Kay Monigold, Author at Avenue Mortgage, LLC

Losing a job can be stressful, and the thought of keeping up with your mortgage payments may feel overwhelming. The good news is that there are steps homeowners can take to protect their home and maintain financial stability during periods of unemployment. Understanding your options, communicating with your lender, and planning ahead can help you navigate this challenging time without risking your home.

Contact Your Lender Immediately
The first step after losing your job is to notify your mortgage lender as soon as possible. Lenders can often provide temporary solutions, such as forbearance, loan modifications, or repayment plans, to help you stay current on your mortgage. Being proactive shows responsibility and can prevent late fees, penalties, or potential foreclosure.

Explore Forbearance and Loan Modification Options
Forbearance allows you to pause or reduce your mortgage payments for a specific period, while a loan modification may adjust the terms of your mortgage to make payments more manageable. Both options are designed to provide relief during financial hardship, but it is essential to understand the terms and repayment responsibilities once the forbearance period ends.

Use Emergency Funds Wisely
If you have an emergency savings fund, now is the time to use it strategically. Prioritize mortgage payments and essential living expenses while minimizing non-essential spending. Maintaining your mortgage payments, even partially, can protect your credit score and prevent long-term financial consequences.

Consider Unemployment Assistance Programs
Government or employer-provided unemployment benefits can help bridge the gap during job loss. Some programs may provide direct financial support, while others offer temporary mortgage relief options. Research available resources in your area to see what assistance you may qualify for and how it can help you stay current on your home loan.

Plan for the Future
Losing a job can also be an opportunity to reassess your budget, emergency funds, and long-term financial plan. Consider ways to increase income, reduce expenses, or refinance your mortgage if appropriate. Working with a financial advisor or mortgage professional can help you create a strategy to protect your home and recover financially once employment is secured.

The PCE (Personal Consumption Expenditures) Index, the Federal Reserve’s preferred inflation measure, has been on the rise but remains within expectations.

Although there was heavy speculation that this year’s inflation would spike due to impactful tariff policies, it has largely stayed within forecasts—enough for the Federal Reserve to introduce a 25 basis point rate cut.

The PCE Index data has shown this trend to continue. This is followed up closely by the Consumer Sentiment report which has been unstable due to significant inflation concerns, but has finally tempered itself after three straight months of consumer sentiment falling to yearly lows.

Finally, Consumer Spending reports show that spending remains strong, signaling that the U.S. economy is healthy and recovering from earlier tariff-related policies. Even so, there is ongoing speculation that the Federal Reserve has penciled in two additional rate cuts before the end of the year.

PCE Index
The PCE index rose 0.3% in August, the Bureau of Economic Analysis said Friday. The Fed gives more weight to the so-called core price index that omits food and gas. It rose a somewhat slower 0.2% and matched the Wall Street forecast.

Consumer Personal Spending
High tariffs, lingering inflation, and more trouble finding a job apparently haven’t thrown consumers into a funk. Americans increased spending again in August to help keep the U.S. economy chugging. Personal spending rose 0.6% last month for the third month in a row, the government said Friday.

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw an increase of 0.08% for this week, with the current rate at 5.49%
• 30-Yr FRM rates saw an increase of 0.04% for this week, with the current rate at 6.30%

MND Rate Index
• 30-Yr FHA rates saw an increase of 0.06% for this week. Current rates at 6.09%
• 30-Yr VA rates saw an increase of 0.05% for this week. Current rates at 6.10%

Jobless Claims
Initial Claims were reported to be 219,000 compared to the expected claims of 235,000. The prior week landed at 232,000.

What’s Ahead
A lighter week overall, with the largest releases being the Consumer Credit, Consumer Sentiment, and U.S. Trade Deficit reports. There is also a scheduled FOMC Minutes, which will give a more definitive route on a potential plan for additional rate cuts this year.

Protecting Your Mortgage During Job Loss

What’s Ahead For Mortgage Rates This Week – September 29th, 2025

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