing. Ask about financial assistance, discounts, and low- or no-interest provider payment plans.

The CFPB recommends reviewing assistance and insurance coverage before agreeing to medical financing.

Borrowing against your home should not replace help you may already qualify to receive.

6. Paying education or training costs

Some homeowners consider equity for tuition or career training.

Compare grants, scholarships, school payment plans, and applicable federal student-loan options first. Those alternatives may provide benefits that a home-secured loan does not.

Avoid letting education borrowing weaken your retirement plan or essential household reserves.

What should you compare before applying?

Ask for a written comparison that addresses:

• The amount you actually need.
• Your existing mortgage payment plus the new payment.
• Opening costs, annual fees, and any early-closure charges.
• Variable-rate exposure and payments after the draw period.
• Total repayment cost over the period you expect to keep the debt.

For a HELOC, confirm any required initial draw. Do not assume an unused credit line will always remain available; lenders can freeze or reduce access in certain circumstances.

Approval also depends on factors such as home value, existing liens, income, and credit. Having equity alone does not guarantee qualification.

Frequently asked questions

Will the new loan receive my existing mortgage rate?

No. Your first mortgage retains its existing terms, while the new borrowing receives separate terms and pricing.

Is a HELOC an emergency fund?

It can provide borrowing flexibility, but it is not a substitute for cash savings. Access may change, and any amount borrowed must be repaid.

Does a lower payment mean I’m saving money?

Not necessarily. A longer repayment period can reduce the payment while increasing total interest. Compare both.

The takeaway

You may be able to use home equity without refinancing a first mortgage you want to keep.

The strongest starting point is a specific purpose, a manageable payment, and a clear payoff plan.

If you own a home in Mesa, Gilbert, or a nearby community, let’s compare your Arizona home equity options using your actual numbers.

Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval.

The post Can You Use Home Equity Without Refinancing Your Mortgage? appeared first on Home Sweet Loans | Christian Wohl.

This week brought better inflation news and slower hiring, while mortgage rates remained volatile. Meanwhile, more sellers reduced their asking prices. For Mesa and Gilbert buyers, the opportunity is to combine a realistic payment with a well-structured offer.

Here’s what changed—and how to put the information to work.

Inflation delivered encouraging news

The latest Personal Income and Outlays report from the BEA showed that core PCE inflation rose 0.2% in August and 3.0% over the past year.

Core PCE excludes food and energy. Headline PCE, which includes those categories, rose 0.3% for the month and 3.4% annually.

MBS Highway described the report as better than expected. It also noted that revisions helped improve the annual figures.

That distinction matters. The report offered encouraging news, but prices were still rising. Slower inflation does not reverse the higher costs households have already absorbed.

September hiring was modest

Friday’s jobs report showed 29,000 additional payroll jobs in September. Revisions also reduced the combined July and August totals by 60,000.

The unemployment rate was 4.2%.

MBS Highway’s takeaway was that weaker payroll growth eased some pressure for another near-term Fed rate increase. However, its commentary also noted that the household survey was more mixed, including increased labor-force participation.

In plain language, the employment picture did not point in one direction across every measure.

Why mortgage rates did not immediately follow inflation lower

Better inflation news initially helped bonds on Wednesday. However, that improvement faded before the day ended.

Mortgage News Daily reported its top-tier 30-year fixed index at 7.60% on September 30, followed by 7.54% on October 1.

Those are dated market readings, not a quote for a particular borrower.

MBS Highway highlighted bond-market volatility as another source of pressure. When investors demand more compensation for mortgage-related risks, the gap between Treasury yields and mortgage rates can widen.

That helps explain why a Treasury headline or a favorable economic report does not always produce the same change in mortgage pricing.

More sellers adjusted their prices

The September housing report from Realtor.com showed several developments worth watching:

• 20.8% of national listings had a price reduction.
• 22.8% of Western listings had a reduction.
• National active inventory exceeded 1.16 million homes.
• The national median asking price was $419,250, down 1.4% from a year earlier.

These are asking-price and listing measures, not a guarantee of what a particular home will sell for.

Meanwhile, the Mortgage Bankers Association reported that purchase applications fell 4% during the week ending September 25. Refinance applications declined 9%.

Together, the reports show the effect of payment pressure: buyers are more selective, and some sellers are responding.

What this means for Mesa and Gilbert buyers

In my local conversations, some homes have been available for three or four months. Those properties can be worth a fresh look.

Start with comparable sales, the home’s condition, and the seller’s actual response to an offer. Time on the market alone does not answer those questions.

Then compare the financing options before deciding what to request.

A price reduction lowers the purchase amount. Allowable seller-paid closing costs can preserve cash. Discount points may reduce the interest rate, but their value depends on the cost and how long you keep the loan.

