Traditional & Non-Traditional Mortgage Solutions

MORTGAGE RATES: WEEK OF 1/12/2025 

🏠 FHA: 5.5% Rate (APR ~5.62%)

FHA allows as little as 3.5% down up to a $1.2M loan amount.

📄 Conforming: 5.99% Rate (APR ~6.235%)

Conforming allows as little as 3% down up to $833k, or 5% down up to $1.25M loan amount.

🏦 Jumbo 7/ARM: 5.5% Rate (APR ~5.71%)

Jumbo loans are required above $1.2M, but rates can be more competitive with strong credit/reserves.

🧾 Bank Statement Loan: 6.5% Rate (APR ~6.762%)

Perfect for self-employed borrowers who can’t qualify with tax returns.

What is APR? Basically, APR is how lenders communicate the cost of a loan so you can compare between lenders. It's not the rate your payment is based on.  

Mortgage Market Update — This Week

Mortgage rates are mostly holding steady after a volatile start to the year. Markets are still digesting inflation data and mixed economic signals, which means lenders are pricing cautiously rather than aggressively moving rates up or down.

What to watch next:

Mortgage Reality Check — What Actually Matters Right Now

1. 10-year Treasury: If it stays under 4.15%, rates can improve. If it pops higher, rates worsen fast.
2. Inflation details: Rent and services costs matter more than the headline number. If those stay hot, rates won’t drop.
3. Fed talk: One “rates stay higher” comment from the Federal Reserve can undo a good week for rates.
4. Jobs softening: Quiet signs of slower hiring help rates more than flashy headlines.

What to do:
Rates aren’t crashing. They’re moving in short windows. Lock when you get a dip instead of waiting for perfect timing.

Helpful takeaways for buyers & agents:

Rates aren’t crashing, but small dips are happening, timing and locking strategy matter.
Buyers waiting for “perfect” rates may miss negotiation leverage that exists right now.
Adjustable-rate and nontraditional options can still make sense depending on the plan and timeline.

Bottom line: expect sideways movement with short-term opportunities, not a straight line down.

Derek Vail | NMLS #1233953 | Equal Housing Lender .