Blake Hermann, Loan Officer

11/01/2026

The Fed does not set your mortgage rate. Never has.

On Wednesday the Fed held its benchmark rate at 3.75% to 4.00%, with two members voting for a hike (Federal Reserve, Oct 28, 2026). Yet the average 30 year fixed mortgage is 7.24% (Freddie Mac, Oct 29, 2026), up from 6.17% a year ago. That's more than three points above the Fed's number.

Why the gap? The Fed controls the overnight rate banks charge each other. Mortgage rates follow what investors demand for long term money, which is tied closely to the 10 year Treasury and how they feel about inflation. If the market expects inflation to stick around, long rates can climb even while the Fed sits still.

What that means for you: waiting on a Fed cut to fix your mortgage rate is a shaky plan. Watch inflation reports and the bond market instead.

If you already own, the better question isn't "where is the Fed." It's "does my refinance break even." Divide your closing costs by your monthly savings. If you'd earn it back before you'd move, it's worth a look. Need driven refis (dropping FHA mortgage insurance, paying off high interest debt, getting out of an ARM) can still pencil at these levels.

Send me your balance, rate, and rough home value at pillarmortgagegroup.com and I'll run your break even for free.

Sources: Federal Reserve FOMC statement (Oct 28, 2026); Freddie Mac PMMS (Oct 29, 2026)

Scottsdale mortgage broker built on communication. Conventional, FHA, VA, DSCR, jumbo, and bank statement loans, average close about 18 days. NMLS #2700076.

10/30/2026

Looking at a refinance Loan Estimate, do you know which fees you can actually push back on?

Most people assume it's all set in stone. It's not. Refi closing costs typically run 2% to 6% of the loan amount (The Mortgage Reports), so a $400,000 loan can mean $8,000 or more. And with the 30-year at 7.24% this week, down from 7.32% (Freddie Mac, Oct 29, 2026), you need every dollar of that to pencil.

Here's what I'd do:

1. Get Loan Estimates from at least three lenders on the same day, same rate, same lock period. Lay them side by side.
2. Question the lender fees. Origination, application and underwriting charges are negotiable. Appraisal and recording usually aren't.
3. Shop title and insurance. Ask for add-on fees to be waived.
4. Ask what a lender credit costs you in rate. Sometimes a slightly higher rate with credits beats writing a check.
5. Run the break-even: closing costs divided by monthly savings. If it takes longer than you'll own the home, skip it.

As a broker I shop multiple wholesale lenders, so you see real options instead of one bank's menu.

Send your balance, rate and rough home value at pillarmortgagegroup.com and I'll run your break-even free.

Scottsdale mortgage broker built on communication. Conventional, FHA, VA, DSCR, jumbo, and bank statement loans, average close about 18 days. NMLS #2700076.

10/29/2026

Your buyer's loan type can matter more to your closing than their offer price.

Two offers at $450,000 can play out very differently once the lender gets involved. Here's the side by side I walk Arizona sellers through.

Conventional: An appraisal is required, but property standards are usually lighter. Seller credits cap at 3% under 10% down, 6% at 10% to 25%, 9% above 25% (Fannie Mae).

FHA: Lower down payment, so lots of these buyers. The appraiser also checks safety items like peeling paint, missing handrails, or a worn roof. Seller credits cap at 6% (HUD 4000.1).

VA: Often well qualified buyers with no down payment. VA has its own minimum property requirements, and concessions cap at 4% (VA Lender's Handbook).

None of these is a bad offer. Just know what you're signing up for. A slightly lower price with a clean conventional loan can beat a higher one that stalls over repairs.

With the 30 year at 7.32% (Freddie Mac PMMS, 10/22/26) vs 6.19% a year ago, more buyers are leaning on FHA and seller credits. Selling to buy again? I can show you the next payment and whether a refinance beats moving.

Send me the offers you're weighing and I'll tell you how each buyer's loan is likely to behave. pillarmortgagegroup.com

Scottsdale mortgage broker built on communication. Conventional, FHA, VA, DSCR, jumbo, and bank statement loans, average close about 18 days. NMLS #2700076.