Seller credits must meet the loan program’s limits and permitted-use rules.

For more on evaluating these listings, read my guide to homes that have been sitting on the market in Arizona.

What I’m watching next week

On Wednesday, October 7, the calendar includes mortgage applications, the September Fed meeting minutes, and a scheduled 10-year Treasury auction.

On Thursday, October 8, weekly jobless claims and the scheduled 30-year Treasury auction follow.

The minutes provide context about the previous meeting; they are not a new rate decision. For a purchase already underway, use these dates as part of your mortgage rate-lock discussion.

Frequently asked questions

Does better inflation news guarantee lower mortgage rates?

No. Mortgage pricing also reflects bond-market conditions, investor demand, and other risks. This week showed why one favorable report is only part of the picture.

Should I ask for a price reduction or seller credits?

Compare both. The better fit depends on your payment, cash needs, loan requirements, and expected time in the home.

Should I base a purchase on refinancing later?

No. Choose a payment you can support now. A future refinance would depend on rates, costs, property value, and your qualifications at that time.

The takeaway

This week offered encouraging inflation news, modest hiring, and evidence that more sellers are adjusting.

For a prepared buyer, the next step is practical: identify a suitable home, check its value and condition, and compare the offer structures.

If you’re considering a home in Mesa, Gilbert, or the surrounding East Valley, I’m happy to help you run those numbers before you make an offer.

Market data are dated as stated; the mortgage-rate snapshot is from October 1, 2026. Rates change throughout the day and depend on borrower, property, loan, and market factors.

Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval.

The post Arizona Mortgage Market Update: Slower Hiring and More Seller Price Cuts (Week of September 28, 2026) appeared first on Home Sweet Loans | Christian Wohl.

Yes, eligible borrowers can use a VA loan again. The next purchase depends on available entitlement, lender approval, and meeting VA requirements. Using the benefit once does not automatically use it up.

If you’re planning a move in Mesa, Gilbert, or another Arizona community, start by reviewing your benefit before choosing your financing.

Your current home—and what you plan to do with it—helps shape the next steps.

First, understand VA entitlement

Entitlement is the amount of the VA guarantee available to support your loan. It is not cash you can withdraw or a promise of loan approval.

Your Certificate of Eligibility, often called a COE, helps us review your benefit. However, the lender must also evaluate your income, credit, debts, and proposed payment.

The VA’s eligibility and entitlement guidance explains how borrowers may restore a previously used benefit.

If you sell your current home

Selling the home and paying off its VA loan generally allows you to request restoration of the entitlement used for that purchase.

For example, you might sell a home in Mesa before buying another in Gilbert. In that case, we would coordinate the payoff, restoration documentation, and financing for the next purchase.

Review this early so your financing plan fits your sale and purchase timelines.

If you keep your current home

Keeping a home with an existing VA loan does not automatically prevent another VA purchase.

You may have enough remaining entitlement. However, the new home must meet VA occupancy requirements as your primary residence. This is not a way to purchase a vacation home or a property intended solely as a rental.

We also need to evaluate the financial responsibilities of keeping the first property.

If you already paid off its VA loan but still own the home, a one-time restoration provision may apply. That deserves a separate review.

** For a broader look at eligibility and purchase options, explore my VA loans in Mesa and the surrounding Arizona communities page. **

Will you need a down payment?

Possibly. Do not assume a second VA purchase will require one—or that it will automatically qualify without one.

Available entitlement, the purchase price, and the appraised value matter. With remaining entitlement, the applicable county loan limit also affects the calculation.

The VA’s explanation of loan limits and remaining entitlement outlines those rules.

Rather than guessing, ask for a calculation tied to your intended purchase.

Compare the full cost of your next move

Your next loan should fit your budget, not just your eligibility.

Compare the monthly payment, closing costs, and cash you would retain after closing. A VA funding fee may also apply unless you qualify for an exemption.

For another perspective, read my guide to VA versus conventional loans in Arizona.

That comparison can help you ask better questions before choosing a loan.

What should you do first?

Before touring homes, gather three things:

• Your current mortgage statement.
• Your Certificate of Eligibility, if you have it.
• A comfortable monthly housing budget.

If you don’t have your COE, I can help you request it. Use a secure document channel when sharing financial information.

Next, discuss whether you prefer to sell or keep your current home. We can then build the financing comparison around that plan.

Frequently asked questions

Does a previous VA approval guarantee another approval?
No. The new purchase requires a fresh review of your qualifications and the property.

Should I get a financing review before listing my current home?
Yes. Understanding your options can help you coordinate the sale, purchase, and cash needed.

Is VA always the best choice?
No single loan fits every purchase. Compare the costs and requirements against your goals.

The takeaway

A previous VA loan should start a conversation—not end it.

