Arguably their best freshman recruit, a shortstop, was projected as a high first-round pick in this past draft. He opted to take his name out of the draft and come to school instead.
Fastest kid in the country, and it was on full display yesterday.
I have seen some incredibly fast kids during my travels with Bren. One local Northern Virginia kid was drafted out of high school and is now in the Phillies organization.
Let me just say this. Wow! This kid can fly.
Saw some good young arms as well. Excited to see what they look like this spring.
Market Notes*
I don’t really want to chat much about the rate market this week.
I grow weary at this point.
It has been a tough few months, and we will leave it at that.
Higher oil prices mean higher inflation expectations. Higher inflation expectations generally mean higher long-term mortgage rates.
For the most part, mortgage rates are about 0.25% higher than last week and are sitting at their highest levels since early 2025.
The market has also largely priced in a short-term rate hike at next week’s FOMC meeting.
We will get back to our regularly scheduled programming next week.
Mortgage Question of the Week
In the meantime, Fannie Mae is making some notable changes for borrowers purchasing a new home while converting their current residence into a rental.
I saw some information on social media this week that was not particularly helpful. Some of it was vague, and some simply wasn’t accurate.
So, we put together some details below that we think will help.
Can the rent from your current home help you qualify for your next home?
Yes, but Fannie Mae is changing how that rent must be documented.
Beginning with applications dated November 1, 2026, a signed lease and deposit will no longer be enough for a home being converted from a primary residence to a rental.
The lender must establish market rent through an appraisal, rent schedule, or supported market analysis using at least three comparable rentals.
The lender will generally use 75% of the supported market rent to help offset the existing home’s mortgage payment.
Even when the calculation produces positive income, it can only offset that home’s payment. It cannot create additional qualifying income.
Borrowers with less than 12 months of property-management experience will also need six months of the departing residence’s PITIA in reserves.
From my perspective, parts of the process may actually be easier since you no longer need to rely on a lease or verify receipt of the security deposit and first month’s rent.
If you are planning to keep your current home as a rental, it is a good idea to discuss the numbers and documentation with your lender before writing an offer on your next home.
| Previous Policy |
New Policy |
| A fully executed lease could establish the rent. |
A lease cannot be used to determine rent on a departing residence. |
| The file generally included a lease plus Form 1007/Form 1025 or other applicable support. |
Rent must be supported by an appraisal with market rents, Form 1007, or a market-rent analysis such as MLS, Zillow, or Redfin with at least three comparable rentals. |
| A new lease was commonly validated with the security deposit and first month’s rent, including proof of deposit. |
A deposit and first month’s rent do not replace the required market-rent documentation. |
| Generally, 75% of documented gross rent was used. Borrowers without rental-management history could use it only up to the property’s PITIA. |
Borrowers may still use 75% of the market-supported rent, but any positive amount may only offset the departing residence’s PITIA. It cannot create additional qualifying income. |
| No separate six-month departing-residence reserve rule applied solely because the borrower lacked management experience, although normal reserve rules still applied. |
If the borrower has less than 12 months of property-management experience, six months of the departing residence’s PITIA must be documented in reserves, in addition to other applicable reserve requirements. |
Looking Ahead
Enjoy a great week.
If we can answer any questions or provide a quick preapproval, please feel free to give us a call.
Many thanks!
-Steve-
*All loans are subject to credit approval and program guidelines.