PROGRAM UPDATE
1. HUD Announces 14 FHA Changes Aimed at Lowering Mortgage Friction
HUD is changing 14 FHA policies, including a move that the agency says could reduce appraisal field-review costs by about $3.3 million annually across industry participants.
According to the U.S. Department of Housing and Urban Development (HUD), the changes apply to several parts of the FHA Single Family program.
HUD announced 14 changes to the Federal Housing Administration (FHA) Single Family mortgage insurance program on June 23, 2026. The agency says the updates address origination, servicing and quality-control processes, with the stated goals of reducing administrative burdens and improving affordability.
- HUD says appraisal field reviews average $425 each and that revised requirements are expected to reduce industry costs.
- The Limited 203(k) rehabilitation program will allow more contractor draw requests, potentially adding flexibility during eligible renovation projects.
- Other changes address quality-control reviews after natural disasters, remove a duplicative Homebuyer Notice form requirement, and clarify trial payment-plan rules for loss mitigation.
Why it matters: The announcement could affect how some FHA loans are processed, documented and serviced, but the source does not provide implementation dates, borrower-specific savings, or a guarantee that every lender will apply the changes immediately. The Limited 203(k) update is particularly relevant to borrowers financing certain home repairs.
Bottom line: Borrowers and lenders should confirm the current FHA requirements and lender procedures before relying on any announced change.
RATE WATCH
2. Fed Officials Lift 2026 Rate Projection as Inflation Outlook Jumps
The Federal Reserve’s median projection for 2026 personal consumption expenditures (PCE) inflation rose to 3.6%, up from 2.7% in March. The median projected federal funds rate also increased to 3.8% from 3.4%.
According to the Federal Reserve’s June 17, 2026 Summary of Economic Projections, policymakers raised their median inflation and federal funds rate projections for 2026.
The Federal Reserve’s June 2026 Summary of Economic Projections shows a higher inflation outlook and higher projected federal funds rates than in March. These are individual policymakers’ assessments of appropriate policy, not guarantees or direct forecasts of mortgage rates.
- The median federal funds rate projection is 3.8% for 2026, 3.6% for 2027, and 3.4% for 2028, compared with March projections of 3.4%, 3.1%, and 3.1%.
- The median PCE inflation projection is 3.6% in 2026, 2.3% in 2027, and 2.0% in 2028. Core PCE inflation, excluding food and energy, is projected at 3.3%, 2.5%, and 2.1%.
- The median unemployment projection is 4.3% for 2026 and 2027, then 4.2% in 2028; projected real gross domestic product growth is 2.2%, 2.3%, and 2.2%.
Why it matters: The projections do not establish mortgage rates, which are not listed in the release. They provide context for discussions about the future policy environment, but borrowers should not treat the federal funds rate path as a mortgage-rate quote or promise.
Bottom line: Use the projections as economic context, not as a prediction of the mortgage rate available to any borrower.
RATE WATCH
3. 2026 Housing Outlook: Rates May Stay Between 5.75% and 6.75%
The 2026 housing outlook hinges on whether mortgage rates remain near 6% or move back above 6.64%, according to HousingWire analyst Logan Mohtashami.
HousingWire reports that lead analyst Logan Mohtashami expects 2026 mortgage rates to range from 5.75% to 6.75%, with inventory growth continuing.
HousingWire reports on lead analyst Logan Mohtashami’s 2026 forecast for mortgage rates, home prices, sales and inventory. The outlook is an analyst forecast, not a guarantee or market-wide prediction, and depends heavily on economic conditions, labor data and Treasury yields.
- Mohtashami forecasts the 30-year mortgage rate between 5.75% and 6.75%, alongside a 3.80%, 4.60% range for the 10-year Treasury yield.
- The forecast anticipates home prices declining 0.62% in 2026 as inventory expands, while rates closer to 6% could support stronger existing-home sales.
- Mortgage spreads, the gap between the 10-year Treasury yield and the 30-year mortgage rate, are expected to move toward 1.80%, below the 2.05% level cited for the end of 2025.
Why it matters: For consumers, the forecast suggests that small rate movements may affect both purchasing power and market activity. More listings could provide buyers with additional choice, while sellers may face softer pricing if rates rise. Local conditions can differ substantially from this national outlook.
Bottom line: Treat the forecast as a framework for watching rates, inventory and prices, not as a promised market outcome.
This RGI Mortgage Brief is for general educational purposes only. Programs, pricing, terms, eligibility, and availability may change and remain subject to complete review and lender approval. This is not a commitment to lend.