This past week interest rates improved slightly and remain near the best levels of the year — good news for brokers juggling borrower expectations and pipeline management. Let’s break down what happened, why it matters, and what you can do as we head into the Fed’s blackout window.

Jive talkin’, you wear a disguise Jive talkin’, so misunderstood, yeah. 
Jive Talking by The Bee Gees

Fed Speaking While They Can — and Why Brokers Should Listen

This past week brought a flurry of Fed voices before the “quiet period,” the 12-day window ahead of Fed meetings when officials stop commenting on policy. The next Fed meeting is October 28–29.

For brokers, this is the calm before the next potential rate move — a key moment to assess rate-lock timing, prepare borrower conversations, and identify which loan programs may benefit from near-term market shifts.

What did we learn? It was all about reconciling contradictions: the labor market is cooling, inflation remains sticky, and the path for rates is anything but smooth. Their remarks reflect a central bank still walking a tightrope between not easing too quickly and avoiding overtightening.

In short: uncertainty remains — and that’s opportunity for brokers who can pivot quickly.

Federal Reserve Chair Jerome Powell, speaking in Philadelphia, highlighted a “slowdown in U.S. hiring” as a warning sign: “The broader employment and inflation outlook remains consistent,” he said, but the slackening in labor demand warrants attention.

Powell also defended the Fed’s pandemic-era bond purchases in the face of criticism, stating they were “critical to stabilizing the economy,” even if, in hindsight, their duration extended longer than ideal. For brokers, this reaffirms the Fed’s intent to maintain support until data shows sustained strength — meaning potential rate stability in the near term.

Other regional policymakers added nuance to the debate:

• Governor Christopher Waller flagged job market deterioration as a key driver behind his support for a 25-basis-point cut at the upcoming FOMC meeting.
• Boston Fed President Susan Collins echoed that “more easing is needed to sustain the job market,” but kept her tone data-dependent.
• Philadelphia Fed’s Anna Paulson warned that should inflation “show some life,” rates may remain higher.
• Fed Vice Chair Michelle Bowman argued the opposite — that “labor market risks now outweigh inflation concerns,” urging “decisive rate cuts” to prevent economic fragility.

Lastly, the latest Fed Beige Book showed mostly flat economic activity and signs of strain among middle- and lower-income consumers — a datapoint brokers should watch closely, since it may translate into stronger demand for alternative income verification products like Bank Statement and P&L programs.

Bottom line for brokers:

The Fed is signaling mixed messages, but the overall tone leans toward easing — a positive sign for borrowers on the fence and brokers looking to re-engage inactive leads.

Lower Oil = Lower Rates

Following the Israel–Hamas ceasefire, oil prices dropped below $60 per barrel. If oil remains low, we could see continued downward pressure on long-term Treasury yields and mortgage rates.

What this means for you:

• Revisit locked deals that could now qualify for better pricing.
• Market Non-QM and DSCR programs to investors who paused acquisitions earlier in the year.
• Highlight rate improvement in client updates — a small change in rates can unlock stalled purchase activity.

Pro tip: Share quick “rate insight” posts on LinkedIn or email updates to your broker network. Position yourself as the go-to advisor during this calm period.

What Brokers Should Do During the Quiet Period

1. Audit Your Pipeline:
   Identify loans that could benefit from a small rate drop — especially DSCR and bank statement loans.
2. Educate Borrowers:
   Clients are hearing “conflicting headlines.” Be the voice of clarity: “Rates are stabilizing; we’re entering a potentially favorable window.”
3. Lean Into Non-QM:
   As traditional underwriting tightens, use Acra’s programs (Bank Statement, P&L, DSCR, Foreign National) to offer flexibility.
4. Prep for Data Releases:
   Watch for CPI and employment data. Rate volatility around these reports can create pricing advantages.
5. Connect With Your Acra AE/AM:
   They can provide the latest matrix updates, program nuances, and scenario structuring guidance.

Looking Ahead — Stay Ready for the Next Move

Even in quiet periods, smart brokers stay active. Rate sentiment can shift quickly once the Fed reconvenes, so now’s the time to position your borrowers and pipeline strategically.

At Acra Lending, we’re watching the same indicators you are — and updating our Non-QM programs accordingly.