The Accunet Mortgage and Realty Show (9-5-2025) Episode

# When Life Throws You Curveballs: Real Stories from the Mortgage Front Lines

*How August’s job report shook up rates, what Milwaukee’s housing market really looks like, and why waiting for the “perfect” moment might be costing you money*

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The Bureau of Labor Statistics delivered quite the surprise on Friday, September 5th: America added just 22,000 jobs the month prior in August when the general survey of economists had expectations at or around 75,000. While this first draft on employment data was disappointing for the broader economy, it brought some welcome relief to mortgage rates.

But here’s where it gets interesting – and a bit frustrating if you’re the type who likes clean, tidy data. Those July numbers? Revised up by 6,000 jobs. June? Well, that one went from positive 14,000 to negative 13,000. David asks the fair question: “How real then is this August jobs report?” And Brian notes: “It’s the best we have. It’s an indication,” and that’s really the crux of it.

## The Waiting Game That’s Costing You Money

Here’s where our friendly uncle advice kicks in: stop overthinking this thing.

Brian shares the story of a past client up in Green Bay who had an adjustable rate mortgage he didn’t get from Accunet. The client was thinking he needed to wait until rates came down a whole percent before refinancing.

 The outdated logic seems to go: big refi costs require big savings to make it worthwhile. But that’s old thinking.

Brian pointed out to this client that every month he waited, he was wasting $210. “Why would you voluntarily be paying more? If you’re going to wait six months for rates to come down a little farther, now you gotta make up that $1,200 of lost savings on top of everything else.”

It’s like voluntarily paying extra for groceries today because you think they might go on sale next month. Sure, they might – but you still need to eat this month.

After rates improved following the jobs report, Brian could call the client back and offer him the same $210 monthly savings at no cost. Sometimes patience pays off, but more often, action does.

## Milwaukee’s Market Reality Check

Let’s talk about what’s actually happening in our backyard, because national headlines can be pretty misleading when it comes to your neighborhood.

Brian, who tracks the Multiple Listing Service data through Accunet Realty Advisors, reports that August home sales in the five-county Milwaukee metro area were essentially flat compared to last year – 1,691 closed sales versus 1,710. The median price bumped up 5.7% to $370,000, which isn’t shocking news. But here’s the kicker: there were 257 fewer new listings than last August. That’s a 12% drop.

David observes this could be a double whammy: rates have come down a little, so buyers feel like they have more elbow room, but “there’s fewer puppies for sale at the house puppy store. Competition is going to become more fierce.”

The math backs this up. Milwaukee sits at 2.15 months of supply – anything under three months is considered a seller’s market. As Brian notes, you can ignore all those headlines about record inventory. “Not where we live.”

Another interesting data point from Brian’s MLS research: only 49% of homes sold over asking price in August, compared to 54% last year and 59% in August 2023. That suggests either a slight cooling in buyer aggression or sellers getting more aggressive with their pricing strategy.

## When Life Happens During Your Home Purchase

Sometimes the mortgage business feels like a sitcom, except the stakes are real and the laughs come after closing. Take David’s client who got an accepted offer on a weekend, then got a call on Tuesday with news that their job was being terminated, though they’d receive one year of severance.

The first question, naturally: “Can I qualify using my severance?”

Here’s where creative problem-solving meets mortgage reality. David explained to the client: “I cannot point to a job that you won’t have by the time you’re making the first payment on this.” Lenders call employers right before closing, and when HR says the employee’s last day is November 1st, that stops the presses.

But this client was 59½ – the magic age for IRA withdrawals without penalties. The solution? Turn that retirement account into qualifying income. With help from a financial advisor setting up monthly withdrawals, that pile of money becomes income on a mortgage application.

As David explains, “A bad mortgage carpenter would just shrug and say, ‘good luck to you.’ But thankfully, we have this tool in our toolkit called retirement income.”

The client decided to proceed with the purchase, and why not? They had other assets for the down payment, would clear money from selling their current home, and in real life, they were going to be just fine financially.

## The Contingency That Kills Deals

Speaking of problem-solving, Brian had a referral looking at a special property in Waukesha County. The buyer had gotten pre-approved at his bank, but it was contingent on selling his home first.

As David translates it: that’s like saying to a Seller, “I will marry you just as soon as I break up with my other girlfriend. That’s not going to work for a property that’s going to be attractive” to other buyers.

They worked out a solution using a seven-year adjustable rate mortgage and a substantial gift from dad (David notes, “That’s what dads are for, right?”), which helped with qualifying for both mortgage payments simultaneously. But ultimately, the buyer decided the home’s layout was all wrong after seeing it in person.

Still, as David puts it, “now he has [the proverbial] engagement ring in his pocket when that next beautiful house walks in.” The lesson? If you think a bidding situation will be competitive, you can’t go in with a home sale contingency. You might get lucky if there are no other offers, but you’re essentially coaxing the Seller to wait and see if anyone better comes along.

## Investment Property Strategies

David also helped new clients get an accepted offer on an investment property this week. This retired couple are originally from Milwaukee (still have 262 phone numbers) now buying a fixer-upper as a future rental.

The interesting conversation centered on balancing down payment versus retaining cash. They chose 20% down instead of 25% or 30%, even though higher down payments get better rates. Why? They knew the property needed work and wanted money left over for improvements.

Some clients focus intensely on getting the absolute best rate, but as David notes, sometimes you’re talking about saving a near immaterial amount monthly while tying up cash you actually need for other purposes. It’s about seeing the bigger picture.

They were also able to use projected rental income from the property (75% of fair market rent) as additional qualifying income, which took some pressure off setting up IRA withdrawals.

## The Tools That Make the Difference

David had two other clients with accepted offers this week that showcase how preparation pays off. One client got a “value acceptance” (what Brian notes used to be called an appraisal waiver – Fannie Mae and Freddie Mac changed the nomenclature) on their 15% down payment gameplan. Another client got a 14-day closing with no appraisal required.

The second client’s pre-approval actually highlighted in yellow and bold: “No appraisal required.” That’s powerful when writing offers.

David was stress-free because everything was documented upfront, no appraisal was needed, and he could deliver on a lightning-fast closing: “I was like, I’ve got everything documented. We don’t need an appraisal. It’s going to be lickety-split getting to the closing table. I’m going to be ready after four days, not 14.”

Both offers were accepted at list price because everything else was so strong – no financing contingencies, guaranteed pre-approvals, and clear paths to closing.

## Looking Ahead

The Federal Reserve is virtually certain to cut its one and only rate overnight rate by a quarter point on September 17th, with decent chances of additional cuts in October and December. 

But here’s the key insight from Brian: those anticipated cuts are already baked into today’s mortgage rates. You don’t have to wait for the Fed to act.

David’s been having a consistent not-rhetorical conversation with clients since rates peaked in October 2023: “A year from now, do you think rates will be higher, lower, or the same?” The answer from clients has consistently been “lower,” and it’s proven true. Some of those refinance clients are experiencing a bit of vindication now.

But whether you pay points for a lower rate depends on your thesis. Are you convinced this refinance will give you the lowest rate you’ll see for quite some time? Then maybe it makes sense. Otherwise, take the no-cost option and keep your powder dry.

## The Bottom Line

Brian sums it up: “Rates are lower, which is good news.” But it might drive more competition, so you need to put your best competitive foot forward.

Whether you’re buying your first home, moving up, or finally pulling the trigger on that refinance you’ve been thinking about, the key is working with people who see around corners and have solutions for when life gets tricky.