10/28/2026

Picture a buyer in Gilbert who loves the house, but the payment at 7.32% makes her stomach drop. Then we run a 2-1 buydown.

On a $400,000 loan, principal and interest at 7.32% is about $2,748 a month. With a 2-1 buydown, year one is figured at 5.32%, about $2,226. Year two at 6.32%, about $2,481. From year three on, you pay the real note rate again: $2,748. (Illustration only. Your numbers will differ.)

Add it up and the subsidy is roughly $9,450 over two years. Someone has to fund that up front, usually a seller credit or builder incentive, and it sits in escrow to cover the gap. It is not free money, and it is not a lower rate for life.

Why look at it now? Freddie Mac had the 30 year fixed at 7.32% on 10/22, up from 6.19% a year ago. Asking a seller for a buydown credit instead of a small price cut can ease the first two years.

The honest part: the payment steps up in year three. You still qualify at the full note rate, and nobody can promise rates will fall so you can refinance. Buy now, refi later only works if the break-even works when you get there.

Thinking about buying in Arizona? Send me the price and I'll run a 2-1 buydown against a straight price cut, free, at pillarmortgagegroup.com.

Source: Freddie Mac PMMS, 10/22/26

Scottsdale mortgage broker built on communication. Conventional, FHA, VA, DSCR, jumbo, and bank statement loans, average close about 18 days. NMLS #2700076.

10/27/2026

Most FHA borrowers think refinancing means starting from scratch. It doesn't have to.

The FHA Streamline Refinance is one of the lighter refis out there. You need an existing FHA loan, a current payment history, and a loan that's at least 210 days old with 6 payments made (HUD Handbook 4000.1). The refi also has to show a net tangible benefit, like a lower payment or moving out of an adjustable rate into a fixed one. Many streamlines skip the appraisal, though lender overlays vary, and cash back is basically off the table.

The catch right now: Freddie Mac has the 30-year at 7.32% (PMMS, 10/22/26), up from 6.19% a year ago. So a rate-only refi is tough, but a streamline can still pencil if your FHA rate is higher than that or an ARM is about to reset.

Before any refi, run the break-even: closing costs divided by monthly savings. If you'll stay past that number, it can work.

I'm a broker and shop multiple wholesale lenders. Send your balance, rate, and rough home value at pillarmortgagegroup.com and I'll run it free.

Sources: HUD Handbook 4000.1, Freddie Mac PMMS 10/22/26

Scottsdale mortgage broker built on communication. Conventional, FHA, VA, DSCR, jumbo, and bank statement loans, average close about 18 days. NMLS #2700076.

10/26/2026

Where did all the refinances go? Fair question, because the numbers are loud right now.

The MBA weekly survey for the week ending October 16 showed refinance applications 59% below the same week last year (MBA, Oct 2026). Total applications fell 5.3% and purchase applications dropped 7% on the week. The average 30-year contract rate in that survey was 7.41%, down from 7.50% (MBA, Oct 2026). Freddie Mac had the 30-year at 7.32% on October 22, compared to 6.19% a year ago (Freddie Mac PMMS).

What caught my eye: refis were still 39% of all applications that week (MBA). Volume is down, but people are still filing. Those borrowers aren't waiting on a rate drop. They're fixing something. Dropping FHA mortgage insurance, paying off high interest debt, getting out of an adjustable rate, or pulling equity instead of selling.

A rate-only refi is a tough sell at these levels. A need-driven one can still pencil. Take your total closing costs and divide by your monthly savings. That's your break-even in months. If it's longer than you plan to stay in the home, skip it. If it's short, it's worth a real look.

Send me your balance, rate, and rough home value at pillarmortgagegroup.com and I'll run the break-even for free. Just numbers, no pressure.

Sources: MBA Weekly Mortgage Applications Survey 10/21/26, Freddie Mac PMMS 10/22/26

Scottsdale's communication-first mortgage broker. Conventional, FHA, VA, DSCR, jumbo, and bank statement loans, with an average close of about 18 days. NMLS #2700076.

