Housing News

Mortgage Rates Fall Again, Reaching Lowest Level in 2025

Mortgage rates continued to decline in the last week, much to the delight of homebuyers and homeowners alike.

Rates averaged 6.17% for 30-year, fixed-rate loans in the week ending Oct. 30, according to Freddie Mac data. That’s down from 6.19% in the previous week and down from last year at this time, when rates were 6.72%.

This marks the fourth straight week of declines and represents the lowest that interest rates have been at any point in 2025.

Rates fell in anticipation of the U.S. Federal Reserve cutting its benchmark interest rate, which it did earlier this week. Mortgage rates are not tied directly to the Federal Funds rate. But when the market expects the Fed to cut its rates, mortgage rates tend to move down. That’s exactly what happened.

These lower rates are welcome news for people looking to buy a home and those who want to refinance their existing home loan.

“The last few months have brought lower rates and homebuyers are increasingly entering the market,” said Sam Khater, Freddie Mac’s chief economist.

It’s not just homebuyers that are taking advantage of these lower rates. Homeowners are increasingly seeking to refinance their mortgage, according to new data from the Mortgage Bankers Association (MBA).

Any time interest rates go down, it has the potential to lower monthly housing payments for homeowners.

Mortgage applications were up 7.1% in the week ending Oct. 24 compared to the previous week, per the MBA.

But the biggest piece of news is that refi applications are up 111% from last year at this time.

“As we approach the end of the year, listing activity tends to slow and would-be sellers decide to wait until after the new year to list,” said Bright MLS Chief Economist Lisa Sturtevant in a statement. The multiple listing service covers the mid-Atlantic region.

“For prospective buyers who are financially ready, right now could be a sweet spot for lower rates and more inventory.”