Market shows signs of life even despite familiar challenges
Mortgage rates have been on the up recently, with Freddie Mac reporting that the 30-year average ticked higher for a second consecutive week in the seven days ending October 2.
Meanwhile, the new federal government shutdown is casting something of a storm cloud over the US economy – but in the mortgage market, there’s been plenty of reason for optimism in recent weeks.
That 30-year fixed average, at 6.34%, is still markedly lower than it’s been for most of the year, and brokers have reported an upswing in client activity at the beginning of fall.
That’s partly because rates slipped in August and the first half of September, giving homeowners and hopeful buyers a rare glimmer of hope on purchase and refinancing prospects.
Michael Hudson (pictured top), founder at the Cleveland-based Social Mortgage, told Mortgage Professional America those rate drops helped move the needle for plenty of clients.
“We’re seeing higher amounts of applicants for purchasing. People are applying to buy a house. They’re starting to be curious,” he said. “You’re seeing folks who had bought a home in the last year now asking about refinancing and saving money.
“It’s good to be able to offer somebody a better mortgage than what they have right now and it reminds us that hey, the sky isn’t falling. Rates aren’t perpetually going to go up. They’re coming back down, and we’re going to be in a spot where it’s still affordable to buy.”
The 15-year fixed-rate average also moved slightly higher, jumping by 0.06% to 5.55%. The 52-week average for that product is 5.88%, and the monthly average is 5.49%.
While there are still plenty of challenges for borrowers in the current mortgage market – not least the fact that rates are much higher than they were four or five years ago – Hudson said buyers appear to be approaching that environment with a dash of optimism.
What’s more, home prices are no longer hitting the eyewatering heights of the COVID-19 pandemic, when bidding wars were a common occurrence across most major markets.
Eric Hagen of BTIG says falling rates and steady capital flow leave the housing market stable despite the shutdown. He notes lower volatility, strong non-bank originators, and resilience unless the disruption stretches beyond two weeks.https://t.co/Dr1Q64vCiv
— Mortgage Professional America Magazine (@MPAMagazineUS) October 2, 2025
“The biggest thing that I’ve noticed is that a lot of buyers coming into the market right now are more educated, more confident, they feel better about buying a home than they did maybe two years ago, when mortgage rates originally went up,” Hudson said.
“Now, things have kind of normalized and price points aren’t as scary as they used to be from 2020 when home values started to rise a lot. So we’re seeing a lot of great business.”
‘Cream of the crop’ rising in the mortgage industry
Much has been made of an exodus of sorts from the mortgage broker and loan officer professions in recent years as the market dried up and transactions stopped flowing as freely.
But Hudson said the brokers who have been toughing it out in recent years are well equipped to help their clients through tough times – and said the future of the broker space is in a good place.
“Who you are as a human being matters in this industry. And you’re starting to see the cream of the crop rise to the top,” he said.
Underlining the power of in-person interactions
Hudson was speaking to MPA at Rocket Pro’s Experience event in Detroit Tuesday (September 30), a gathering that brought together hundreds of brokers and LOs from across the US.
Face-to-face interactions with other brokers and lending executives, he said, are a vital part of growth in the industry. “I’ve worked with some of these people in the industry for 10+ years,” he said. “And seeing the same faces, same names over and over – it’s really cool to see.
“A lot of what I built in my business, my company and our operation came from word of mouth at broker conversations and conventions.”
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