If you’re considering another home in Mesa, Gilbert, or the surrounding area, let’s review your benefit and compare the financing before you make an offer.

The post Can You Use a VA Loan Again in Arizona? appeared first on Home Sweet Loans | Christian Wohl.

Mortgage rates moved higher this week, but housing activity offered some encouraging news. Buyers continued signing contracts, and new-home sales increased.

This Arizona mortgage market update explains what moved borrowing costs, what the housing numbers tell us, and how Mesa and Gilbert buyers can put that information to work.

Why did mortgage rates move higher?

The week started with modest relief before mortgage pricing worsened sharply.

MBS Highway identified several pressures: stronger business activity, renewed inflation concerns, oil-market uncertainty, and weak demand at a Treasury auction.

Here’s the connection. Investors buying bonds want a return that compensates them for inflation and risk. When they demand higher returns, borrowing costs rise, including the costs that influence mortgage pricing.

By Thursday, September 24, Mortgage News Daily’s 30-year fixed index reached 7.45%, up from 7.26% the previous day. This is a national benchmark, not an individual loan quote. Mortgage News Daily’s report

It also explains why an older rate estimate deserves another look before you write an offer.

The Fed and employment remain in focus

Last week, the Federal Reserve raised its short-term target range by a quarter point to 3.75%–4.00%. The Fed cited elevated inflation and continued economic strength. Federal Reserve statement

This week’s business data reinforced that picture. S&P Global’s preliminary September composite index rose to 58.4 from 56.0, showing faster growth across manufacturing and services. S&P Global

Meanwhile, initial unemployment claims fell by 1,000 to 197,000 for the week ending September 19. That points to limited layoffs, although it does not measure the whole job market. Department of Labor

The important distinction: the Fed sets a short-term policy rate. Your fixed mortgage rate responds to bond markets and expectations about inflation and the economy.

New-home sales increased

August new-home sales rose 6.4% from July, reaching a seasonally adjusted annual pace of 684,000. That figure describes the sales pace, not the number of homes sold during August. Census Bureau

The increase shows that buyers are still moving forward despite financing challenges.

For someone comparing new construction with an existing home, it is a reminder to examine the complete package: price, financing costs, incentives, and the property itself. I have been saying this for a couple of years now when rates spike up, this is the buyers opportunity to negotiate; lower rates bring more competition and less bargaining power.

The West led the monthly gain in pending sales

NAR’s latest pending-sales report provided another encouraging signal.

August contract signings increased 3% in the West, the strongest monthly improvement among the four regions. Nationally, pending sales rose 0.3%. The West remained 6.7% below last year, so the monthly gain represents improvement within a slower market. NAR’s August report

Pending sales track signed contracts rather than completed closings. They help show whether buyers are taking the next step.

What’s coming next week?

The September 28–October 2 calendar includes several important reports:

• Tuesday, September 29: Case-Shiller and FHFA home prices, plus JOLTS job openings.
• Wednesday, September 30: ADP employment, PCE inflation, the GDP revision, and mortgage applications.
• Thursday, October 1: Weekly unemployment claims.
• Friday, October 2: The September jobs report.

Inflation and employment will be especially important to watch because they inform expectations about future Fed policy and borrowing costs. BEA calendar · BLS calendar

How buyers can use this information

Higher rates make the structure of your offer more important.

I’m seeing some Mesa and Gilbert homes sit for three or four months. Time on the market alone does not mean a property has a problem. It gives us a reason to investigate the home and start a conversation with the seller.

Before asking only for a price reduction, compare an eligible seller credit toward:

• Closing costs, helping preserve your savings.
• A temporary buydown, reducing your early payments.
• Discount points, purchasing a lower rate on the loan.

A temporary buydown ends, so the full payment must fit your budget. Seller-credit limits also depend on the loan and transaction.

For example, if you’re considering asking for $25,000 in seller help, let’s compare the allowable options before your Realtor submits the offer.

Want to catch up on last week’s update? – click here

Focus on the whole deal

A lower rate is valuable. So are a fair purchase price, seller assistance, and cash left after closing.

In a competitive, multiple-offer situation, buyers can face fewer concessions or pressure to bid above asking. A willing seller today offers a different opportunity: negotiating terms around your needs.

My guide to homes sitting on the market in Arizona explains what to evaluate.

Send me a listing and your comfortable payment range. Your Realtor and I can help you turn the market information into a well-structured offer.

Rates change throughout the day and depend on borrower, property, loan, and market factors.

Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval.

The post Arizona Mortgage Market Update: Buyer Options (week of September 25, 2026) appeared first on Home Sweet Loans | Christian Wohl.

Want to learn more? Read What is a Reverse Mortgage and How Does It Work In Arizona?

