Jennifer Wilford

Coast National Mortgage

What’s Ahead For Mortgage Rates This Week – September 22nd, 2025

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It has been a relatively light week following the recent rate changes, as the Federal Reserve has felt the need to drop the current rate by 25 basis points. They have also mentioned the possibility of two additional rate cuts within this year. This follows the recent sharp criticism from the current administration, which condemned the Federal Reserve’s insistence on maintaining existing interest rates.

This development coincides with the Leading Economic Indicators, which have shown that the U.S. economy remains in decline, a trend that began in August. With further rate cuts on the horizon, the broader market reaction has been a positive one.

Consumer Price Index
The Federal Reserve cut its benchmark interest rate by 25 basis points today, the first rate move since last year, as it penciled in two more reductions for this year.

Leading Economic Indicators
US declined by 0.5% in August 2025 to 98.4 (2016=100), after a small 0.1% increase in July (upwardly revised from an originally reported 0.1% decline). The LEI fell by 2.8% over the six months between February and August 2025, a faster rate of decline than its 0.9% contraction over the previous six-month period (August 2024 to February 2025).

Primary Mortgage Market Survey Index
• 15-Yr FRM rates saw a decrease of -0.09% for this week, with the current rate at 5.41%
• 30-Yr FRM rates saw a decrease of -0.09% for this week, with the current rate at 6.26%

MND Rate Index
• 30-Yr FHA rates saw an increase of 0.03% for this week. Current rates at 6.03%
• 30-Yr VA rates saw an increase of 0.04% for this week. Current rates at 6.05%

Jobless Claims
Initial Claims were reported to be 231,000 compared to the expected claims of 240,000. The prior week landed at 264,000.

What’s Ahead
U.S. Employment data is set to land next week, with the S&P Final Manufacturing PMI estimates to round up before the end of the year. 

Myths About Mortgages That Still Fool Homebuyers

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Buying a home is one of the biggest financial decisions most people will ever make, and the mortgage process can feel overwhelming. With so much information available, it is easy for myths to spread, and many homebuyers still believe ideas that are simply not true. Clearing up these misconceptions can make the path to homeownership less stressful and much more successful.

Myth One: You Need Perfect Credit

A common belief is that only people with flawless credit can qualify for a mortgage. While strong credit helps secure better rates, many loan programs exist for borrowers with less than perfect scores. Lenders look at the overall financial picture, including income, employment history, and debt, which means options are available even if your credit is not ideal.

Myth Two: You Must Have a Large Down Payment

Another myth is that you need 20 percent down to buy a home. Although putting more money down can reduce monthly payments and avoid mortgage insurance, there are many programs that require far less. Some allow as little as three percent down, while others assist qualified buyers with down payment support, making homeownership more accessible than many realize.

Myth Three: Renting Is Always Cheaper

Some buyers believe renting is the more affordable option, but this is not always true. Rent often increases over time, while a fixed rate mortgage offers stable monthly payments. Homeownership also builds equity and can provide long term financial advantages that renting cannot match.

Myth Four: You Cannot Pay Off a Mortgage Early

Many people think they are locked into a 30-year mortgage with no flexibility. Most loans allow extra payments toward principal without penalties. Paying a little extra each month or making occasional lump sum payments can reduce interest costs and shorten the loan term.

Understanding the truth behind these common myths can make homebuyers feel more confident and prepared. By separating fact from fiction, buyers can make smarter choices, explore all available options, and move forward with clarity on the path to owning a home.

Deciding Whether to Pay Extra Toward Principal or Save for Other Investments

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When it comes to managing your mortgage, one of the most common questions is whether to put extra money toward paying down the loan principal or to save that money for other investments. Both choices have advantages, and the right decision often depends on your goals, financial situation, and comfort with risk.

The Case for Paying Extra Toward Principal

Making additional payments directly to your mortgage principal reduces the amount of interest you pay over the life of the loan. Even small extra payments can shorten your mortgage term and save thousands of dollars on interest. For many homeowners, this approach provides peace of mind and a guaranteed return, since reducing debt always improves financial security.

The Benefit of Saving for Other Investments

On the other hand, investing outside of your mortgage may allow your money to grow at a higher rate than your mortgage interest. Retirement accounts, stock market investments, or even building an emergency fund can offer greater flexibility and potential for long term wealth. For borrowers with low interest rates, the opportunity cost of tying up money in the mortgage may outweigh the guaranteed savings.

Balancing Both Approaches

For many families, the best option is not an either-or choice but a balance. Contributing some extra funds toward the mortgage while still investing in retirement accounts or savings goals can provide both security and growth. This blended approach allows you to reduce debt while also building wealth for the future.

Deciding between paying extra toward your mortgage or saving for investments comes down to priorities. If you value financial certainty and want to become debt free sooner, paying extra toward the principal may be best. If you are focused on long term growth and maximizing returns, investing may be the smarter move. In many cases, combining the two strategies can give you the best of both worlds.

About

Recognized by Orange Coast Magazine as one of the top 2% of mortgage professionals in Orange County, Jennifer Wilford has been doing mortgage loans in Orange County for over 32 years. She has personally closed over 3000 home loans. In 2012, 2013, and 2014 she was honored to be named as a 5 Star Mortgage Professional by Orange Coast Magazine. She is the broker and owner of Coast National Mortgage. She can help you with any of your home financing needs, whether that be for the purchase of a home or a refinance.

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501 N El Camino Real Suite 200
San Clemente, CA 92672
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