Mortgage rates have dipped again, with the national average for a 30-year fixed loan falling to 6.25%, according to Bankrate’s October 29 survey. This marks the lowest level in 12 months, down from 6.88% a year ago and slightly below last week’s 6.26%. The decline follows two consecutive Federal Reserve interest rate cuts, which have eased borrowing costs across the economy.
While the drop offers relief to homebuyers, experts caution that affordability challenges remain due to high home prices and limited inventory.
Current mortgage interest rates fell to 6.25% for 30-year fixed loans as of October 29, 2025, based on Bankrate’s national lender survey. The decline is attributed to Federal Reserve rate cuts and bond market reactions, which influence mortgage pricing. Rates for 15-year fixed loans now average 5.50%, and jumbo loans sit at 6.44%. The drop offers potential savings for buyers and refinancers, though housing affordability remains strained.
Rate Breakdown and Affordability Metrics
- 30-Year Fixed: 6.25%
- 15-Year Fixed: 5.50%
- Jumbo Loans: 6.44%
- Points: Average 0.33 (discount + origination)
- Median Home Price: $415,200
- Median Family Income: $104,200
- Estimated Monthly Payment: $2,045 (with 20% down)
Mortgage rates are now 85 basis points lower than they were at the start of 2025.
Quotes and Reactions
Lisa Sturtevant, Chief Economist at Bright MLS, said:
“Lower rates could spur some activity, but it likely won’t be enough to break the market’s logjam.”
Melissa Cohn of William Raveis Mortgage added:
“The initial reaction in bonds is muted, and mortgage rates are steady.”
Mark Hamrick, Bankrate’s senior analyst, warned:
“Confidence in the U.S. economic outlook is being undermined by the federal shutdown.”
Buyer Behavior and Market Trends
The rate drop may encourage first-time buyers and refinancers, especially those holding mortgages above 7%. However, high home prices, economic uncertainty, and limited listings continue to restrict market movement. Millions of homeowners remain locked into sub-4% pandemic-era mortgages, reducing resale activity.
The housing market remains price-sensitive, and further rate cuts or price declines may be needed to restore balance.
What’s Next: Rate Forecast and Buyer Strategy
- Next Fed Meeting: December 17–18, 2025
- Rate Outlook: Analysts expect another 25 bps cut
- Buyer Tips:
- Lock rates early
- Compare lender offers
- Monitor Treasury yield trends
Experts recommend acting soon before rates rebound or inflation pressures return.
