📡 VA SPOTLIGHT — PIKES PEAK EDITION
What agents need to know right now
The Fed meets September 15 and 16, and this time the outcome isn't a formality. After holding its benchmark rate at 3.50% to 3.75% through five straight meetings, the Federal Open Market Committee split 9-3 at its July session, with three governors pushing for a hike instead of another hold. Chair Kevin Warsh, who took over from Jerome Powell in May, used his Jackson Hole remarks in August to flag that underlying inflation isn't cooling the way the Fed had hoped.
None of this guarantees a rate move. But the split vote is the real story. For most of the past two years, the debate was about when to cut, not whether to raise. That shift alone is worth passing along to a VA buyer sitting on a lock decision. Mortgage rates track the 10-year Treasury more closely than the Fed's overnight rate, but Treasury yields move on Fed signals well before the meeting itself.
For a buyer with a file ready to close, locking ahead of September 16 removes a variable that's genuinely harder to call this cycle than it's been in years. For a buyer still shopping, that's worth a conversation now, not after the announcement.
📊 MARKET PULSE
El Paso County's market keeps softening, and that's leverage for your VA buyers
Colorado Springs sold 1,766 homes in July, up 3.7% year over year, but inventory has stopped climbing for two straight months after a long run-up. Days on market reached 48, a 21% jump from a year ago, and county supply sits at 3.8 months, still short of the six-month mark that usually defines a balanced market, but soft enough that it doesn't feel that way on the ground. Median home price came in at $497,475, down 1% from last year and essentially flat for four years running.
None of that signals distress. It's a market shifting toward buyers, and a VA buyer with a strong offer and no down payment requirement is in a better negotiating position here than in years. Worth mentioning to a seller who assumes a VA offer needs extra concessions to compete.
This Week in VA Rates: El Paso County
30-Year VA Purchase: 6.50% (up from 6.49% last week)
30-Year VA Refinance: 6.23% (up from 6.22% last week)
30-Year Conventional: 6.66% (Freddie Mac PMMS, week of 8/27)
NEW: IRRRL Viability
Based on the current VA refi rate of 6.23%, the estimated minimum viable existing mortgage threshold is around 7.34%. In other words, if your existing mortgage rate is 7.34% 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.
Source: Bankrate, September 2, 2026, and Freddie Mac PMMS
💼 THE FINE PRINT
A Change That Could Quietly Fix a DTI Problem
VA revised how lenders count old unpaid collection accounts against a borrower's debt-to-income ratio. Change 47 to VA Pamphlet 26-7, effective August 25, moved through without much notice outside compliance circles, but it matters for buyers.
Previously, a non-medical collection account with no payment plan counted at 5% of its balance as a monthly debt. On a $6,000 collection, that's $300 a month working against DTI. Under Change 47, lenders now divide that 5% by 12, so the same $6,000 collection counts as roughly $25 a month.
That's the difference between ratios that need explaining and ratios that clear cleanly. If a buyer got declined for DTI in the past year and the file included an old, unpaid collection account, it may be worth running the numbers again.
🏠 THE BROKER ADVANTAGE
A Buydown Doesn't Change What Your Buyer Qualifies For
With the Fed meeting mid-month and rates genuinely uncertain, expect more sellers to offer temporary rate buydowns to keep deals moving. Worth knowing what a 2-1 buydown actually does and doesn't do.
A 2-1 buydown lowers the buyer's payment by roughly 2% in year one and 1% in year two, funded by an escrow account the seller typically pays into at closing. That's real payment relief. What it isn't is a way to qualify a marginal buyer. VA still underwrites the file at the full note rate, not the temporarily reduced one, so a buydown does nothing for a DTI or residual income problem sitting on the file today.
Direct-to-consumer lenders sometimes lead with a buydown as if it solves a qualification issue. It doesn't. If a buyer's numbers are tight, the fix is on the underwriting side, structuring the concession as permanent points instead, or working the residual income analysis the way Change 47 above and last month's DTI piece both point to. A buydown is a comfort tool, not a qualifying one.
💹 RATE TABLE
Current VA Loan Rates — El Paso County
Loan Type | Interest Rate | APR | Notes |
|---|---|---|---|
30-Year Fixed VA Purchase | 6.50% | 6.56% | No PMI, Zero-down |
30-Year Fixed VA Refinance | 6.23% | 6.34% | Streamline refi; No appraisal required |
30-Year Fixed Conventional | 6.66% | — | Freddie Mac PMMS, week of 8/27/26 |
VA rates reflect national averages as of September 2, 2026 per Bankrate's weekly lender survey. Conventional figure per Freddie Mac's Primary Mortgage Market Survey. 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
🗣️ SCRIPT OF THE MONTH
When a Buyer Wants to Wait for Rates to Drop
The situation: Your VA buyer wants to pause house hunting until rates come down, especially with the Fed meeting on September 16.
What most agents say: "Rates might drop, but nobody really knows, so it's your call."
What you should say instead: "Here's what's different this time. For most of the past two years, the debate was about how much the Fed would cut. This month, three Fed governors actually voted for a hike instead of another hold. That's not a signal rates are about to fall, if anything it says the opposite is just as possible. If you find a home you want, locking in now removes that guesswork instead of betting on it."
Why this works: The first version treats rate timing as a coin flip the buyer has to call alone. The second gives them a specific, current fact, the July dissent vote, that reframes waiting as a real risk instead of a safe default, without promising what rates will actually do.
Use this word-for-word or make it your own. The goal is confidence at the listing table.
👋 PARTING THOUGHTS
If a buyer's file is ready and they're waiting on a hunch about rates, this is the month to have that conversation before the 16th, not after. This softening could run well into 2027, and buyer leverage will likely keep building through the winter. Rushing a bad deal still gets a bad deal. But for the right buyer, this could be a great entry point if the sale price is right.
— 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.