Mortgage rates have eased slightly in recent weeks following the Federal Reserve’s first rate cut of 2025
Market Snapshot Update
So while rates are still elevated compared to pre-2022 norms, they are modestly improving, offering some breathing room especially for those considering refinancing or locking in a purchase.

• Freedom Choice Lending Shops loans with the top 200 wholesale lenders. Here’s rates as of September 18 2025 1:41 PM PST
  

Rates based on 80% LTV Refinance $648,000 Loan Amount 740 Fico score. APR 6.051%

Key Drivers & Trends

• The Fed recently cut the federal funds rate by 25 basis points, the first cut since 2024.
• Expectation of further cuts (perhaps two more this year) is contributing to downward pressure on mortgage rates, though the impact is not immediate or uniform.
• Treasury yields (especially the 10-year) remain a big influence: mortgage rates tend to follow bond yield trends more than short-term Fed moves.
• Refinancing activity has surged: many homeowners with older, higher-rate mortgages are seizing the chance to reduce monthly payments.
• Homebuilders are pulling back: new construction is slowing, some are trimming prices or offering more incentives. This reflects affordability stress.

Implications for Homeowners and Buyers

• Homeowners with mortgage rates in the high-6’s or 7’s should investigate refinancing, especially if they can drop by at least a full percentage point or more. Locking in now may make sense, because while rates are easing, they’re unlikely to collapse.
• Prospective buyers may benefit from slightly lower rates, but high home prices, tight inventory, and rising other costs (insurance, taxes) mean affordability remains a big hurdle. Budgeting carefully, shopping rates, considering down payment size, and understanding monthly carrying costs are more important than ever.
• For both buyers and refinancers: rate locks matter; even a small movement in rate (e.g. 0.25%) can make a meaningful difference in payments over 30 years.

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UWM & Wholesale Lender Highlights

United Wholesale Mortgage (UWM) remains one of the dominant players in the wholesale lending channel.

• UWM partners with independent mortgage brokers and underwrites and funds loans through that network, rather than doing all retail direct business.
• In their recent financials, UWM posted strong loan origination volumes: for example approximately $39.7 billion in Q2 2025, up year-over-year.
• Wholesale lenders like UWM allow brokers to shop their product lines, often providing flexibility in terms, sometimes lower fees or more favorable mortgage insurance (depending on the loan) than a non-brokered retail lender.

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Broker vs. Direct Lender vs. Bank: Pros & Cons

Here’s a comparison of the three paths you can take to get a mortgage: through a broker, going direct to a lender (bank or non-bank direct), or via a bank/credit union. Which is best depends on your situation.

Feature / Consideration	Mortgage Broker	Direct Lender / Bank
Access to loan options	Brokers can pull together offerings from many lenders (wholesale + retail) — more variety.	Direct lenders/banks are more limited to their own products. If the lender has many offerings, this might be less of a drawback.
Competitive rates & fees	Often better overall value in wholesale channel: sometimes lower fees, better rates, more flexibility in underwriting. Studies indicate savings vs nonbank retail lenders.	Direct lenders may offer good rates especially if you have a strong relationship (e.g. long history with bank), but may have higher overheads or less flexibility.
Speed / simplicity	Might have more steps because the broker is the intermediary; communication goes through them. If the broker is good, they manage much of the back-and-forth for you, which can simplify your experience. But there is a layer of coordination.	Direct lenders control the full pipeline; might have faster internal processes but potentially less incentive to find you the absolute best rate.
Transparency / potential conflicts	Brokers should reveal all the fees and commissions, though sometimes “steering” is a risk (i.e. a broker pushing a loan that gives them higher compensation even if another lender’s offer was better). Good brokers will disclose and act in your interest.	Direct lenders have simpler fee structures often, though you may need to watch for loan origination fees, add-ons, etc. Because there is no broker commission, sometimes fewer hidden costs.
Flexibility / underwriting leniency	Brokers can find lenders more suited to irregular or borderline credit, higher debt-to-income, non-traditional incomes, etc., especially via the wholesale channel. Banks and direct lenders are typically more rigid.	If you meet the standard criteria (credit, income, etc.), direct lenders can be very efficient; if not, you may hit obstacles.
Customer service & support	With brokers, its about transparency: how they get paid (commission, yield spread, service fees) are fully disclosed with a Loan Estimate.	Banks / direct lenders are more constrained; their fee structure is often more standardized. There fee’s are paid through the interest rate and the yield spread premium YSP compensation is not disclosure

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What to Watch Going Forward

For anyone involved or interested in the housing / refinancing market:

• Keep an eye on Treasury yields, especially 10-year and 30-year, since those pull the fixed rate mortgage market. Big bond yield moves will ripple into mortgage rates.
• Inflation data and labor market reports: if inflation picks up, pressure on rates will rise; sluggish job/income growth may allow more room for cuts or rate stability.
• Fed statements: if the Fed signals more cuts and the markets believe it, that tends to lower longer-term rates, but if they express caution (because of inflation or geopolitical risk), rates may flatten or climb.
• Housing supply & home price trends: affordable homes remain scarce in many areas; builder incentives, pricing adjustments, or policy changes may help, but such effects lag.
• Refinancing vs. purchasing decisions: sometimes refinancing is more affordable now; home buyers need to factor total cost (including closing costs, PMI/mortgage insurance, taxes, maintenance etc.), not just monthly payment.

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Bottom Line

If you’re a homeowner with a mortgage in the higher rate ranges, it’s worth running numbers on refinancing. The small percent difference now adds up in substantial savings over time. If you’re a home buyer, modest rate improvements help, but affordability is still tight; doing your homework, comparing lenders (including using a broker), and being realistic about total costs are essential.

Using a broker and tapping into wholesale lenders like UWM can provide meaningful advantages in many cases — more options, potentially lower fees, and better match to your personal situation — especially if your credit history, income, or down payment aren’t “text-book perfect.” But in some cases, going direct to a lender might be simpler and faster, especially if you or your bank have an established relationship.

If you like, I can pull together localized data (for California, Texas or any other state or even Whittier area) to see how your borrowing costs are likely to look, and which lenders/brokers in your area are getting the best deals. Do you want me to do that?

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