September 2025 Mortgage Market Update: Simple Takeaways for Boulder Real Estate

Mortgage rates are making headlines again, and this time in a good way. Rates are now at their lowest point since October 2024. Let’s break down what’s happening, what it means in plain language, and why it matters for buyers, sellers, and investors.

Where Are Rates Headed?

• Direction: Lower

• Why? Recent jobs data showed fewer new jobs than expected, which made investors push interest rates down.

• What’s Next? Key economic reports on inflation (CPI and PPI) and Treasury auctions are coming next week, which could affect rates further.

Current Rates at Elevations (as of Sept 5, 2025)

• 30-Year Fixed Conventional: 6.25% (+ small fee at closing).

• 7-Year Jumbo ARM (loans over $806,500): 5.75% (+ small fee at closing).

Reminder: Rates aren’t locked until a property is under contract.

What Happened in the Market This Week

• Mortgage rates dropped to 10-month lows.

• The 10-year Treasury yield fell to 4.08%, driven by weaker job growth in August.

• Job creation came in at 54,000, lower than the 73,000 expected.

• Fewer job openings were reported, though hiring and quitting rates stayed stable.

• The services sector (including real estate) kept growing, showing strong demand despite hiring challenges.

Why This Matters for You

For Buyers

Lower mortgage rates improve affordability. Even a small drop in rates can save hundreds per month on a mortgage payment. If you’ve been waiting for the right time to get pre-approved, this could be it.

For Sellers

Lower rates bring more buyers into the market. That means stronger interest in homes, which can help sellers secure better offers. More qualified buyers = more competition for your home.

For Investors

Lower borrowing costs make financing investment properties more attractive. With rates near year-long lows, this could be a window to expand portfolios or refinance existing properties.

Looking Ahead

• The Federal Reserve will not make public comments until their September 17th meeting.

• Watch for key reports: CPI, PPI, and new Treasury bond sales. These will help shape the direction of mortgage rates in the coming weeks.

FAQ

Q: Why are rates falling now?
A: Weaker job data made investors expect slower economic growth, which usually lowers interest rates.

Q: Does this mean rates will stay low?
A: Not guaranteed. Upcoming inflation reports and Treasury auctions could change the direction.

Q: Should I lock in a rate now?
A: If you’re ready to buy, locking in at today’s lows could be smart. Rates can change quickly.

Q: How do lower rates help sellers?
A: More buyers qualify for loans, increasing demand and improving chances for multiple offers.

Q: What’s the difference between a fixed-rate mortgage and an ARM?
A: A 30-year fixed keeps the same rate for the life of the loan, while a 7-year ARM starts with a lower rate but adjusts after seven years. ARMs can be good for short-term owners.

Sources

• Freddie Mac – https://www.freddiemac.com

• Mortgage News Daily – https://www.mortgagenewsdaily.com

• Bureau of Labor Statistics – https://www.bls.gov

• ISM Services PMI – https://www.ismworld.org

• U.S. Treasury Data – https://home.treasury.gov