📡 VA SPOTLIGHT — PIKES PEAK EDITION
What agents need to know right now
Bankrate's national average for a 30-year VA purchase loan reached 7.19% on October 4, up from 6.50% on September 2, after the Fed raised its benchmark rate a quarter point to 3.75% to 4.00% on September 16. On a $400,000 loan, that increase adds about $184 a month in principal and interest, so re-run every payment you quoted in August. Fannie Mae and Freddie Mac now require a full association review on most conventional condo loans, so any VA buyer considering a condo should have their lender check VA's approved condo list as early as possible. Some lenders already apply a higher 2027 loan limit to VA loans, which could put more home within reach at standard, non-jumbo rates.
The Fed's vote was 12 to 0, and its statement calls inflation elevated and says the hike should speed the return to 2%. The Fed's projections point to one more quarter-point increase before year end, and the committee meets again October 27 - 28. Any VA buyer with a floating rate and a November closing should have the lock conversation before that meeting.
📊 MARKET PULSE
Prices have fallen every month since May, and sales are falling too
The Colorado Springs area sold 996 single-family and patio homes in August, down 12.3% from July and 4.1% from August 2025, the third straight monthly decline, per PPAR data. Active listings slipped 0.5% from July to 4,297 but stayed nearly 4% above last August, so inventory has stopped climbing from month to month without shrinking.
The August median price was $470,000, down 5% from $494,950 in July and down 2% from August 2025, and it has fallen every month since the May peak of $499,952. The zero-down structure hasn't changed for a VA buyer, but the payment has, so price and seller-paid costs now carry more weight during the negotiation.
Source: The Gazette, "Colorado Springs housing market shifts toward buyers," October 4, 2026, citing Pikes Peak Association of REALTORS® data
💹 RATE TABLE
Current VA Loan Rates: National Averages
Loan Type | Interest Rate | APR | Since Sept. 2 | Notes |
|---|---|---|---|---|
30-Year Fixed VA Purchase | 7.19% | 7.24% | +0.69 | No PMI, Zero-down |
30-Year Fixed VA Refinance | 7.24% | 7.27% | +1.01 | Streamline refi; No appraisal required |
30-Year Fixed Conventional | 7.28% | — | +0.62 | Freddie Mac PMMS, week of 10/1/26 |
VA rates reflect national averages as of October 4, 2026 per Bankrate's weekly lender survey. Conventional figure per Freddie Mac's Primary Mortgage Market Survey (change measured from the week of 8/27). Rates change daily and are not a commitment to lend. Your clients' actual rate will depend on credit profile, loan amount, property type, and individual file characteristics. Contact Gene for current pricing.
Gene Richter, NMLS #2806488 · PBT Bancorp, NMLS #257781
🏠 Equal Housing Opportunity
IRRRL Viability
Based on the current VA refi rate of 7.24%, the estimated minimum viable existing mortgage threshold is around 8.33%. In other words, if your existing mortgage rate is 8.33% or higher, an IRRRL is likely worth the closing costs on a straight math basis. This assumes 2% closing costs plus a 0.5% funding fee spread, and that the borrower doesn't extend the existing loan term (VA's own Net Tangible Benefit test is separate and has its own criteria; confirm the file meets it independently before moving forward). For model assumptions and to personalize borrower variables, use the IRRRL Viability calculator at my website HERE.
💼 THE FINE PRINT
Conventional Condo Loans Got Harder on August 3. VA Runs Its Own Gate.
Fannie Mae and Freddie Mac retired their streamlined condo reviews for conventional loan applications dated on or after August 3, 2026, so lenders now run a full review of the association's finances, reserves, and insurance on most condo purchases. Pikes Peak REALTORS' chair told KOAA that lenders expect the added review to add seven to 14 days to many closings. El Paso County's July condo and townhome median price was $305,000, with 680 listings, up 8% from June. The reserve minimum rises from 10% to 15% of the association's budget for applications dated January 4, 2027 and later.
VA is a separate gate, not an easier one. VA approves the whole condo project, not individual units, and a project missing from VA's list needs the lender to submit it, which can take weeks if the HOA is slow with documents. If your buyer is considering a condo, their lender must review VA's list as early in the process as possible, and I can help with that if your buyer needs it.
🏠 THE BROKER ADVANTAGE
2027 Loan Limits Are Rising, and Some Lenders Aren't Waiting
Loan limits are increasing for 2027, which could put more home within reach at standard, non-jumbo rates. The FHFA announces the official limit in November, but some lenders already apply a higher one to VA loans. UWM, for example, now uses $847,440, up from $832,750.
The early limit helps veterans with full entitlement first. Purchases that rely on bonus entitlement will have to wait for the official limit to see the benefit.
Source: HousingWire, "Pennymac, UWM raise conforming loan limits ahead of FHFA update," September 16, 2026
🗣️ SCRIPT OF THE MONTH
When a Buyer Says “I Already Have a VA Loan”
The situation: Your buyer is relocating to Colorado Springs and still owns a home with a VA loan on it, and says the VA benefit is used up.
What most agents say: "I'm not sure how that works. You'd have to ask a lender."
What you should say instead: "You can usually still use your VA benefit. How much depends on what your old loan is holding, so let's get your remaining entitlement number first. That tells us the price we can buy with nothing down, and what a small down payment would add if we go above it."
Why this works: The first answer sends the buyer away without a next step. The second corrects the most common misunderstanding with a concrete task, and it doesn't promise a price range before a lender has run the entitlement math.
Source: VA Circular 26-25-10
Use this word-for-word or make it your own. The goal is confidence and momentum.
👋 PARTING THOUGHTS
Before the Fed's October 27 - 28 meeting, make sure every buyer with a November closing has talked with their lender about locking. At your next client intake, ask military buyers about an earlier VA loan before you talk price. Best wishes for a successful fall season; contact me with any questions or for VA loan assistance.
— Gene Richter, Licensed Mortgage Loan Originator NMLS #2806488 · PBT Bancorp NMLS #257781 · Colorado Springs, CO (719) 722-4278 · VASpotlight.com
🏠 Equal Housing Opportunity | This newsletter is intended for real estate professionals and does not constitute a consumer credit advertisement. Rates shown are national averages for informational purposes only and are not a commitment to lend. Not all borrowers will qualify. This content does not constitute tax, legal, or financial advice — consult a qualified professional for guidance specific to your situation. Gene Richter is a licensed Mortgage Loan Originator (NMLS #2806488) operating through PBT Bancorp (NMLS #257781), licensed to originate mortgage loans in Colorado.