Weekly Market Update
This week’s story is all about the looming government shutdown and a small bump in mortgage rates. The uncertainty has rippled across the country, flights are being reduced (which, let’s be honest, wasn’t terrible timing for me… I had to extend that anniversary trip by an extra day), and millions of federal employees, including FAA inspectors and air traffic controllers, are feeling the pinch.

What does that mean for housing?
We’ll likely see an impact on consumer spending, a few more mortgage and rent payments running late, and a general dip in consumer confidence. Unemployment ticked up slightly, and while inflation forecasts continue to improve, we’re flying a little blind right now, many of the usual reports we rely on for market guidance aren’t being released during the shutdown.

The good news?
Even with rates inching up, the overall trend lines still point toward lower rates ahead. We’re just not quite there yet, so don’t hold your breath waiting for a “4” to pop up on rate sheets anytime soon.

Bottom line, stay focused on the big picture. Momentum is building for a healthier, more balanced market, and when these temporary bumps clear, buyers who stayed engaged are going to be in a great position to take advantage of improving conditions.

For years, conventional loans had one big, flashing line in the sand: 620 or don’t bother.

As of November 16th? That line is officially erased.

Fannie Mae updated DU (Desktop Underwriter) to evaluate borrowers based on overall risk, not a minimum credit score. And while that sounds dramatic, the real-world impact is a mix of opportunity… and growing pains.

Here’s the real breakdown

Fannie Mae removed the minimum credit score requirement from Desktop Underwriter (DU). Instead, DU will weigh a borrower’s entire risk profile: income stability, payment patterns, assets, LTV, DTI, etc.

This does not mean:

FHFA says the shift is about:

The algorithm decides not a hard cutoff number. We have been doing loans for years with 1 of the 2 borrowers below the 620 mark if the other borrower is above and takes the average over the 620 mark. But just because this line in the sand is no longer, it doesn’t mean that everything approves. Shoot, even things at 660 don’t approve right now if the risk factors outweigh the FICO score.

Keep in mind this is for conventional financing, we have been doing FHA loans down to 500 FICO’s this whole time, with minimum down to 580. And honestly, this will still be the go to loan for anyone with a FICO score in this range because its not heavily penalizing to the interest rate and mortgage insurance cost like a conventional loan is for someone with a 600 score.

So… Good or Bad?

Honestly?
Both.

This change can:

The truth is:
We’ll see the real impact by mid-2026.

But one thing’s certain:
The playbook changed on November 16th — and the lenders and Realtors who move quickly and responsibly will win early.