Mortgage Clarity: Making Sense of Rates, Refinancing, and Home Values

October 2025

Headlines about mortgage rates are everywhere, but clarity is rare. In this month’s newsletter edition, we spotlight what’s happening with rates, refinancing, and home values—and most importantly, what it could mean for the members you serve.

Rates: Holding Steady with Glimmers of Relief

As of October 2nd, the 30-year fixed rate is at 6.34%, slightly up this week but still under the 52-week average of 6.71%.

It dipped to 6.13% in late September, the lowest in three years, tied to bond market shifts and hints of a Fed cut.

15-year fixed rates are holding around 5.7–5.8%, which remains attractive for members wanting faster payoffs.

What this means for your members: Even small rate shifts can make homeownership more reachable. This is a good time to put affordability tools, like a mortgage calculator, in front of members and help them run the numbers.

Refinancing: The Surge Has Cooled, But Opportunities Remain

Early 2025 saw a 64% jump in refinancing activity year-over-year, but applications are now down 21%.

With 82.8% of homeowners already below 6%, traditional refis have slowed, however cash-out refis are emerging for equity-rich households facing rising costs.

What this means for your members: Borrowers with loans above 6% could still save $200+/month on a $300K loan. Others may be looking to unlock equity for home projects or debt consolidation. Our branded Refinance Calculator gives members a clear, goal-based view of their options—whether they want to save monthly or pay down debt faster.

Home Values: Steady Growth Ahead

The national average home value is $363,505, a 0.2% rise over the past year.

Forecasts call for ~3% growth in home values in 2025, with balanced supply and demand keeping prices from spiking.

Existing-home sales were flat in August (-0.2% MoM), suggesting a stable path for homebuyers into 2030.

What this means for your members: Stability in home values gives first-time buyers a better footing. Share these trends with members to position your credit union as the local expert—someone members can trust for perspective beyond the headlines.

Why This Matters for Credit Unions

Your members aren’t waiting for perfect conditions—they’re making choices today. When you connect their financial goals to the realities of rates, refinancing, and home values, you not only help them take confident steps toward homeownership but also strengthen their overall relationship with your credit union.

According to Edelman’s 2025 Trust Barometer, financial services remain among the least-trusted industries—especially among younger adults who prioritize fairness, transparency, and community focus.

Credit unions embody the next generation’s values, and the opportunity lies in how you communicate your shared values to the next generation. Our work is focused on helping credit unions amplify this message through tools like our branded refinance calculator, member education resources, and market insights that bring clarity and confidence back to the conversation.

If you’d like a deeper look at how these trends connect to your credit union’s members, I’d welcome a conversation.

To learn more about how MAM can help handle your mortgage program, watch our new video at:

Member Advantage Mortgage helps make credit unions the hero of their members’ homeownership journey, regardless of their size. We think the best place to start is by listening. Let’s start with a confidential conversation; just reach out to me and I’ll be in touch shortly.

Jim Mitchell
(616) 466-7793
[email protected]

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Disclaimer:

This information is solely for credit union and mortgage professionals and should not be distributed or provided to consumers or the general public.

This is not an offer for extension of credit nor a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Certain restrictions may apply. All approvals subject to underwriting guidelines. Not all applicants will qualify. Member Advantage Mortgage, LLC is an Equal Housing Lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

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