10/25/2026

A $400K loan at 3.5% is about $1,796 a month in principal and interest. The same loan at today's rate is about $2,748. That's roughly $950 more every month, and it's the whole story behind the lock in effect.

Freddie Mac's survey on 10/22/26 had the 30 year fixed at 7.32%, up from 6.19% a year ago (Freddie Mac PMMS, 10/22/26). A homeowner sitting on a 3.5% rate isn't being stubborn. They're doing math.

Here's what it means depending on where you are.

If your rate starts with a 3: keep it. A cash-out refinance would swap that rate for today's on your whole balance. If you need cash for a project or debt, ask me about a HELOC or second lien, which leaves your first mortgage alone.

If you bought in the last couple of years at 7% or higher: your refi window is need driven, not rate driven. Dropping FHA mortgage insurance, paying off high interest debt, or getting out of an ARM can still pencil. Break even is closing costs divided by monthly savings.

If you're buying: locked in sellers keep inventory tight, so build your offer around the monthly payment, not just the price.

Send me your balance, rate, and rough home value at pillarmortgagegroup.com and I'll run it free.

Source: Freddie Mac PMMS, 10/22/26. Payments are illustrations only, not a rate quote or offer.

Pillar Mortgage Group is a licensed mortgage broker. Compare lender options, get pre-approved and get clear updates from application through closing.

10/24/2026

What’s really going on?

#2008

10/24/2026

Shopping three lenders for a refinance will not wreck your credit. Shopping them over three months can.

Here's why. Newer FICO scoring models treat mortgage inquiries made within a 45 day window as a single inquiry, and older models use 14 days (myFICO). So compare lenders in one tight stretch, not one lender a month.

A few dos and don'ts I walk my Arizona homeowners through:

Do pull quotes from several lenders within the same couple of weeks. Scoring models expect you to rate shop.

Don't open a new credit card, finance furniture, or buy a car in the middle of a refi. A new account can move your score and your debt to income ratio right when it counts.

Do pay cards down before the lender pulls credit if you can. Lower balances often help the score.

Don't close old accounts right before applying. It can shrink your available credit and push utilization up.

Why it matters now: Freddie Mac has the 30 year fixed at 7.32% (PMMS, 10/22/26), so a refi has to earn its keep. A clean profile means you're ready the day the math works.

Send me your balance, rate, and a rough home value at pillarmortgagegroup.com and I'll show you where your credit sits and what a refi could look like, free.

Sources: myFICO, Freddie Mac PMMS 10/22/26

Pillar Mortgage Group is a licensed mortgage broker. Compare lender options, get pre-approved and get clear updates from application through closing.

10/23/2026

Got a pile of cash and wondering whether to refinance? With the 30 year fixed at 7.32% (Freddie Mac, 10/22/26), a rate-only refi is a tough sell. A recast might be the quieter move.

Here's the difference. A refinance replaces your loan: new rate, new closing costs, new clock. A recast keeps your loan exactly as it is. You make a big lump sum payment toward principal, and the lender re-amortizes the balance over the remaining term. Same rate, same term, lower monthly payment.

Quick illustration: $400,000 balance at 3.5% with about 27 years left. Pay down $50,000 and the payment drops roughly $235 a month. No new rate, no appraisal, no new loan.

What to expect: most servicers want a minimum lump sum (often $5,000 to $10,000) and charge a fee of a few hundred dollars. It's generally a conventional loan option. FHA, VA and USDA loans usually aren't eligible. Your servicer sets the rules, so ask them first.

If you need to change the rate, drop FHA mortgage insurance, switch loan types, or pull cash out, that's refi territory. If you just want a lower payment and you have the cash, a recast is worth a look.

Not sure which fits? Send me your balance, rate and rough value at pillarmortgagegroup.com and I'll run both side by side for free.



Sources: Freddie Mac PMMS 10/22/26; Bankrate and NerdWallet recast guides

Pillar Mortgage Group is a licensed mortgage broker. Compare lender options, get pre-approved and get clear updates from application through closing.