Blog – Fred Gruber - First Rate Financial Group

31

Aug

Financial Reports

What’s Ahead For Mortgage Rates This Week – August 31st, 2026

The PCE Index has remained above the Federal Reserve’s target and continues to be the Federal Reserve’s preferred measure for tracking inflation. Although the latest reading was not significantly above expectations, when considered alongside a number of other factors, it could contribute to the potential for a rate increase, particularly as the PCE Index has repeatedly come in higher than expected in recent months.

At the Jackson Hole Symposium, the Federal Reserve commented that it remains committed to bringing inflation back to its 2% target. The Fed additionally stated that it would no longer provide forward guidance on future rate decisions, signaling a change in its communication approach going forward.

PCE Index
The U.S. PCE price index rose 0.4% month-over-month in May 2026, matching April’s increase and coming in below market expectations of a 0.5% advance. Goods inflation eased to 0.4% from 0.7%, while services inflation rose to 0.5% from 0.3% in each of the previous two months.

The core PCE index, which excludes food and energy, increased 0.3%, the same as an upwardly revised 0.3% in the previous month and in line with market forecasts. On an annual basis, headline PCE inflation accelerated for a third consecutive month to 4.1% from 3.8%, in line with expectations and marking the highest level since April 2023.

Core PCE inflation edged up to 3.4% from 3.3%, also in line with forecasts and reaching its highest level since October 2023. At its June 2026 meeting, the Federal Reserve raised its inflation forecasts, projecting PCE inflation at 3.6% and core PCE inflation at 3.3% for the year, both remaining well above the central bank’s 2% target.

Primary Mortgage Market Survey Index

15-Year FRM rates saw an increase of 0.03%, bringing the current rate to 5.98%.
30-Year FRM rates saw an increase of 0.01%, bringing the current rate to 6.66%.

MND Rate Index

30-Year FHA rates saw an increase of 0.04%, with current rate at 6.37%.
30-Year VA rates saw an increase of 0.02%, with current rate at 6.37%.

Jobless Claims
Initial Claims were reported to be 225,000 compared to the expected claims of 205,000. The previous week landed at 209,000.

What’s Ahead
Non-farm Payrolls are set to be the highest-impact data release in the week ahead, with unemployment and manufacturing data also set to follow.

28

Aug

By Fred Gruber

Mortgage Tips

What Homeowners Should Know Before Removing Mortgage Insurance

Mortgage insurance can make homeownership accessible with a smaller down payment, but many homeowners eventually wonder whether it can be removed. The answer depends on the type of mortgage you have, your loan balance, property value, payment history, and the rules that apply to your specific loan.

Understanding those factors can help you know what questions to ask your loan servicer.

Start by Identifying Your Loan Type
Mortgage insurance does not work the same way for every mortgage program. Conventional loans may have private mortgage insurance, commonly called PMI, while government-backed loan programs can have different types of mortgage insurance and different rules regarding how long it remains in place.
Before making plans, identify your loan type and review the requirements that apply to it.

Equity Can Play an Important Role
For certain conventional mortgages, the relationship between your remaining loan balance and the home’s value can affect when PMI may be eligible for cancellation.

Equity may increase as you pay down your mortgage or as your property value changes. However, an increase in estimated market value does not automatically mean mortgage insurance will immediately disappear.

Payment History May Matter
Your servicer may review whether your mortgage payments have been made on time before approving certain cancellation requests.

Other requirements may also apply depending on the loan, including seasoning periods, property condition, or confirmation that there are no additional liens against the home.

An Appraisal May Be Required
If you believe increased property value has created enough equity to request removal, your servicer may require a new valuation or appraisal.

Do not order one independently before contacting the servicer. Ask what process and documentation are required so you do not pay for something that will not satisfy their requirements.

Contact Your Loan Servicer
Your servicer can explain the rules associated with your specific mortgage, including whether mortgage insurance can be removed and what steps are necessary.

Mortgage insurance is an important part of many home purchases, but it does not always remain forever. Understanding your loan and monitoring your equity can help you recognize when it may be appropriate to explore your options.

27

Aug

By Fred Gruber

Mortgage Tips

How a Large Down Payment Can Affect More Than Your Monthly Payment

When buying a home, it is natural to assume that putting as much money down as possible is always the best financial decision. A larger down payment can provide meaningful advantages, but it also affects more than the size of your monthly mortgage payment. Understanding the broader impact can help you decide how much cash makes sense to use at closing.

A Larger Down Payment Reduces the Amount You Borrow
The most obvious benefit is a smaller loan balance. Borrowing less generally means a lower principal-and-interest payment and less interest paid over the life of the loan, assuming the other loan terms remain the same. Depending on the mortgage program and down payment amount, it may also affect mortgage insurance requirements.

It Can Change Your Loan Options
Down payment size may influence the mortgage programs, pricing, or terms available to you. Different loan products have different requirements, so it is worth discussing several scenarios with your mortgage professional rather than automatically choosing one down payment amount.

Consider the Cash You Will Have Left
Putting additional money into a home means that money is no longer readily available for other expenses.
Closing costs, moving expenses, furnishings, repairs, and unexpected homeownership costs can arrive quickly after closing. Maintaining adequate savings may be more valuable to your household than using every available dollar to reduce the mortgage.

Think About Other Financial Priorities
Your available cash may also be competing with higher-interest debt, emergency savings, retirement contributions, investments, education expenses, or other goals. The appropriate down payment should be considered within your complete financial picture rather than as an isolated decision.

Compare Multiple Scenarios
Ask your mortgage professional to show you how different down payment amounts affect the loan balance, estimated payment, mortgage insurance when applicable, and cash needed at closing. Seeing the numbers side by side can make the tradeoffs much easier to understand.

A larger down payment can be a powerful financial tool, but bigger is not automatically better for every buyer. The goal is to find a balance that creates an affordable mortgage while leaving you financially prepared for everything that comes after you receive the keys.