5. What happens during the application and underwriting?

After counseling, the application and supporting documents move through the lender’s review process.

You receive disclosures explaining the proposed loan and estimated costs. Read them carefully, and ask about anything you do not understand.

Next, the lender reviews your credit history, income, assets and property expenses.

Even without a required monthly principal-and-interest payment, you must have the ability to meet ongoing obligations.

These include taxes, insurance and other required property charges. As a result, past payment history matters.

If an illness, death or other major event affected your finances, explain what happened. Supporting documents may help the underwriter evaluate the circumstances. However, an explanation does not guarantee approval.

In some cases, the lender requires a Life Expectancy Set-Aside, or LESA. This reserves part of the proceeds for certain property charges and reduces the funds available for other uses.

Underwriters also ask follow-up questions. For example, they may request a clearer statement or an explanation of a late payment.

Those requests are a normal part of reviewing the file.

6. What happens during the appraisal?

Meanwhile, the lender arranges an FHA appraisal and title review.

The appraisal provides an independent opinion of your home’s value. It also reviews the property against applicable FHA standards.

Your first analysis uses an estimated value. Once the appraisal arrives, we update the loan figures.

If the appraised value differs from the estimate, your available proceeds may change.

According to HUD’s HECM program overview, available funds depend on factors including age, interest rates and property value, subject to program limits.

The appraiser may also identify repairs. Depending on the issue, work may be required before closing or handled through an approved repair arrangement.

Before spending money, confirm what the lender requires.

An appraisal is not a full home inspection. Therefore, it should not replace a separate inspection when one is appropriate.

7. What happens at closing?

Once the lender clears the remaining conditions, we review the final numbers.

Before signing, you should understand:

• The total loan costs
• Which existing liens will be paid
• Your available proceeds
• Any required set-asides
• The selected payment plan
• The interest-rate terms
• Your ongoing obligations

A title or settlement provider coordinates the signing. Depending on the provider, a mobile notary may be available.

Keep a complete copy of your documents. Also, ask any remaining questions before you sign.

You continue to own the home after closing. The lender holds a lien that secures the debt.

8. When do you receive the funds?

For most reverse mortgages on a home you already own, signing and funding happen on different days.

Generally, a three-business-day cancellation period applies after signing and receiving the required disclosures and cancellation notices.

Saturdays usually count. Sundays and federal legal holidays do not.

For example, if all required events occur on Thursday, the period generally ends Monday night, assuming no holiday. Funding may then occur Tuesday, provided all funding requirements are met.

Your closing documents identify the cancellation deadline and instructions. Follow those instructions if you decide to cancel.

HECM for Purchase generally does not include this federal cancellation period.

After funding, the way you receive money depends on your selected plan. An initial disbursement, line-of-credit advance and monthly payment each follow their own procedures.

Therefore, confirm the actual timing before scheduling expenses.

9. How long does the reverse mortgage application process take?

For planning purposes, allow roughly one to two months for a straightforward file once you decide to proceed. This is an estimate, not a promised closing date.

Counseling availability, document collection and the lender’s workload all affect timing.

In addition, the process can take longer when a file involves:

• Required repairs
• Unresolved liens
• Probate or title issues
• Trust or power-of-attorney reviews
• Missing financial records
• Appraisal questions

To help the process move smoothly, provide complete documents and respond to requests promptly.

Also, disclose potential issues at the beginning. Finding a title problem early gives everyone more time to resolve it.

What should you remember after funding?

Once the loan funds, the servicer handles statements and available advances.

Keep the servicer’s contact information with your loan documents. If you choose a line of credit, learn how to request funds before you need them.

You must continue living in the home as your primary residence and meeting the loan’s requirements. These include paying taxes and insurance, maintaining the property and handling applicable HOA charges.

Also, respond to occupancy-certification requests.

Failure to meet the loan requirements can cause default and may lead to foreclosure. Understanding these responsibilities is part of deciding whether the loan fits.

Frequently asked questions

Do I have to own my home outright?

No. However, existing mortgage liens generally must be paid off when the HECM closes.

Available loan proceeds may cover that payoff. If they do not, you may need additional funds or another approach.

Does the lender check my credit?

Yes. The lender reviews credit history as part of the financial assessment.

Although HECM qualification differs from a traditional mortgage, your history of meeting financial obligations still matters.

Can my adult children participate?

Yes, with your permission and subject to the counselor’s or lender’s procedures.

Family involvement can help everyone understand your goals and future responsibilities. However, the decision remains yours.

Can I stop after the initial consultation?

Yes. Reviewing an analysis does not require you to apply.

If you proceed far enough to incur third-party costs, ask which charges may remain payable if you stop.

Will I receive all my available proceeds at once?

