Lower Rates? Don’t Relax Just Yet

Mortgage rates stayed mostly flat this week, holding near 10-month lows. Here’s what happened from August 18–20 and why upcoming economic data could shake things up.
Aug 20, 2025

Over the past few days, mortgage rates have remained relatively steady—but don’t let the calm fool you. Here's what happened over the past three business days and why this quiet might not last much longer.

Monday, August 18th
Mortgage rates began the week at some of the highest levels we’ve seen in August, though still well below the peaks of the past 10 months. The difference between recent highs and lows has been very small, meaning rates are holding a tight range near 10-month lows. The start of the week was light on economic data, and market watchers weren’t expecting much movement unless a surprise headline hit. Even the upcoming Fed event in Jackson Hole wasn’t expected to shake things up like a jobs or inflation report might.

Tuesday, August 19th
Average 30-year fixed rates hovered around 6.59% for the average 30-year fixed loan. That’s just slightly higher than where they were last week. Despite some volatility in Treasury yields, mortgage rates barely budged—typical for this time of year. August tends to be a quieter month in the bond market. Without a major catalyst, the market is simply waiting for more impactful data to come later this week.

Wednesday, August 20th
Rates inched a bit higher again today, now averaging around 6.61%. Most of this increase happened gradually over the past several days. For context, that’s about $400 more in points per $100,000 borrowed than you would’ve paid last week. The Federal Reserve minutes were released this afternoon, but they didn’t contain any major surprises. The Fed is still more focused on inflation than jobs, and it’s clear that unless job market data weakens significantly, rate relief could take longer than buyers might hope.

Bottom Line:
Mortgage rates are holding steady near 10-month lows, but they’re creeping slightly higher as the market waits for new data. If you’re considering buying or refinancing, now is a good time to review your options while rates remain relatively favorable.

Have Questions or Want to Talk Through Your Options?
Whether you're planning to buy, refinance, or just want clarity on what today’s rates mean for you, I’m here to help.
Simply fill out the contact form on this page or give me a call—I’d be happy to walk you through your next steps.

#MortgageRates #HousingMarketUpdate #HomeBuyingTips #RefinanceOptions #InterestRateNews #RealEstate2025 #MortgageTrends #WeeklyRateUpdate

Source: Mortgage News Daily

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.


👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.