We Do
Mortgages.

Get approved for your home loan by a loan officer near you.

We Are Local.

UMortgage LOs have a focus on serving their local communities while also having a nationwide reach that's rapidly growing.

Our Loan Officers

You've Got Q's, We've Got A's.

Market Update

Housing Market Update | Week of September 8th

Mortgage rates dropped to a new yearly low after last week’s jobs data highlighted a terrible current state of the labor market. Total nonfarm payroll employment was just 22,000 in August, significantly lower than estimates of +75,000. Overall, job growth has stalled since April. This data all but confirmed that the Fed should cut rates during its September meeting next week. Once these job numbers came in, the 10-year yield plummeted; it peaked last week at 4.3% and has since dropped all the way to 4.05% as of this morning. This took the mortgage rate to a new yearly low with room to fall further. We have our PPI and CPI inflation reports coming this week. So long as inflation doesn’t rise out of control, we could see rates inch closer to 6%. Last Week's Mortgage Rate Recap Rates Dropped Mortgage rates plummeted on Friday after the BLS jobs report came in significantly lower than expected. The headline figure of 22,000 jobs created in August was significantly lower than expectations and brought the unemployment rate up to 4.3%. Not only that, but June’s job figures were also revised lower to a negative number, breaking a 54-month streak of job gains reported by the BLS. The average duration of unemployment rose to 24.5 weeks, which is the highest since April 2022 and suggests that people are having a hard time finding a job once they’re unemployed. The Federal Reserve has long suggested that, to justify a rate cut, the labor market would have to weaken significantly. The jobs data since April has shown little to no growth, which has led most economists to expect at least a 0.25% cut to the federal funds rate next week and between 2 and 3 rate cuts between now and the end of the year. This Week's Mortgage Rate Forecast Rates Have Room to Drop More This week has two primary focuses: the market’s continued reaction to last week’s labor data and a fresh batch of inflation data on Wednesday and Thursday. With inflation continuing to highlight the impact of tariffs on the economy, the Fed will keep an eye on these figures. Unless inflation rises out of control, though, these figures shouldn’t have much of an impact on rates. Currently, economists expect core CPI and core PPI to each rise by 0.3%. Now more than ever, your buyers are likely wondering what these headlines mean for them. It’s important to note that mortgage rates usually drop before the Fed cuts rates and tend to rise slightly after the rate cut is official. If you have any questions about the market or want to connect any of your buyers with a UMortgage Loan Originator, follow this link to connect with an expert near you!

Published September 8, 2025

Market UpdateMortgage

How the Federal Reserve Impacts Mortgage Rates (And How It Doesn't)