Not necessarily. The loan structure, required payoffs and disbursement limits affect how much you can receive initially.

Therefore, review both the amount and timing before choosing a payment plan.

Start with a clear picture of your options

The reverse mortgage application process becomes easier to follow when you know what each step is for.

First, we clarify your goals. Then we review your numbers, counseling, documents and property. Finally, you consider the approved terms before closing.

If you own a home in Mesa, Gilbert or the surrounding East Valley, I can help you understand what that process could look like.

Bring your latest mortgage statement and your questions. We’ll start there.

Reverse Mortgage Blog Compliance Footer
Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval. HECM loans are FHA-insured and subject to HUD guidelines. Borrowers must occupy the home as their primary residence and meet all loan obligations including payment of property taxes, homeowners insurance, and home maintenance.

The post What Should You Expect When Applying for a Reverse Mortgage in Arizona in 2026? appeared first on Home Sweet Loans | Christian Wohl.

Before asking for $25,000 off the purchase price, compare how a seller credit could affect your closing costs, cash reserves and mortgage payment.If a home seller is willing to negotiate by $25,000, should you ask for a lower purchase price or use that money as a seller credit?

For many Mesa and Gilbert home buyers, a seller credit may provide more immediate value by reducing cash due at closing or helping pay for a mortgage-rate buydown. A price reduction may be better when the buyer wants a permanently lower loan balance and already has enough cash for closing.

The right answer depends on the buyer, property, loan program,

and expected ownership timeline. That comparison should happen before the purchase offer is written.

Why this matters in the Mesa and Gilbert housing market

Home prices remain elevated throughout the East Valley. At the same time, some homes are sitting on the market long enough for sellers to become more open to negotiation.

In my day-to-day Mesa and Gilbert market conversations, it is not unusual to see meaningful concessions discussed when a listing has aged and the seller is motivated. Depending on the property and situation, negotiations in the 4% to 6% range can happen.

That does not mean every seller will provide a large concession. Seller motivation, property condition, competing offers, appraisal risk and net proceeds all matter.

But when a seller is willing to negotiate, buyers should not automatically ask for the full amount as a price reduction. The more useful question is:

Where will the seller’s money help this particular buyer most?

How much would a $25,000 price reduction save?

Consider a hypothetical $500,000 home purchase with 10% down.

At the original price:

• Purchase price: $500,000
• Estimated 10% down payment: $50,000
• Estimated loan amount: $450,000

After a $25,000 price reduction:

• New purchase price: $475,000
• Estimated 10% down payment: $47,500
• Estimated loan amount: $427,500

Maintaining the same 10% down-payment percentage reduces the loan amount by approximately $22,500.

Using a hypothetical 30-year fixed rate of 7% strictly for illustration, financing $22,500 less would reduce the principal-and-interest payment by approximately $150 per month.

That is real, permanent savings. The buyer also needs approximately $2,500 less for the down payment because 10% is now being calculated from a lower purchase price.

But that does not necessarily make the price reduction the best choice.

This example excludes property taxes, homeowners insurance, mortgage insurance, homeowners-association fees and other housing expenses. It is an educational illustration, not a current rate quote.

Buyers who need additional help with their upfront funds should also review the available down payment assistance options for Mesa and Gilbert buyers.

What could a $25,000 seller credit accomplish?

Instead of reducing the purchase price, the seller might keep the price at $500,000 and provide a credit of up to $25,000 toward the buyer’s eligible expenses.

Depending on the mortgage program and transaction, that credit may help pay for:

• Lender and title fees
• Appraisal and other eligible transaction costs
• Prepaid interest
• Initial property-tax and insurance deposits
• Discount points for a permanently lower mortgage rate
• A temporary rate buydown
• Other allowable closing expenses

The Consumer Financial Protection Bureau explains that sellers may agree to contribute toward a buyer’s closing costs as part of the purchase contract.

If the buyer has enough eligible costs, a $25,000 credit could reduce the cash needed at closing by considerably more than the $2,500 down-payment reduction created by lowering the price.

That may allow the buyer to retain more savings for moving, repairs, furniture or an emergency reserve.

Could the credit lower the mortgage payment more?

Possibly, but the actual numbers must be calculated using current mortgage pricing.

Part of the seller credit may be used to pay discount points. Discount points are upfront costs paid in exchange for a lower mortgage rate.

The amount of rate reduction received for each point changes with the loan program, lender and financial markets. One point does not automatically reduce the interest rate by a specific amount.

A permanent rate buydown could potentially provide more than the approximately $150 monthly principal-and-interest savings created by the price reduction. It could also provide less. The only responsible way to know is to compare actual loan options on the same day.

The CFPB recommends evaluating points over several possible ownership periods. Its guide to mortgage points and credits explains why the expected time in the home or mortgage matters.

