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Mortgage Market Update
Melanie Camargo
Melanie Camargo
Wednesday, October 21, 2026
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What does a rate change really do to your payment |
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Hi there. This week I want to explain something that catches a lot of people off guard: how rate changes affect not just the amount you pay, but where that money actually goes.
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National Mortgage Rates · October 20, 2026
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Conventional 30-Year
7.33%
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Source: Optimal Blue daily mortgage indices via FRED
Rates shown are national mortgage index rates and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.
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Payment Planning
What happens to your payment when rates shift
When interest rates move, it changes what your monthly payment looks like—but the math might surprise you. A rate increase doesn't just mean you pay a little more each month; it can shift how much of that payment goes toward interest versus principal. That matters because principal payments are how you build equity in your home. The flip side is true too: when rates drop, more of your payment can work toward ownership. Understanding this helps you make smarter decisions about timing a purchase, refinance, or even just planning your budget. If you're curious about how current conditions might affect your specific situation, I'm here to walk through it with you. Let's talk about what a rate move means for your payment and your timeline.
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Tip of the Week
Your loan officer can run a credit simulator to show exactly which actions will move your score the most.
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Tips for Homeowners
Year-End Tax & Mortgage Planning
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1.
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Consider making your January mortgage payment in December to get an extra month of deductible interest in the current tax year (consult your tax advisor first).
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2.
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If you plan to sell next year, now is a good time to document improvements — receipts and records add to your cost basis and reduce taxable capital gain at sale.
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3.
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Review your W-4 withholding if you bought a home this year — your mortgage interest deduction may mean you're having too much withheld from each paycheck.
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Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the Melanie Camargo team any time and we'll walk you through your options. |
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