Economy Archives | Real Estate & Investment Perspective by Karen Lee Bertiger

2026/07/172026/07/17

Mortgage Rates

30-year fixed-rate (Conforming – $832,750 or less)
● Average contract interest rate increased to 6.65% from 6.58%.
● Highest level since August 2025.
● Points increased to 0.67 from 0.64 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (Jumbo – greater than $832,750)
● Average contract interest rate increased to 6.62% from 6.50%.
● Points increased to 0.54 from 0.42 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
30-year fixed-rate (FHA)
● Average contract interest rate increased to 6.33% from 6.28%.
● Points increased to 0.81 from 0.79 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
15-year fixed-rate
● Average contract interest rate increased to 6.05% from 5.99%.
● Points increased to 0.88 from 0.71 (including the origination fee) for 80% LTV loans.
● Effective rate increased from last week.
5/1 ARM
● Average contract interest rate decreased to 5.75% from 5.84%.
● Points decreased to 0.93 from 0.94 (including the origination fee) for 80% LTV loans.
● Effective rate decreased from last week.

Joel Kan, MBA’s Vice President and Deputy Chief Economist: “Mortgage applications declined as the 30-year fixed rate increased to 6.65 percent, the highest level since August 2025. Purchase applications were down over the week and dipped below last year’s pace in the week following the July 4th holiday. Despite higher mortgage rates, refinance applications increased, led by FHA and VA refinance applications rising 9 and 10 percent, respectively.”

2026/07/082026/07/08

How Important is Accurate Information About Property?

Real estate licensees are expected to present accurate, verified information about the physical characteristics of a property. These days, some of their descriptions read more like puff marketing pieces. Yes, it’s a tough sales market, but all marketing by licensees is regulated by the states where they are licensed. Many agents are using AI to write property descriptions, complete with AI hallucinations.

Trying to project that a particular property is a “lifestyle” type property a la social media can subject licensees to serious discipline. Marketing to a particular segment of the population may invite scrutiny into possible violations of Fair Housing laws, etc.

For you, as a buyer, let your agent know that you will make the determination of what is necessary and desirable for yourself, by using objective criteria about the property details.

Also, it doesn’t hurt to verify the license status of someone claiming to be a real estate licensee before you meet with them or let them into your home.

You can check real estate agents’ licensing status by visiting arello.com

2026/07/082026/07/08

Debt to Income Ratios (DTI) Being Approved by Banks at Higher Percentage (40%) Than in 2007 (39%)

Not since right before the Great Financial Crisis have we seen this! It just appears to me that lenders are trying to get you to play with fire again.

BUYERS! This is a dangerous move at today’s real estate prices. Prices must come down, or you need to offer less on a property that fits your criteria, by finding a seller who is realistic on price and needs to sell (motivated.)

Or WAGES need to increase. Wages are NOT keeping up with inflation. The median income in the US today is approximately $85,000. The income needed to get that DTI under 30% is $110,000 for a wage gap of 28%!

Traditionally, DTI was 28/36%. These days, my recommendation is to keep your DTI under 20% if you can because of the problems with property taxes and property insurance.

Locally here in Florida, many insurnace companies are dictating that costly home improvements be made before renewing your policy. Don’t ignore this. Shop around for new insurance quotes immediately. Don’t let this slide into a situation where you end up with forced insurance placement from your lender.

Sellers would be wise to price their properties correctly from the beginning of marketing.

Remember, your property really isn’t on the market unless it’s on the list…the MLS…and is AVAILABLE to the public for showing to the entire market.

2026/06/102026/06/10

Lipstick Remodel, Prehab or Full Rehab/Remodel?

How do you choose the appropriate refresh for a particular property? You know I always advise keeping your current property in good repair as well as updated and “ready to show” to a broker like myself. (I research properties that may or may not be on the market.)

There are a lot of headlines about the market being dead; statistically, the sales are the lowest they’ve been since before I first got my real estate agent license in the early 1980s! (1982 to be exact – I was first licensed in 1983.) Properties are selling because there are still people who need to move for one reason or another.

It has become a “beauty contest” AND a “pricing contest” which means if your property isn’t strategically listed, it’s being used to sell someone else’s property as a comparison. You want to win both the beauty contest and the pricing contest. So there’s your answer.

Many times it doesn’t pay to do a full remodel if you are selling – your taste may not be the same as your ultimate buyer.

2026/06/072026/06/10

Downsizing Checklist – With Housing Costs Surging Is This a Good Move to Reduce Expenses?

What are your total transaction costs on the sale AND the purchase
What are the holding costs on the new home
Will you have to pay a capital gains tax on the sale of your current home
What are the moving costs
If you will be using your equity from the sale of your home to purchase the new home without a mortgage, how will losing the interest deduction affect your personal taxes
Will you need to store any of your belongings
Be sure to factor in your health care costs & inflation in your new location
It’s MUCH easier to accomplish a down sizing in your 50s & 60s than in your 70s & 80s
What repairs & delayed maintenance will be necessary of your current home to bring it to move-in condition
Can you afford the repairs & potential staging costs
If you will be purchasing your new home before your old home is sold can you afford the overlapping holding costs
Don’t waive a home inspection if you are buying a new build
Can you afford the inflation on home services in your new neighborhood
Will you regret getting rid of your “stuff”
You’re going to get decision fatigue
Will you have seller’s remorse
Make sure you’re not down sizing too small – you don’t want to have to move twice
If you are moving to a completly new area, consider renting before buying

Property taxes, hazard insurance and HOA fees are all increasing and up to 65% of homeowners with mortgages have “escrow shortages” — many were qualified at higher percentages of their income. In my opinion, I would not originate a mortgage (principal and interest) at more than 20-22% of my income because of it. With escrow shortages, your lender keeps the money on a monthly basis that was your old escrow PLUS the amount needed for your new escrow to meet ongoing payments. The average shortage in escrow balances was $2,157.00!!! Property taxes have increased by approximately 15% between 2019 and 2024 (Cotality.) Property insurance has increased approximately 70% between 2019 and 2025, says the Dallas Fed (March.)

This insurance issue is enough on its own to force some homeowners into falling behind on mortgage payments because they cannot move/downsize or otherwise lower their costs.