Today’s Mortgage Market Insights – September 3, 2025

 

 

Today’s Mortgage Market 

1. Refinance Rates Climbing

• The average refinance rate for a 30-year fixed loan has edged higher to 6.58%, per Zillow data. Fortune

• Meanwhile, the Mortgage Research Center reports a slight uptick in the 30-year fixed refinance rate to 6.54%, with 15-year rates holding at 5.42% and 20-year rates at 6.31%. Forbes

2. Mortgage Rates Tick Up… Slightly

• Rates rose modestly today—but not enough to derail most homebuying plans, according to NerdWallet. NerdWallet

• Forbes Advisor highlights a 0.12-percentage-point weekly increase in 30-year fixed rates to 6.46%, while the 15-year fixed APR dipped marginally to 5.x%. Forbes

• Bankrate and WSJ show today’s national average 30-year fixed rate at 6.56%, down from last week, with the 15-year fixed at 5.78%, and a 5/1 ARM averaging 5.66%. The Wall Street Journal

3. Adjustable-Rate Mortgage (ARM) Moves

• The 5-year ARM rate is down by 3 basis points, offering a slight break for those tilting toward adjustable terms. Norada Real Estate

4. Refinance Demand Surges, Purchase Applications Slip

• Refinance activity is picking up as homeowners lock in favorable refinancing rates. Realtor

• Conversely, applications for new mortgages have declined for the third straight week, suggesting buyer hesitation. Realtor

5. Fed Rate Cut Anticipation Builds

• The market is watching closely ahead of the Federal Reserve’s September meeting, with expectations mounting for a rate cut—and the potential for further mortgage rate relief. CBS News

6. Unearthing a Little-Known Tax Break

• Did you know? The mortgage interest deduction (MID) for second homes still exists, allowing interest deductions on up to $750,000 in mortgage debt. However, it’s disproportionately benefiting high-income earners, raising concerns about housing inequality. New York Post

7. Homeownership: The Waning American Dream

• A staggering 77% of Americans say owning a home is tougher now than it was for prior generations, with high prices, inflation, and scarce inventory to blame.

• Gen Z and Millennials are especially pessimistic—41% of Gen Z and 42% of Millennials fear they’ll never be able to afford a home.

---

Why These Trends Matter

• Opportunity for Refinance: The slight drop in ARM and stable refinance activity offer a window for some homeowners to reduce monthly payments.

• Caution for Buyers: Purchase applications are down, signaling buyer wariness amid rate uncertainty.

• Policy Influence on Rates: Fed signals of a potential rate cut could be a game-changer—if history holds, mortgage rates may follow—but it might take time to see the benefits.

• Equity & Tax Policy Spotlight: The debate over MID for second homes touches on fairness, housing supply, and regional economies—one to watch in the coming weeks.

Contact us today to discuss mortgage options 

Call 888-958-5382

APPLY NOW