"Spring is typically the busiest season for mortgage activity. But in 2025, higher rates, trade-war concerns and the Federal Reserve's wait-and-see approach kept borrowers on the sidelines. Now, conditions are shifting. October should be the best funding month of the year, said Kevin Peranio, chief lending officer of Paramount Residential Mortgage Group (PRMG). It's more of a refinance story but purchases are getting a lift too."
"Rates have been supported not only by the Fed's September quarter-point cut but also by improving spreads, which narrowed to 2.15% last week from a peak of 3.10% in 2023. Mortgage rates are 0.39% better this year because of spreads on average, Mohtashami added. If the spreads today were as bad as they were at the peak of 2023, mortgage rates would currently be 0.95% high"
30-year conforming loan locks averaged 6.34%, one basis point higher than a week ago but 11 bps lower than two weeks prior. Jumbo 30-year rates rose to 6.24% and FHA 30-year loans increased to 6.18%. Higher rates, trade-war concerns and the Fed's wait-and-see stance kept borrowers sidelined earlier in 2025, but activity has picked up as rates trend down. October is expected to be the strongest funding month, driven mainly by refinances with purchases also improving. Spreads narrowed to 2.15% from a 2023 peak of 3.10%, lowering mortgage rates by about 0.39% year-to-date.
Read at www.housingwire.com
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