If you’ve been watching the news lately, you’ve probably seen a lot of headlines about the Federal Reserve and interest rates. And if you're a homebuyer or a real estate agent working with buyers, you might wonder: Does the Federal Reserve control mortgage rates? It’s a great question. And the short answer is: Not necessarily. The longer answer is a bit more nuanced because while the Fed does play an important role in the economy, it doesn't directly control mortgage rates. What Is the Federal Reserve and the Federal Funds Rate? The Federal Reserve, often referred to simply as the Fed, is the central bank of the United States. Its primary job is to keep the economy healthy by keeping inflation in check, supporting the labor economy, and promoting stable & sustainable economic growth. One of the main tools the Fed uses to manage the economy is the Federal Funds Rate. This is the interest rate banks charge one another for overnight loans. While consumers don’t pay this rate directly, it has a ripple effect across the economy, influencing rates on credit cards, auto loans, and savings accounts. How the Federal Funds Rate Influences the Economy When the Fed raises the Federal Funds Rate, it becomes more expensive for banks to borrow money. That tends to result in higher borrowing costs for consumers and businesses in an attempt to slow down inflation and prevent the economy from overheating. When the Fed lowers the rate, borrowing becomes cheaper. This encourages more spending and investment, often a strategy used during economic slowdowns or recessions. Important distinction: The Federal Funds Rate influences the economy, but it does not directly control mortgage rates. Why Mortgage Rates Don’t Always Follow the Fed Here’s where a lot of confusion begins. Many people assume that when the Fed raises interest rates, mortgage rates automatically rise too. But that’s not how it works. Mortgage rates are driven by a different set of economic factors, mainly the bond market. Specifically, rates are closely tied to the 10-year Treasury yield and the performance of mortgage-backed securities (MBS). Investors who buy these securities care most about the labor market, inflation, the long-term economic outlook, and market stability/instability If inflation is rising or expected to rise, mortgage rates tend to increase. If economic conditions appear weak or uncertain, rates can fall, even if the Fed is raising the Federal Funds Rate. In fact, mortgage rates often move in anticipation of what the Fed might do, not just in response to what it has done. The markets are always looking ahead. What Really Drives Mortgage Rates? Here’s a quick snapshot of the major factors that impact mortgage rates: Inflation: Higher inflation usually = higher mortgage rates. Economic Growth: A strong economy can lead to higher rates. Global Events: Uncertainty (like geopolitical conflict or pandemics) can drive rates lower. Bond Market Demand: More demand for mortgage bonds often = lower mortgage rates. In other words, mortgage rates are influenced by a wide range of factors and are always forward-looking. Want more in-depth analysis of the housing market? Check out our weekly Housing Market Update blog. How Homebuyers and Real Estate Can Navigate the Market For homebuyers and the real estate agents supporting them, the key takeaway is this: Don’t assume that a Fed rate cut means mortgage rates are going down. In some cases, mortgage rates don’t move much on the day that the Fed cuts rates. Most of the time, they will drop in the lead-up to a Fed Meeting if a rate cut is expected. Other times, they might drop after a Fed announcement, depending on how markets interpret the economic outlook. If you’re considering buying a home or are an agent for a hesitant buyer, here’s how you should navigate periods of market instability: Focus on personal goals and timing, rather than trying to time the market. Work with a knowledgeable mortgage professional who can explain how market shifts impact your unique situation. Make informed decisions based on the bigger picture, not just headlines. Whether you're buying, selling, or considering a refinance, UMortgage Loan Originators are here to help you navigate the market with confidence and leverage homeownership to build wealth. If you’re curious about your homebuying or refinance options and want expert guidance, fill out this form to get connected with a UMortgage Loan Originator in your area!

Published August 13, 2025

Refinance, Loan Types, Mortgage

How to Consolidate Debt Using Your Home Equity

Refinance

5 Things You Need to Do to Prepare for a Refinance

Mortgage

Your Guide to UMortgage's 1% Down Payment Program

Mortgage

What Are Seller Concessions? A Simple Guide for Homebuyers and Sellers

View All Blogs

Mortgage Planning Made Easy.

Our easy-to-use calculators help you estimate and optimize your mortgage solutions.

Find your monthly payment.

What does a monthly mortgage payment look like for you? Get an estimate with some basic information.

Estimated Monthly Payment

$0 /mo

See Payment Breakdown Apply Now

The UMortgage mortgage calculators are for estimation purposes only. This is not a commitment to lend. For an exact quote based on your individual financial circumstances, please contact us.

Experience is
Everything.

If an industry leading 95 Net Promoter Score isn't enough, take it from borrowers that have worked with us.

Find a Local Loan Originator

Kristy Lynn

David is absolutely wonderful! He made this entire process in getting a VA Loan as simple as it could have possibly been for my first mortgage! I have and will continue to recommend him to every Veteran I know. Thank you for everything, David.

Raymond Gummer

I had a difficult mortgage due to county issues etc. Fortunately I also had the best people working for me. You'll never regret a moment having Corey on your side. He's so dedicated to the customer, keeps you up-to-date on everything, and is just one hell of a guy. I have my first home because Corey made it happen, and I couldn't thank him enough. This guy is truly top of his game and I'm blessed to have had him on my team.

