The Weekly Wrap | 5% Is the Line in the Sand, Plus Borrowing From Your 401(k) to Buy a Home

This week I joined a small lunch and learn on appraisal changes, both the ones coming up and the ones already here. Fannie Mae and Freddie Mac are rolling out updated appraisal standards, including the redesigned Uniform Appraisal Dataset (UAD 3.6) and new appraisal report forms. At the same time, more loans are qualifying for an appraisal waiver or an inspection-based appraisal instead of a traditional one.

Why it matters for you: these changes can affect how long a deal takes to close, what an appraisal report looks like when you read it, and whether your buyer needs a full appraisal at all. Knowing which path a loan is on early helps you set expectations with buyers and sellers and avoid surprises close to closing. If you want to know how this could affect a specific deal, reach out and I’ll walk you through it.

Speaking of clients, if any of yours are squeezing in a few showings between trick-or-treat stops this weekend, send them my way. I’m available on weekends and happy to help. I hope everyone has a happy and safe Halloween.

The Federal Reserve held rates steady this week and signaled it’s in no rush to cut. The economy is still strong and inflation is still sticky, and both of those keep mortgage rates from falling much.

There was some help, though. Jitters in tech stocks and lower oil prices pushed some money into bonds, and that helped mortgage rates a little. Freddie Mac’s weekly average dipped for the 30-year and the 15-year.

The number to watch is the 10-year Treasury, which mortgage rates tend to follow. It’s hovering right around 5%. If it breaks clearly below, rates could ease more. If it climbs back above, rates could move up.

“Rates dipped a little this week, but the Fed isn’t cutting soon, so don’t wait for a big drop. If a buyer finds the right home, now is a fine time to get pre-approved and talk to a lender about locking.” Call or text me at (704) 458-0526 and we’ll go through it together.

A lot of buyers have money sitting in their 401(k) and wonder if they can use it for a down payment. The short answer is yes, but there are a few catches they need to know first.

In this video I cover how much they can borrow, why the payment usually doesn’t hurt their approval, the big difference between a loan and a withdrawal, and the part most people don’t know: the interest goes back into their own account.

Watch the video below (tap to play).

Got a question? Hit reply. Whether it’s about a deal, a client, the appraisal changes or this week’s video, I’ll get back to you. Your question might even become next week’s video.

Ian Smith · VP of Lending, Rate

(704) 458-0526 · [email protected] · linktr.ee/thecltmortgageguy · @thecltmortgageguy

Ian Smith, NMLS #1465241 · Equal Housing Lender / © 2026 Guaranteed Rate, Inc. D/B/A Rate · NMLS ID 2611 / Rates shown are illustrative, subject to change, and are not a commitment to lend. Educational only; not legal or tax advice. Loan guidelines vary by program and lender, and not all applicants will qualify.