If you’ve been waiting for some good news in the housing market, October might just be your month. After what feels like forever of sky-high rates and impossible qualification standards, things are actually starting to move in the right direction.
Self-Employed Folks Are Getting a Break
Let’s be honest – if you’re self-employed, getting a mortgage has been a nightmare. You know you make good money, the bank knows you make good money, but somehow those tax returns never tell the whole story. Sound familiar?
Well, there’s finally a solution that makes sense. The 1099-Only Mortgage Program lets you qualify using your actual 1099 income instead of jumping through tax return hoops. You can use one or two years of 1099 documentation, get competitive rates, and actually close on time. It’s designed for real estate agents, freelancers, consultants, and anyone else who’s tired of being treated like a second-class borrower just because they don’t get a W-2.
This is huge for the growing number of Americans working independently. If you’ve been putting off buying because the paperwork seemed impossible, this might be the game-changer you needed.
Refinancing is Having a Moment
Remember all those people who bought homes in 2023 and early 2024 when rates were brutal? They’re not stuck anymore. Refinance applications are up 198% from last year, and for good reason – people are saving serious money.
The process has gotten much smoother too. Many lenders are waiving fees and skipping appraisals where they can, which means faster closings and less hassle. If you bought in the past couple of years and haven’t looked at refinancing lately, it’s probably worth a phone call. We’re talking about hundreds of dollars in monthly savings for a lot of homeowners.
The Numbers Don’t Lie
Purchase applications are up 14% compared to last year. That might not sound earth-shattering, but in this market, it’s actually a big deal. Buyers are coming back, which means they’re seeing opportunities they didn’t see before.
Here’s what’s interesting about the economic picture right now: job growth is slowing down, and unemployment claims are ticking up slightly. Usually that would be bad news, but in our current situation, it’s actually helping. A cooler job market tends to bring down bond yields, and that’s exactly what we’re seeing with mortgage rates.
It’s one of those weird economic moments where bad news is kind of good news – at least if you’re trying to get a mortgage.
The Government Shutdown Wrinkle
Of course, there’s always something to worry about. The current government shutdown could throw some wrenches into the works, depending on how long it drags on. Most economists think it’ll wrap up in two to three weeks, which shouldn’t be a huge problem.
But if it goes longer, here’s what could get messy: the IRS might be slow to process those tax transcript requests that lenders need for income verification. FHA, VA, and USDA loans might take longer to process with reduced federal staffing. And we might not get the economic reports that help predict where rates are heading, which could make things more volatile.
The good news is that most lenders are staying on top of this and working around potential delays. A short shutdown shouldn’t derail your mortgage plans.
What’s Coming Next
We’ve got some important dates on the calendar that’ll tell us where this is all heading. The inflation report comes out October 15, jobs numbers drop November 1, and the Fed meets November 6-7. These reports will give us a much better idea of whether this improvement in mortgage conditions is going to stick around.
If inflation keeps cooling off and job growth stays moderate, we might actually be looking at the start of a real rate improvement cycle heading into next year. That’s the kind of news the housing market has been waiting for.
The Real Story
Look, nobody’s saying we’re back to the good old days of 3% rates and easy qualifications. But October 2025 feels different than the past couple of years. There are more options for borrowers who couldn’t qualify before, current homeowners are finding real savings through refinancing, and buyers are starting to see opportunities again.