What about a temporary rate buydown?

A seller credit may also be used to fund an eligible temporary buydown.

For example, a 2-1 buydown temporarily reduces the buyer’s effective payment during the first two years:

• First year: payment calculated at 2 percentage points below the note rate
• Second year: payment calculated at 1 percentage point below the note rate
• Third year and beyond: full payment based on the note rate

The buyer generally must qualify using the full note-rate payment, not the temporarily reduced amount. The buydown does not change the permanent mortgage rate.

A temporary buydown can make the first years of homeownership feel easier, but it should not be used to justify a payment the buyer cannot comfortably handle once the subsidy ends.

Are there limits on a $25,000 seller credit?

Yes. The full credit may not be available or usable in every transaction.

The limit depends on factors that can include:

• Loan program
• Occupancy
• Down-payment percentage
• Loan-to-value ratio
• Property type
• Amount of eligible closing costs
• Appraised value

For example, Fannie Mae’s current conventional guidelines generally permit financing concessions on a primary residence or second home of:

• 3% when the loan-to-value ratio is greater than 90%
• 6% when the loan-to-value ratio is between 75.01% and 90%
• 9% when the loan-to-value ratio is 75% or lower
• 2% for an investment property, regardless of loan-to-value ratio

Under those guidelines, the hypothetical $500,000 purchase with 10% down has a 90% loan-to-value ratio. A 5% seller credit may fit within the 6% limit.

However, the buyer must still have enough eligible costs to use the credit. Fannie Mae states that financing concessions must be no greater than the borrower’s actual closing costs. Review the current Fannie Mae interested-party contribution guidelines for additional details.

FHA, VA, USDA, Non-QM and other programs have their own requirements. The proposed credit should always be reviewed by the lender before the offer is submitted.

Can the buyer receive unused seller-credit money in cash?

Generally, no.

If the contract provides a $25,000 seller credit but the buyer has only $18,000 in eligible costs, the remaining $7,000 does not normally become cash paid to the buyer.

Unless the transaction can be properly restructured before closing, the unused amount may return to the seller.

This is one reason that asking for the largest possible credit without first calculating the eligible costs can be a mistake.

Could a higher price create an appraisal problem?

Yes.

A seller may be willing to provide a large credit only if the contract price remains higher. However, the home must still support that price through the appraisal and underwriting process.

For example, a seller might accept:

• $475,000 with no credit, or
• $500,000 with a $25,000 credit

Those offers may create a similar net result before other expenses, but the $500,000 contract still needs adequate market support.

If the home appraises below the contract price, the buyer and seller may need to renegotiate. The buyer could also be required to bring additional money, depending on the contract and loan structure.

A seller credit should solve an affordability problem—not create an appraisal problem.

When is the $25,000 price reduction more attractive?

The price reduction may be the stronger option when:

• The buyer already has ample cash for closing
• The buyer wants the lowest possible loan balance
• The buyer does not have enough eligible costs to use the full credit
• Paying discount points does not produce an attractive break-even period
• The buyer expects to sell or refinance relatively soon
• The lower price helps address an appraisal concern
• The loan program limits the available seller contribution

A lower price creates permanent principal reduction and does not depend on keeping the original mortgage long enough to recover the cost of discount points.

When is the $25,000 seller credit more attractive?

The seller credit may be more useful when:

• Cash due at closing is the buyer’s primary obstacle
• Preserving an emergency reserve is important
• Current pricing makes a permanent buydown financially useful
• A temporary buydown supports the buyer’s short-term budget
• The buyer expects to keep the mortgage beyond the calculated break-even point
• The buyer has enough eligible costs to use the credit
• The loan program permits the proposed contribution

For a buyer who would otherwise drain most of their savings at closing, keeping additional cash available may feel more valuable than reducing principal and interest by approximately $150 per month.

What should buyers compare before making an offer?

Before choosing a negotiation strategy, ask the lender to prepare several versions of the same purchase:

1. $500,000 purchase with no seller credit
2. $475,000 purchase with no seller credit
3. $500,000 purchase with a $25,000 closing-cost credit
4. $500,000 purchase using part of the credit for a permanent rate buydown
5. $500,000 purchase using part of the credit for a temporary buydown

For each option, compare:

• Down payment
• Estimated cash to close
• Principal-and-interest payment
• Total estimated housing payment
• Initial loan balance
• Cost of discount points
• Estimated break-even period
• Cash reserves remaining after closing

This gives the buyer and Realtor a specific negotiating objective instead of simply asking for the biggest-looking concession.

Frequently asked questions

Can a seller credit pay the buyer’s down payment?

Generally, seller credits are used for allowable closing costs rather than the buyer’s required minimum down payment. The exact treatment depends on the mortgage program.

