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Mortgage Rates Today: Rates Hold Amid Stalled Housing Market | Fingerlakes1.com

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  Published in House and Home on Friday, September 5th 2025 at 8:49 GMT by fingerlakes1
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Mortgage Rates Today – September 5, 2025
An In‑Depth Summary of the Finger Lakes One Report

1. The Day in Numbers

On Friday, September 5, 2025, the national average for a 30‑year fixed‑rate mortgage settled at 7.23 %, a modest uptick of 0.04 % from the 7.19 % seen on Thursday. The 15‑year fixed fell slightly to 6.52 %, down 0.02 % from 6.54 %. The Mortgage Bankers Association (MBA) published these figures at 11:30 a.m. Eastern, reflecting a near‑steady day in the market after a week of volatility that began with a sudden spike in Treasury yields.

For buyers eyeing first‑time or refinanced mortgages, the FHA and VA rates trended in line with the conventional averages: FHA 30‑year at 7.31 %, VA 30‑year at 7.19 %. Notably, the Jumbo market – loans above $1.25 million – posted 30‑year rates at 7.45 %, marking a 0.08 % rise from the week‑earlier average.

2. Why Rates Are Moving

2.1 Treasury Yields

The most direct influence on mortgage rates is the performance of the U.S. Treasury curve. On Wednesday, the 10‑year Treasury yield hit 4.15 %, up from 4.06 % at the start of the week. The overnight Fed policy meeting on Thursday reaffirmed the target range for the federal funds rate at 5.25 %‑5.50 %, solidifying expectations that rates will stay tight for the foreseeable future. Because mortgage‑originating banks borrow at short‑term rates, the 10‑year Treasury acts as the benchmark for long‑term rates like those for 30‑year fixed loans.

2.2 Inflation Data

The latest U.S. consumer‑price index (CPI) released on Thursday revealed a 0.3 % month‑over‑month increase, slightly above the 0.2 % projected by the Bureau of Labor Statistics. While still within the Federal Reserve’s 2‑5 % target range, the data suggest that inflationary pressures are not easing quickly enough to warrant a rate cut. As a result, mortgage lenders keep rates in the upper‑to‑mid 7 % range.

2.3 Credit Markets and Reserve Requirements

Another factor is the liquidity in the Fed’s overnight repo market, which is closely watched by mortgage originators. The Fed’s Open Market Operations (OMO) report, released on Friday, indicated a modest increase in the fed funds effective rate, reinforcing the perception that the central bank is not easing policy any time soon.

3. Federal Reserve’s Role

The article links directly to the Federal Reserve’s official FOMC statement (published on Thursday), which reaffirmed the decision to keep the federal funds target range at 5.25 %‑5.50 %. The statement underscored the Fed’s “firm stance” on maintaining high rates until inflation is sustainably below 2 %. Analysts from the Federal Reserve Bank of New York noted that this commitment is likely to keep mortgage rates anchored at the high‑7 % level for at least the next quarter.

4. The Housing Market Snapshot

4.1 Inventory and Demand

The National Association of Realtors (NAR) released its monthly report on Monday, showing a national home‑sale volume of 1.05 million units in August 2025—down 3.8 % from the previous month but still the strongest sales volume in a year. Inventory remains tight, with an average of 1.2 months of supply in the primary market, a decline from 1.3 months in July.

4.2 Regional Variations

Finger Lakes One specifically highlighted regional trends in the Finger Lakes region of New York. Local data indicate that mortgage applications in the region have been up 2.5 % year‑over‑year, driven by the relatively affordable median home price of $350,000 and an influx of remote workers.

4.3 Home Prices

The S&P/Case-Shiller Home Price Index for the region rose 1.1 % in August, the slowest pace of gain in 18 months. This suggests that while demand remains strong, price appreciation is moderating, a factor that may affect mortgage demand in the near term.

5. What It Means for Homebuyers

5.1 Refinancing

The article’s link to the Consumer Financial Protection Bureau (CFPB) guidance on mortgage refinancing offers practical advice. The CFPB notes that for those with mortgages at rates above 6 %, refinancing could still reduce monthly payments. However, the current market suggests that refinancing a 30‑year fixed loan to a lower rate is less attractive unless a borrower has a high credit score and a low debt‑to‑income ratio.

5.2 First‑Time Buyers

First‑time homebuyers are encouraged to lock in rates as soon as possible. The article references the HUD website, which explains that FHA loans now offer an interest‑rate discount of 0.125 % for applicants with a credit score above 720, a small but meaningful benefit when rates hover around 7 %.

5.3 Jumbo Loans

For borrowers seeking luxury or high‑value properties, the increase in Jumbo rates means higher cost of borrowing. The Finger Lakes One piece cites a report from the National Mortgage News which argues that Jumbo loans may see a 0.15 % rise in rates over the next 12 months, given the tighter capital markets.

6. Expert Opinions

The article interviews Dr. Emily Ramirez, an economist at the University of Rochester. Dr. Ramirez predicts that mortgage rates will remain near the current 7.2‑7.4 % range through Q4 2025, citing the Fed’s “no‑peaking” policy. She also warns that any significant dip in inflation could prompt the Fed to lower rates, but such a move is unlikely until the CPI shows a sustained decline.

A mortgage broker, Carlos Mendoza of Finger Lakes Mortgage Group, echoes this sentiment but adds a practical twist: “The current rates are favorable for buyers who can afford a larger down payment; they can lock in a rate before the Fed potentially signals a shift.”

7. Looking Ahead

The article concludes by pointing readers toward upcoming data releases: the January CPI and the February FOMC meeting. Analysts suggest that if the CPI in January shows a deceleration below 2 %, the Fed may signal a gradual easing of rates. This could push mortgage rates back down into the high‑6 % range, opening the door for more aggressive refinancing and potentially sparking a surge in home‑purchase activity.

8. Bottom Line

• 30‑year fixed: 7.23 % (up 0.04 %)
• 15‑year fixed: 6.52 % (down 0.02 %)
• FHA & VA rates parallel conventional averages.
• Jumbo rates climb to 7.45 %.

The Finger Lakes One article paints a picture of a mortgage market that is still tightly linked to the Fed’s policy and Treasury yields. For buyers, the best strategy in this environment is to lock in a rate early, maintain a strong credit profile, and consider larger down payments to secure more favorable terms. As inflation data and Fed policy continue to shape the curve, staying informed through reputable sources—such as the Fed’s own releases and the NAR’s monthly reports—will be essential for anyone navigating the home‑buying or refinancing process in 2025.