Susan Lenhardt

I can't say enough good things about Vinnie. If you want someone that contacts you right away and is there for you and your buyers the entire time through the whole process then you have to talk to Vinnie and see for yourself. My buyers are always very pleased with his professionalism and efficiency. He definitely goes the extra mile for them. They appreciate it and so do I.

Kristy Lynn

Raymond Gummer

Susan Lenhardt

Dominique Bell

Nicole was an absolute pleasure to work with! From the first conversation we had I knew we were going to be a great team for our buyer. She is thorough and communicates each step throughout the entire process up until closing day and she got my buyer $10k in grants! Thank you Nicole for all your hard work!

Yuritt Pasos

Brian and his team are amazing. From the first time I met Brian, he took the time to explain every step of the process with great patience and knowledge. I can honestly say I never expected for this process to feel so easy but Brian made it possible. I will always be thankful for all the support provided.

Meredith Smith

My family had a fantastic experience with Sunnie! Extremely capable and supportive, she helped us through the whole process with ease and a personal touch. We can't thank her enough! Even years after we closed our home, she still provides us with advice and encouragement. Thank you Sunnie!

Miranda Adams

I went through UMortgage using a VA home loan, and the agents I worked with were amazing! They worked all hours to help us get into a house and we were able to close in under 30 days! Amazing communication from both team members involved, Melly and Andy. They really made the difference in us being able to buy our first home. Huge thank you to the UMortgage team!

Nathalie Montes

I’ve had the pleasure of working with Lisa over the past year, and I can confidently say she is one of the best lenders in the industry. Her expertise with a wide range of loan products and dedication to finding the best solutions for my clients truly set her apart. Lisa goes above and beyond to secure excellent rates while ensuring a smooth, professional, and timely process from start to finish. If you’re looking for a knowledgeable, responsive, and trustworthy lender, Lisa is the one to call! I look forward to continuing our partnership and highly recommend her to anyone in need of a top-notch mortgage expert.

Find a Local Loan Originator

Become a
Confident
Buyer.

Get expert mortgage and local real estate market advice all in one. We support your VA loan process every step of the way.

Explore More Resources

Who is UMortgage?

UMortgage is a national mortgage company that connects you with experienced mortgage brokers in your area. UMortgage's local Loan Officers use UMortgage's vast portfolio of lenders and loan products to ensure you get the most affordable mortgage possible that is tailored to your individual financial needs and homeownership goals.

How does a mortgage work?

A mortgage is a loan used to buy a home, with the house serving as collateral until the loan is repaid. You make monthly payments that cover both the loan amount and interest across the life of the loan, which most commonly spans between 15-30 years.

How do I get pre-approved?

Getting pre-approved with UMortgage is easy! You can get connected with a local UMortgage Loan Officer who will do all the heavy lifting for you by filling out some basic information in this form.

How do I find out how much I can spend on a home?

Your UMortgage pre-approval will provide you with an accurate estimate of your buying power to help you shop for homes within your budget. You can use our free affordability calculator for a more general estimate of your budget.

What are the benefits of working with a UMortgage Loan Officer?

UMortgage's Loan Officers help you access the most affordable mortgage by shopping for the lowest rate on your behalf and offering a mortgage specifically tailored to your financial needs. UMortgage prides itself on its exceptional customer experience—exemplified by our industry-best 95 Net Promoter Score—and guides you through the homebuying process & beyond with care.

What types of mortgages does UMortgage offer?

UMortgage offers expert services for all the major mortgage types: Conventional, FHA, VA, USDA, and Jumbo Loans. UMortgage also offers rate & term refinances, cash-out refinances, VA IRRRLs, and FHA Streamlines. Get connected with a UMortgage Loan Officer to learn what type of mortgage will set you up for long-term financial success.

How long does it take to get a mortgage with UMortgage?

Turn times vary from client to client, but UMortgage proudly gets clients from loan application (after you've had an offer accepted on a home) to the closing table in 2 weeks. You can read this blog for more insight into UMortgage's homebuying process.

Get approved in just minutes!

APPLY NOW