Federal Reserve Graph of 10-Year Treasury Note
...which is generally used as a base to set home mortgage rates.
😎 Anonymous September 19, 2025 at 9:13 PM "SECU employees do a great job at educating members about how an ARM is very often the better option. What would your argument be against offering a 30 year fixed if the member is educated on an ARM and still wants the 30 fixed?
First, I agree that SECU branch employees have done a remarkable job in explaining the benefits (many still have doubts!) of an ARM to a very, very skeptical membership. The 30-year fixed rate is the "industry standard"after all; and, those with vested interests in keeping it that way, emphasize the rising rate risk with some not so subtle boogeyman tactics.
Why? Because there is lots of money at stake (surprise, greed is involved!). Remember a 30-year fixed rate mortgage is a financial "heads I win, tails you lose" proposition for mortgage brokers, who now originate the vast majority of U.S. home mortgages.
✅ Here's the key for your consideration: A mortgage broker makes the loan, but doesn't "fund it". What do you mean "doesn't fund it"? Well, when we borrower to buy a home, "somebody" has to provide the money for the loan, right? (Most of us don't think about that side of the transaction!)
With brokers the investors are most often those GSEs (taxpayer guaranteed enterprises), currently under conservatorship by the Feds. The broker just wants to make the loan and isn't going to argue with you about which loan is best. A 30-year fixed rate is what you want, fix rate is what you get! The broker doesn't care because "somebody else" (the GSEs) is funding the loan; the broker isn't "on the hook".
😎 Lets take a look at the classic problem with an "SECU funded" 30-year fixed rate mortgage. See that low point in rates around 2021/2022, which was the result of the pandemic? Rates hit an all-time rock bottom.
Who "funds" our loans at the Credit Union? In 2021 and 2022 SECU made over $6 billion in 30-year fixed rate mortgages at around 3.25% and "funded" those loans with other SECU members' hard earned savings dollars!
Over the last 3 years, SECU has only been able to keep member deposits by paying 4% to 5% rates on CDs (the rest of member deposits earn substantially less!). Over the last 3 years, total SECU member CDs have grown from $4 billion to $15 billion - from less than 10% to @30% of total member deposits.
😎 SECU earns 3.25% for the next 30 years and pays members 4%/5%? Really? That's fantastic!
