Today’s Mortgage Rates – October 27: Rates Hit Yearly Low, Time for Buyers to Lock In

Thinking about buying a home or refinancing the one you have? Here’s the definitive scoop on Today's Mortgage Rates – October 27, 2025: we are officially seeing the lowest average rates in over a year. The average 30-year fixed-rate mortgage has dipped to 6.09%, giving a lot of people a much-needed sigh of relief and a reason to jump back into the market.

It's a mixed bag today, but the overall trend is one that should make you optimistic. While some shorter-term rates saw a tiny nudge upward, the all-important 30-year fixed rate, which is the benchmark for most homebuyers, has continued its gentle slide downward. Let's dive into the specific numbers and what they mean for you.

Today's Mortgage Rates – October 27: Rates Hit Yearly Low, Time for Buyers to Lock In

Current Mortgage Rates: A Detailed Look

Here's a breakdown of the national average rates for today, according to the latest data from our friends at Zillow. Remember, these are national averages, so your actual rate will depend on your credit score, down payment, and location.

Mortgage Product	Average Interest Rate
30-Year Fixed	6.09%
20-Year Fixed	5.75%
15-Year Fixed	5.44%
5/1 ARM	6.22%
7/1 ARM	6.53%
30-Year VA Loan	5.58%
15-Year VA Loan	5.01%

As you can see, the 30-year fixed rate is sitting at a very attractive 6.09%. For military service members and veterans, VA loan rates are looking even better, with the 15-year VA loan dipping to just a hair above 5%.

What About Refinance Rates?

If you're a current homeowner, you might be wondering if now is the time to refinance. With rates this low, many people who bought in the last year or so could potentially lower their monthly payments.

Here are today’s mortgage refinance rates, also from Zillow:

Refinance Product	Average Interest Rate
30-Year Fixed Refinance	6.24%
20-Year Fixed Refinance	5.84%
15-Year Fixed Refinance	5.64%
5/1 ARM Refinance	6.47%
7/1 ARM Refinance	6.62%
30-Year VA Refinance	5.72%

Refinance rates are typically a little higher than purchase rates, but these numbers are still fantastic compared to what we've seen. If your current rate is above 7%, I’d strongly recommend running the numbers to see if a refinance makes sense for you right now.

What's Driving These Rates? All Eyes on the Fed

So, why are we seeing this downward trend? The big story this week is the Federal Reserve.

• An Expected Rate Cut: The market is buzzing with anticipation. All signs point to the Fed cutting its benchmark federal funds rate by 25 basis points (or 0.25%) later this week.
• Reading the Economic Tea Leaves: This move isn't happening in a vacuum. The Fed is responding to clear signals that the economy is cooling off. We've seen persistent, though moderating, inflation and a job market that is finally showing signs of softening after years of running red-hot.
• The Fed's Ripple Effect: Now, it's a common misconception that the Fed directly sets mortgage rates. They don't. But their decisions create powerful ripples across the entire financial system. The Fed's rate influences the yields on 10-year Treasury notes. Think of these Treasury notes as the foundation upon which mortgage rates are built. When their yields go down, mortgage rates almost always follow suit. That’s exactly what we're seeing play out.

The Bigger Picture: Mortgage Rate Trends in 2025

After the wild ride of rate hikes in 2024, this year has been about finding a new, more stable footing. Rates peaked last year, and since the beginning of 2025, we've seen a steady, albeit slow, decline. Today's rates are simply the latest milestone in that welcome trend.

However, we have to talk about the “golden handcuffs.” This is a term I use to describe homeowners who locked in unbelievable rates of 2.5% or 3.5% during the pandemic. They are understandably reluctant to sell their homes and give up that amazing mortgage, only to buy a new one at a rate around 6%. This phenomenon is a major reason why the housing inventory has been so tight.

How Are These Rates Affecting the Housing Market?

The impact of these falling rates has been fascinating to watch.

• Refinancing is Back in a Big Way: The drop in rates has been like a starting gun for homeowners. For several weeks now, refinance applications have made up more than half of all mortgage applications. People are seizing the opportunity to lower their monthly payments.
• Homebuyers are Cautiously Optimistic: For new buyers, the effect has been a bit more subdued. Yes, the lower rates are a huge help with affordability. But after years of high prices and economic uncertainty, some buyers are still on the sidelines, worried about the job market. Others, however, see this as the window of opportunity they've been waiting for.
• A Welcome Boost to Market Confidence: Overall, the combination of falling rates and home prices that are finally moderating (instead of skyrocketing) has injected a dose of confidence back into the market. We're seeing a modest, but healthy, rise in home sales as a result.

Predictions: What's Next for Mortgage Rates?

As someone who watches this market every single day, here's my take on where we're headed.

Fannie Mae's latest forecast, released just this month, predicts that mortgage rates will continue their gradual decline. They project the 30-year fixed will end 2025 at 6.3% and fall further to 5.9% by the end of 2026. This seems like a very reasonable and likely scenario to me.

However, I think it's crucial to set realistic expectations. I don't believe we will see a return to the ultra-low 2-3% rates of the pandemic era anytime soon, if ever. The government's fiscal pressures and the sheer size of the national debt will likely keep a floor under how low long-term rates can go.

The inventory shortage caused by the “golden handcuffs” will also remain a major factor. Until more homeowners feel comfortable letting go of their low-rate mortgages, the number of homes for sale will remain limited, which will help keep prices stable.

What Should You Do Today?

With all this information, the most important question is: what does it mean for you?

• For Homebuyers: If you're in a financially stable position, this is one of the best windows to buy a home that we've seen in the last 18 months. My advice is to get pre-approved immediately. A pre-approval will show you exactly what you can afford at today's rates and makes you a much stronger buyer in the eyes of a seller.
• For Homeowners: If your current mortgage rate starts with a “7” or higher, now is the time to seriously explore refinancing. A drop of even one percentage point can save you hundreds of dollars a month and tens of thousands over the life of your loan.

No matter your situation, the key is to shop around. Don't just talk to one lender. Get quotes from at least three different lenders—banks, credit unions, and mortgage brokers—to ensure you're getting the absolute best deal possible.