Mortgage Rates Reach Lowest Average in Over a Year

In October, mortgage rates in the United States hit their lowest average level in more than a year. Freddie Mac reported that the 30-year fixed-rate mortgage averaged 6.25%, a decrease of 10 basis points from September and 17 basis points from the same month last year.

The 15-year fixed mortgage rate fell slightly by 1 basis point to 5.49%, which is also 11 basis points lower than a year earlier. Meanwhile, the 10-year Treasury yield, an important measure for long-term borrowing, averaged 4.09% in October, down 5 basis points from September.

“Markets priced in rate cuts from the Federal Open Market Committee (FOMC) at the beginning of the month.”

This expectation kept rates steady even after the FOMC announced a 25-basis-point reduction to the federal funds rate in October. Falling mortgage rates seem to have encouraged more housing activity across the board.

According to the Mortgage Bankers Association, applications for both refinancing and home purchases have increased. Existing home sales also rose in September to their highest level in seven months. However, data for new home sales remains unavailable due to an ongoing government shutdown.

The broader housing market still faces challenges, including a slowing job market, persistent inflation, and economic uncertainty. The upcoming Supreme Court decision on tariff legality and limited access to recent economic indicators have left the outcome of the December FOMC meeting difficult to predict.

Author’s summary: Mortgage rates dropped to their lowest in a year, boosting some housing activity, but economic instability and inflation continue to cloud the outlook.

National Association of Home Builders — 2025-11-04

Mortgage Rates Reach Lowest Average in Over a Year

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