Is a seller credit free money?

No. The concession is part of the overall negotiation. The seller will consider the credit when evaluating the price and net proceeds.

The buyer may also be financing a higher purchase price than they would with a straight price reduction.

Is a $25,000 seller credit always better than $25,000 off the price?

No. The best choice depends on the buyer’s available cash, loan program, current mortgage pricing and anticipated time in the home or loan.

Can a seller credit be used with a conventional loan?

Yes, when the contribution fits the conventional loan guidelines and the buyer has enough eligible expenses. The permitted percentage depends partly on occupancy and loan-to-value ratio.

Can the seller pay for a permanent or temporary buydown?

Often, yes, subject to the loan program, contribution limits and transaction requirements. The lender should calculate and approve the structure before it is written into the contract.

Should the buyer request a concession before getting preapproved?

The buyer should first complete a thoroughly reviewed preapproval. The lender can then determine which concessions are permitted and where the money may provide the greatest benefit.

The takeaway for Mesa and Gilbert home buyers

A $25,000 price reduction sounds substantial—and it is. But on a hypothetical $500,000 purchase with 10% down, it reduces the financed balance by approximately $22,500 and saves about $150 per month in principal and interest at an illustrative 7% rate.

A $25,000 seller credit may potentially preserve considerably more cash at closing or fund a mortgage-rate strategy that creates greater payment relief.

Neither choice is automatically better.

The goal is to identify the buyer’s actual problem and use the seller’s money where it has the greatest impact.

If you are considering a home in Mesa, Gilbert, Chandler, Queen Creek, San Tan Valley, Scottsdale, Tempe, Fountain Hills, Maricopa or another Phoenix-area community, send me the listing before the offer is written.

I can compare the lower price, closing-cost credit, permanent buydown and temporary buydown so you and your Realtor can negotiate with clear numbers.

Mortgage rates change throughout the day and depend on factors including credit profile, property type, occupancy, loan amount, down payment or equity, points, loan program and market conditions. The rate used in this article is a hypothetical illustration, not a personalized quote or an offer to lend.

Home Sweet Loans | Christian Wohl, Certified Mortgage Advisor | NMLS #2043242
Barrett Financial Group LLC | NMLS #181106 | sweetloans.net
Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval.

The post Before You Ask for $25,000 Off an Arizona Home, Compare a Seller Credit appeared first on Home Sweet Loans | Christian Wohl.

Arizona Mortgage Market Update Fed Hikes While Mortgage Rates Find Their Footing

This week’s **Arizona mortgage market update** starts with a headline that needs context: the Federal Reserve raised its short-term rate by 0.25 percentage point, but mortgage rates did not simply rise by the same amount.

The bigger story was how the bond market interpreted the Fed’s message, along with renewed inflation concerns from oil prices above $100 per barrel. Treasury yields climbed into the Fed meeting, mortgage rates moved higher, and then both improved after the market had time to digest Chair Kevin Warsh’s comments.

For Phoenix-area buyers, homeowners and real estate professionals, the practical message is straightforward. Rates remain elevated and volatile, housing activity is soft, and negotiating strategy matters.

## Did the Federal Reserve raise interest rates this week

Yes. On September 16, the Federal Open Market Committee unanimously raised the federal funds target range by 0.25 percentage point to 3.75% to 4.00%.

The [Federal Reserve’s statement](https://www.federalreserve.gov/newsevents/pressreleases/monetary20260916a.htm) was direct: **“Inflation remains elevated.”** The Fed also said economic activity was expanding at a solid pace and that job gains had kept pace with the workforce.

That mix explains the rate hike. The Fed sees inflation running above its 2% goal, while employment and consumer spending remain firm enough to tolerate tighter policy.

## Why did mortgage rates rise if the Fed move was expected

Mortgage rates are not set directly by the Federal Reserve. They are influenced by mortgage-backed securities and longer-term Treasury yields, especially the 10-year Treasury.

The 10-year yield closed at 4.97% Monday, reached 5.01% Wednesday and eased to 4.94% Thursday. The Fed hike itself was widely expected. The sharper market reaction came during Chair Warsh’s press conference, when he described financial conditions as less restrictive than some investors expected and left room for additional hikes.

In plain English, markets heard that this might not be a one-and-done move.

Oil added another layer. When energy prices rise quickly, investors worry that higher transportation and production costs will spread through the economy. Inflation is unfriendly to bonds, so those concerns can push Treasury yields and mortgage rates higher.

This continues a theme I covered in my earlier post on [how oil prices pushed Arizona mortgage rates higher](https://sweetloans.net/arizona-mortgage-market-update-august-22-2026/).

## What happened in the housing market

Housing data was mixed, but the broad picture remains slow.

