Blog — Fred Gruber - First Rate Financial Group

19

Oct

Financial Reports

What’s Ahead For Mortgage Rates This Week – October 19th, 2026

Inflation numbers are in and came in much higher than expected. Even the core inflation numbers for both reports were higher than anticipated. Core inflation is intended to exclude some of the most volatile components, including food and energy costs, painting a picture in which the Federal Reserve will need to continue its tightening measures until inflation is under control.

In particular, the Producer Price Index (PPI) showed a significant increase above expectations, impacting businesses and potentially trickling down to consumers over time. The retail sales report also confirms that consumers have significantly slowed their purchases compared to the previous month.

Consumer Price Index
The annual inflation rate in the US rose to 4.2% in May 2026, its highest level since April 2023, up from 3.8% in April and in line with market expectations. This marked the third consecutive month of accelerating headline inflation, with energy costs jumping 23.5% (compared to 17.9% in April), driven by the energy shock triggered by the conflict with Iran. Gasoline prices soared 40.5%, following a 28.4% increase in April, while fuel oil prices climbed 58.9% (vs. 54.3%). Inflation also accelerated for shelter (3.4% vs. 3.3%) and food (3.1% vs. 2.3%).

On a monthly basis, the CPI increased 0.5%, slightly below April’s 0.6% rise and in line with forecasts. Energy prices rose 3.9%, accounting for more than 60% of the monthly increase.

Meanwhile, the annual core inflation rate edged up to 2.9%, its highest level since September 2025, compared to 2.8% in April and matching market expectations. However, on a monthly basis, core CPI rose just 0.2%, down from 0.4% in April and below forecasts of 0.3%.

Producer Price Index
U.S. producer prices rose 2.7% year-on-year in March 2025, easing from a 3.2% increase in February and coming in below market expectations of a 3.3% rise. This marked the smallest annual gain in producer prices since September. On a monthly basis, prices fell 0.4%, following an upwardly revised 0.1% increase in February and missing forecasts for a 0.2% gain, largely driven by a sharp drop in energy costs. Despite the pullback, producer prices are expected to trend higher in the coming months due to the impact of new tariffs.

Primary Mortgage Market Survey Index

15-Year FRM rates saw a decrease of -0.02%, bringing the current rate to 6.71%.
30-Year FRM rates saw no change from last week, leaving the current rate at 7.40%.

MND Rate Index

30-Year FHA rates saw a decrease of -0.16%, with the current rate at 6.99%.
30-Year VA rates saw a decrease of -0.16%, with the current rate at 7.01%.

Jobless Claims
Initial Claims were reported to be 199,000 compared to the expected claims of 200,000. The previous week landed at 198,000.

What’s Ahead
A very light week for next week with the recent rush of inflation and job-related data. This will leave the Michigan Consumer Sentiment as the most impactful data release.

16

Oct

By Fred Gruber

Mortgage Tips

Can You Get a Mortgage on a Home That Has Been Moved From Another Location?

Most buyers assume that the home they are purchasing has always been located on its current property. However, some houses have been physically relocated from one location to another.

Whether a historic home was preserved by moving it or an existing structure was transported to a new lot, the property’s relocation history can create unique questions during the mortgage process.

Why Would Someone Move an Entire House?
Moving an existing home is more common than many people realize, particularly in areas where older houses are preserved or land is being redeveloped.

Instead of demolishing a structure, an owner may hire specialized contractors to lift the house, transport it, and place it on a new foundation.

In other situations, a house may be relocated to make room for construction or to preserve a building with historical significance.

Although the home may look completely normal once the project is finished, its relocation history can still be relevant when applying for financing.

The Foundation Can Be an Important Factor
When a home is moved, it generally must be placed on a suitable foundation at its new location.

Mortgage lenders and appraisers may need to evaluate whether the foundation and structure meet applicable requirements.

Depending on the property and loan program, additional documentation may be requested regarding the foundation, building permits, inspections, and completed relocation work.

Buyers should not assume that a home is automatically eligible for financing simply because it has been occupied since the move.

Property Records May Need Clarification
A relocated house may have a construction history that differs from the records associated with its current lot.

For example, the house may have been originally built decades earlier but moved to its present location much more recently.

The lender or appraiser may need to understand the difference between the original construction date and the date of relocation.

Permit records, certificates of occupancy, and other local documentation may help establish that the relocation was completed appropriately.

Missing or inconsistent information could lead to additional questions before the mortgage is approved.

Appraising a Relocated Home
Determining market value may also require careful consideration.

The appraiser evaluates the property in its current location and condition, rather than relying solely on what the structure may have been worth before it was moved.

Factors such as the foundation, overall condition, neighborhood, available comparable sales, and quality of completed work can influence the valuation.

A relocated house is not automatically worth less, but unusual property characteristics may require additional analysis.

What Buyers Should Do Before Applying
Buyers interested in a relocated home should ask when the move occurred, who performed the work, and what documentation is available.

They should also discuss the home’s history with their mortgage professional before committing to a financing timeline.

For buyers who appreciate unique or historic properties, a relocated home can offer considerable charm. The key is understanding the property’s history and confirming that its current condition and documentation support the intended mortgage financing.

15

Oct

By Fred Gruber

Mortgage Tips

Why a Mortgage Lender May Question a Property With More Than One Parcel

Imagine finding a beautiful home that comes with an extra piece of land next door. Perhaps the additional lot provides more privacy, a larger backyard, or room for future improvements.

While this may sound like an attractive bonus, purchasing a home that includes multiple parcels can introduce mortgage questions that buyers might not expect.

What Does It Mean to Have Multiple Parcels?
A parcel is a legally identified piece of land, typically assigned its own property identification number by the local taxing authority.

Most residential properties consist of one parcel containing the house and surrounding land. However, some homes are marketed with two or more parcels that are being sold together.

For example, a seller might own a house on one parcel and an adjoining vacant lot on another. The two properties may function as one large yard, even though they remain legally separate.

This distinction can matter when a buyer applies for mortgage financing.

Why the Property Configuration Matters
Mortgage lenders need to understand exactly what property will secure the loan.

When multiple parcels are involved, the lender may need to determine whether the parcels can be included in the same mortgage transaction and whether the arrangement meets the loan program’s requirements.

Questions may arise about whether the parcels are contiguous, how they are legally described, and whether the additional land has separate development potential.

The lender may also review whether any parcel contains improvements, structures, or uses that could affect residential financing eligibility.

Simply advertising two parcels together does not automatically mean they can be financed as one property.

The Appraisal May Require Additional Review
An appraisal evaluates the property being offered as collateral for the mortgage.

When a home includes additional land, the appraiser may need to determine how that land contributes to the property’s overall market value.

A separate parcel does not necessarily increase the appraised value by the amount a buyer might expect.

For example, an adjoining lot with limited access or development restrictions may have a different market contribution than a parcel that can support another residence.

Comparable sales and local market conditions help determine how the additional land is valued.

Consider the Long-Term Implications
Buyers should also understand whether the parcels receive separate property tax bills, have different zoning classifications, or carry individual restrictions.

If they eventually want to sell the vacant parcel separately, they may need lender approval or a partial release of the mortgage lien, along with any required local approvals.

Before making an offer, buyers should ask for the parcel identification numbers, legal descriptions, and available property records.

Owning extra land can provide valuable flexibility, but buyers should confirm how that land affects their financing and future plans. Understanding the legal and mortgage implications early can help prevent unexpected complications before closing.