Instagram

TODAY’S MORTGAGE RATES

Mortgage Rates saw some nice improvement
with the Mortgage Backed Security (MBS)
market trading up +21 bps on the week.

Here are your Average Mortgage Rates
across the country according to
Mortgage News Daily.

With not much data being reported,
all eyes are on the FED.

FED Chair Powell spoke on October
14^th and he stated that the FED may
stop the runoff of Bonds and Mortgage
Backed Securities on their
balance sheets.

Here is what this means in layman’s
terms:

The FED is currently allowing up to
35 billion in Mortgage Backed Securities
and 5 billion in U.S. Treasuries to mature
and not reinvest those funds back into
more Bonds and Treasuries. If they
limit this run off, they would essentially
be investing more money back into U.S.
Treasuries and Mortgage Backed
Securities which should help interest
rates.

The FED is also meeting with a statement
and press conference on 10/29/25.
According to experts, there is close to
a 100% chance of another Federal
Funds Rate Cut. The market is already
expecting the rate cut and it is
currently built into rate pricing.

The FEDs comments about future moves
will likely dictate how rates react to the
FED decision.

COULD AN ARM BE A
BETTER OPTION?

Adjustable Rate Mortgages are typically
fixed for 5, 7, or 10 years. ARMs have
become increasingly popular because
they typically offer a better payment
and rate than a fixed mortgage.

We are usually seeing 5/6 ARMS –
fixed for 5 years and adjusting every
6 months afterwards, pricing about
.375% better than a 30-year fixed
loan with the same costs.

And 7/6 ARMs – fixed for 7 years and
adjusting every 6 months afterwards,
pricing about .25% better than a 30-year
fixed loan with the same costs.

With ARM loans, you are usually
going to pay a point to a portion of
a point, because the rate savings
aren’t as substantial on a 0-point loan.

ARM loans typically save a customer
more money even if they stay in the
loan after the fixed period, based
on historical averages of adjustable
interest rate movements.

An ARM loan is not the best product
for every customer, but an ARM could
be a great option if you plan on not
being in your loan over the fixed
period of time, or you have a bit
higher of a risk tolerance.

Here is how much you would save
comparing a 30-year fixed mortgage and
a 7/6 ARM on a $500,000 loan. This
comparison assumes that interest rates
will adjust after the fixed period based
on historical averages.

On the 7/6 ARM, if you kept monthly
payment savings in hand, you would
save more money with an ARM until
15 years and 3 months, a full 8+ years
after the loan adjusts.

Your principal balance on a 7/6 ARM
would be lower for over 7 years.

Hope you have a fantastic week!!