Mortgage Rates Actually Increase After Fed Cut. Initial Conforming Limit Increases.
Approximate Rates for Week Ending 9/19/25
As expected, the Fed reduced short-term rates by 0.25% on Wednesday but this was expected and had been priced into mortgage rates for weeks. Instead of the rate increase, analysts concentrated on the ‘Dot Plot’ of future rate predictions and the comments of the Fed after the meeting. Chair Jerome Powell said that this was a ‘risk management’ cut rather than the start of a reduction cycle and that they would make future decisions meeting-by-meeting based on available data.
Lenders have started to increase their available conforming limits in anticipation of the official announcement later in the year. $819,000 up from $806,500 is the conservative estimate that is being used – the actual number is likely to be higher than that.
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Mark Smith
Victoria Capital
Los Gatos
408 353 9784
www.MarkSmithLoans.com
|
Program |
No Points (APR) |
1 Point (APR) |
Change since last update |
|
Conforming (<$806,500) |
|||
|
30yr Fixed |
5.875% (6.11%) |
5.625% (6.20%) |
No Change |
|
30yr FHA |
5.5% (6.19%) |
5.25% (6.12%) |
+0.125% |
|
30yr FTHB |
5.875% (6.11%) |
5.625% (6.20%) |
No Change |
|
10yr ARM |
- |
- |
- |
|
7yr ARM |
5.75% (5.91%) |
5.375% (5.89%) |
+0.25% |
|
5yr ARM |
5.75% (5.91%) |
5.375% (5.89%) |
+0.25% |
|
15yr Fixed |
5.25% (5.31%) |
4.875% (5.19%) |
+0.125% |
|
High-Cost Conforming (>$806,500<$1,209,750) * |
|||
|
30yr Fixed |
6.125% (6.31%) |
5.875% (6.28%) |
No Change |
|
30yr FHA |
5.5% (5.99%) |
5.25% (6.02%) |
+0.25% |
|
30yr FTHB |
- |
- |
- |
|
5yr ARM |
- |
- |
- |
|
15yr Fixed |
5.875% (5.99%) |
5.375% (5.93%) |
+0.375% |
|
Jumbo (>$1,209,750) * |
|||
|
30yr Fixed |
6.125% (6.24%) |
5.875% (6.22%) |
+0.25% |
|
10yr ARM |
6.25% (6.42%) |
5.875% (6.22%) |
+0.25% |
|
7yr ARM |
5.875% (6.04%) |
5.625% (6.22%) |
+0.25% |
|
5yr ARM |
6.25% (6.32%) |
5.75% (6.12%) |
+0.125% |
|
15yr Fixed |
6.00% (6.09%) |
5.75% (6.10%) |
+0.25% |
LOWER HOME AFFORDABLE RATES FOR FIRST TIME HOMBUYERS (FTHB) SUBJECT TO INCOME LIMITS
No Points No Cost Also Available!Conforming Rates and APRs calculated on Purchase loan amount of $600k (conforming), $900k (high-cost conforming,) and $1.25m (Jumbo) 30- day lock, 60% LTV, impounds,780 fico.
FTHB (First Time Home Buyer) conforming rates based on purchase loan amount of $750,000 with 20% down, High Cost Conforming $1m with 20% down. Subject to Income Limits
FHA Rates and APRs Calculated on Purchase Loan amount of $700k (Conforming) and $1m (High Cost), 30-day lock, 96.5% LTV, 720 Fico
This is not a commitment to lend. Rates are provided for informational purposes only. Please contact me for rates, products, and costs for your individual situation.
*Assumes high-cost areas, e.g., Santa Clara County and other Bay Area Counties
DRE: 01395052
NLMS:308562