The [National Association of Realtors reported](https://www.nar.realtor/newsroom/nar-pending-home-sales-report-shows-0-point-3-percent-increase-in-august) that pending home sales increased 0.3% in August. However, contracts were still 4.7% below a year ago. The West performed better month to month, rising 3.0%, but remained 6.7% lower year over year.

New construction also lost momentum. August housing starts fell 2.6% to a seasonally adjusted annual rate of 1.275 million. Permits ran at 1.394 million, while completions were 27.1% lower than a year earlier. Builder confidence fell to 32, well below the neutral level of 50.

There is an important opportunity inside those softer numbers. The National Association of Home Builders reported that 38% of builders cut prices in September and 66% used sales incentives. For buyers in Mesa, Gilbert, Chandler, Queen Creek and the rest of the East Valley, that makes it worth comparing builder incentives with resale seller credits instead of assuming the lowest list price creates the best payment.

## Are buyers getting more negotiating power in Arizona

In many situations, yes. Slower demand and more sales incentives can give a prepared buyer room to negotiate. However, the useful question is not simply, “How much can I get off the price?”

The better question is, “Where does the seller’s money help me most?”

A price reduction lowers the loan amount modestly. A closing-cost credit can preserve cash. A permanent rate buydown may reduce the payment for the life of the loan, while a temporary buydown can provide larger payment relief during the first one or two years.

The right structure depends on the buyer’s cash, timeline and long-term plan. That math should be run before the offer is written.

## What does this Arizona mortgage market update mean for buyers

If you are buying, do not wait for one perfect headline. Start with a fully reviewed preapproval, a payment range you can live with and a plan for negotiating credits.

Mortgage applications show that many buyers have stepped back. Purchase volume was down 19% from a year ago in the latest Mortgage Bankers Association survey. Less competition may help you negotiate, but only if the home and payment make sense for your life.

If your down payment is the main obstacle, review the current [down-payment assistance options for Mesa and Gilbert buyers](https://sweetloans.net/down-payment-assistance-mesa-gilbert-arizona-2026/) before assuming you need to wait another year.

## What does it mean for homeowners considering a refinance

The latest average contract rate in the Mortgage Bankers Association survey was 6.97% for a conforming 30-year fixed mortgage. That was the highest level since May 2025, and refinance applications fell 9% for the week.

For many homeowners, a traditional refinance will not pass the break-even test today. Still, it helps to know the rate and monthly savings that would make a refinance worthwhile. Then, if the market improves, you already know your trigger instead of starting from scratch.

## What does it mean for homeowners considering their equity

Cotality estimates that homeowners with mortgages hold $17.9 trillion in equity, including $11.5 trillion considered tappable. The average mortgaged homeowner has about $310,000 in housing wealth.

Equity can be useful, but it is not free money. A HELOC, home-equity loan, cash-out refinance or reverse mortgage for a homeowner who qualifies will produce different payments, costs and risks. The goal should come first, followed by the product.

For homeowners age 62 or older, my guide to [how reverse mortgages work in Arizona](https://sweetloans.net/what-is-a-reverse-mortgage-and-how-does-it-work-in-arizona/) explains the requirements, payment options and responsibilities in plain language.

## What economic reports could move mortgage rates next week

The next **Arizona mortgage market update** will have four important data points to review:

– **Tuesday, September 22:** ADP weekly employment estimate
– **Wednesday, September 23:** MBA mortgage applications
– **Thursday, September 24:** Weekly jobless claims and August new-home sales
– **Friday, September 25:** August durable-goods orders

Strong employment, home-sales or manufacturing data can push yields higher if investors think the economy can absorb more Fed tightening. Softer data may help bonds and mortgage rates, although oil and geopolitical developments can still outweigh an individual report.

## The bottom line for Arizona borrowers

This week’s Arizona mortgage market update is not simply “the Fed raised rates.” The full story is that inflation risk remains high, the Fed signaled it may not be finished, Treasury yields briefly moved above 5%, and housing demand softened under the weight of higher borrowing costs.

For Arizona buyers, that creates both a challenge and an opportunity. Affordability is tighter, but negotiating leverage is better. For homeowners, a refinance or equity decision should be made with a clear goal and a full comparison of costs, payments and long-term impact.

If you want to know what this market means for your specific loan amount, credit profile and goals, I am always available for a straightforward conversation. No pressure and no pitch, just a clear answer about where you stand.

*Mortgage rates change throughout the day. Any rate cited here is a market snapshot, not a quote or an offer to lend. This is not a commitment to lend. All loans are subject to credit approval.*

The post Arizona Mortgage Market Update Fed Hikes While Mortgage Rates Find Their Footing (week of September 19, 2026) appeared first on Home Sweet Loans | Christian Wohl.