Relief! Market Volatility Eases and Rates Improve 📈➡️📉

After a few rollercoaster weeks, things are finally starting to settle a bit—but don't blink, because there's still plenty going on! Rates are improving, big changes are brewing in the student loan world, and property tax reform is gaining steam. Let’s jump into this week’s market update!

Read time: ~4 minutes

Rates ended LOWER compared to last week, and volatility was LOW. Rates are in the high 6% range for most loan types without paying discount points. Paying discount points can get you in the mid 6’s.

Relief! Market Volatility Eases and Rates Improve 📈➡️📉

The past few weeks have been anything but smooth in the mortgage world. Between wild swings in the bond market and nonstop headlines, it’s been a rollercoaster. As many of you know, I’m a bit obsessive about tracking the market minute-by-minute — but it’s not just for fun. Staying dialed in to these moves lets my team and me guide our clients with real-time advice on locking rates and protecting their home financing goals.

Finally, this past week brought the break we needed: rates started drifting lower! One of the major reasons? A shift in tone from President Trump regarding Fed Chair Jerome Powell. Last week, Trump wasn’t exactly holding back when asked if he’d fire Powell:

Reporter: Powell says he won't leave even if you ask him to.
Trump: Oh, he’ll leave. If I ask him, he’ll be out of here... I'm not happy with him. If I want him out, he’ll be out of there real fast. Believe me.
Reporter: Are you trying to remove him?
Trump: Yeah, next question.

Markets did NOT like that response — mortgage rates immediately spiked to their highest levels.

Fast forward to the end of last week: Trump completely reversed course, telling reporters, "I have no intention of firing him (Powell).”

Whether that pivot was political strategy or damage control doesn’t matter—the market breathed a sigh of relief, and mortgage rates started easing back down.

Are Property Taxes Finally Getting the Ax? 🪓🏡

We’ve all heard the old saying, “two things are certain in life: death and taxes.” And as much as we might grumble, most taxes make sense—they fund roads, schools, police, and a ton of other things we depend on every day.

But if there’s one tax I’ve always struggled to fully wrap my head around, it’s property taxes. Think about it for a second: you earn your paycheck (taxed), buy a house (taxed again), and then every year, you pay taxes just for the privilege of keeping your house—often at a rate that just keeps going up, no matter how your property looks or its condition.

It’s one of those things we've just accepted, but that could soon be changing...

Right now, several states are seriously looking at either drastically reducing or completely eliminating property taxes. Florida, Pennsylvania, and North Dakota are among the states making big moves. The reason? Skyrocketing home values have made these taxes unbearable for many homeowners.

But here’s the big catch: Where does that missing tax money come from? Some proposals suggest higher sales taxes, tapping into oil and gas revenues, or even raising income taxes. Each idea has its own downsides, especially for lower- and middle-income earners who could feel an even bigger pinch.

In Pennsylvania, a proposal to eliminate property taxes entirely by 2030 sounds great on paper—but they still haven’t figured out how to fill a massive $23 billion gap.

Here’s how I see it:

As appealing as it sounds, completely getting rid of property taxes probably isn’t realistic. They account for about 73% of local government revenue, funding schools, police, and emergency services—things our communities rely on daily.

A more sensible solution? Comprehensive reform. Rather than scrapping property taxes altogether, let’s make the system fairer and more sustainable. Because at the rate we’re going, property taxes and insurance premiums will soon outpace our actual mortgage payments, and that’s just not sustainable.

Another Big Student Loan Change You Need to Know About 📚🚨

I know we’ve been talking about student loans a lot lately, but with another major update just announced, it’s something you and your clients need to know.

We already know COVID-era forbearance officially ended and monthly payments are back. Now, here’s the big news: collections on defaulted federal student loans are restarting.

Starting in May, the Department of Education will resume collection efforts for borrowers who are in default. That means things like wage garnishments and tax refund seizures are coming back after a five-year pause.

And if you think this won't affect the real estate world...think again.

Below is a quick look at how a delinquent student loan can negatively affect a credit score:

Also, borrowers with federal student loans in collections will NOT be able to qualify for FHA, VA, or USDA loans until those debts are resolved. It’ll show up on their credit reports and instantly disqualify them.

Here’s how borrowers can fix it:

🔹 Loan Rehabilitation: Make nine consecutive on-time payments.
🔹 Loan Consolidation: Roll old debts into a new good-standing loan.
🔹 Pay It Off: (The cleanest option if financially possible.)

Why This Matters Right Now:

If someone waits until they find the perfect home to deal with this, it could delay their ability to close by nine months or more!

Two Ways My Team & I Can Help

1. Lets collaborate- Schedule a zoom meeting

2. Tough Deal? Let us know if we can help