New appraisal rules start Nov 2, Fed week, free AI class | Monday Moves Oct 26, 2026

This was my Monday update for the week of October 26, 2026, and it was a busy week to be watching rates.

Two things were on the calendar. First, earnings week for some of the biggest tech stocks. Rates had been getting some help from selling in the stock market, because money moving out of stocks and into safer places is what helps mortgage rates. If the tech results disappointed, we could see more of that. Second, it was Fed week. The meeting started Tuesday and the result came Wednesday. I thought there was a pretty good chance the Fed could hike in December, but if the stock market and the data showed the economy slowing, we might see a pause instead. I told people to watch through Wednesday to get a feel for where rates were headed for the rest of the year.

The topic I care most about is the appraisal change. If you are an agent and you are not sure what UAD is, it is the biggest change to the way an appraisal is done since Dodd-Frank. I will be honest, I do not think it is a good idea. A lot of appraisers have said they simply will not do it. It takes about three times as long at the inspection, the seller has to gather records many of them do not have, and I expect the cost to the consumer to double or triple. The agencies' deadline was November 2, 2026, with a temporary exception for lenders that were not ready. Some lenders are adopting it right away. We talked with everyone we work with, and we are delaying it until March. My advice is simple. If you are going into a transaction, ask your lender whether they are doing a UAD appraisal or delaying it. If they are doing it, brace for impact.

My deal of the week was a fixed rate second. We do a lot of HELOCs, and we have one that has closed in about 24 hours. I think our fastest was around six hours, though timing always depends on the file. But some people do not want an adjustable rate on a line of credit. The fixed rate second is for them. We also have a non-owner-occupied version for an investor who has a property with a lot of equity and a very low rate on the first mortgage, but complicated taxes. We can qualify those borrowers with common sense underwriting, without looking at their tax returns. A lot of investors have taken advantage of it, because access to capital is hard right now and capital can be expensive.

One more note. As I said that week, people were falling behind on consumer debt at the highest rate since 2010. That tells me the economy is softening, and I have said in many of these videos that seeing inflation come down is the key to seeing mortgage rates come down. There are some good signs that it is starting to happen.

If you are a Redding or Shasta County homeowner thinking about tapping equity, take a look at our equity lending options, or get your rate. MortgageOne is now licensed in 49 states.