I. Are Appraisers Giving Bigger Condition Adjustments in 2026?
There is a neighborhood about a mile west of my CA home that crashes when the market slows.
I blog about it often, in fact, because it is near a very busy freeway. Buyers are willing to overlook freeway noise when markets are hot, and inventory is scarce, but not at all when the market softens.
Appraiser Ryan Lundquist recently posted this blog: ARE APPRAISERS GIVING BIGGER CONDITION ADJUSTMENTS IN 2026? And the answer is yes because buyers are and can be far more demanding in slower markets.
This is the case for all adverse issues affecting a property – poor condition, lack of updates, deferred landscaping, poor curb appeal, or adverse exterior influences (nearby traffic, commercial or industrial areas, schools, etc.).
Sellers and agents should expect larger adjustments for adverse issues in slower markets.
II. WSJ Misleads Again; Why You’re Probably Not Overpaying for Your Mortgage!
I have a friend in the hinterlands of South Carolina who is honest to a fault, and who runs an extremely successful branch of a mortgage company.
His loan amounts are tiny compared to JVM’s, and the average credit score of his borrowers is probably 100 points lower than JVM’s.
As a result, his “average rate” is substantially higher than JVM’s. So, the WSJ might be very confused to hear that he is renowned for his integrity and that he is continually buried in business, irrespective of market conditions.
The WSJ recently published this: Why You’re Probably Overpaying for Your Mortgage (shout out to MBS Highway for illuminating and shredding it today).
The WSJ shared research from Bankrate.com indicating that borrowers collectively pay $65 billion in avoidable mortgage costs every year.
What the WSJ failed to mention is that Bankrate benefits enormously from skewed data that encourages borrowers to shop for mortgages because Bankrate sells leads generated by that shopping.
Trusting Bankrate with this data is like trusting tobacco companies telling you that cigarettes are good for you.
The biggest irony is this – these studies typically benefit JVM Lending, as our rates are almost always lower than the average or benchmark rates published by the usual suspects (Freddie Mac, Mortgage News Daily, Mortgage Bankers Association).
But I am going to defend other loan officers today.
First and foremost, I am certain that Bankrate’s comparisons do not account for “The 18 Factors That Impact Your Mortgage Rate.”
A first-time homebuyer with a 680-credit score buying a condo with 5% down will get an interest rate as much as 1% lower than a non-first-time homebuyer with those same criteria.
Loan amount, credit score, lock periods, property types, refi vs purchase, first-time homebuyer status, loan type, down payment assistance, property location, and more can all significantly impact someone’s interest rate.
In addition, many borrowers with short time horizons or who are short on cash will request large lender credits to help cover closing costs. These credits come with higher rates, but the full credits are not reflected in Bankrate’s data.
And lastly, about 40% of our loans are extremely complex nowadays (particularly in our higher-end markets). Good luck taking those loans to a call center loan officer with 15 minutes of training and the lowest advertised rate; they’ll die on the vine every time.
