Today’s Mortgage Rates – October 29: Rates Remain Volatile as Fed Decision Looms

Mortgage rates continued their choppy trajectory today, reflecting uncertainty in the broader financial landscape. According to Zillow, the average rate for a 30-year fixed mortgage fell by five basis points to 6.16%, while the 15-year fixed rate rose three basis points to 5.43%. This split movement mirrors the day-to-day fluctuations in 10-year Treasury yields, which often serve as a benchmark for mortgage pricing.

With no clear directional trend, mortgage rates remain volatile heading into the final stretch of 2025. Let's dive in and see what these shifts could mean for you.

Today's Mortgage Rates – October 29: Rates Remain Volatile as Fed Decision Looms

Where Do Mortgage Rates Stand?

According to Zillow's latest numbers for today's mortgage rates, here's what we're seeing:

Loan Type	Average Rate
30-year fixed	6.16%
20-year fixed	5.72%
15-year fixed	5.43%
5/1 ARM	6.44%
7/1 ARM	6.57%
30-year VA	5.62%
15-year VA	5.18%
5/1 VA	5.68%

It's important to remember that these are national averages. Your own rate could be higher or lower depending on your credit score, the size of your down payment, and the specific lender you choose. Think of these as the general tide, but your personal boat might ride a little differently.

Refinance Rates Today

If you're already a homeowner and thinking about refinancing, the rates you'll see might be slightly different. Lenders often have different pricing for refinances compared to new purchases. Here's a look at Zillow's data for today's mortgage refinance rates:

Loan Type	Average Rate
30-year fixed	6.21%
20-year fixed	5.87%
15-year fixed	5.73%
5/1 ARM	6.77%
7/1 ARM	6.84%
30-year VA	5.74%
15-year VA	5.57%
5/1 VA	5.45%

Notice how the refinance rates are generally a touch higher than the purchase rates. This is common as lenders assess different risk factors for existing mortgages versus new ones.

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

You can't talk about today's mortgage rates without mentioning what the big players are up to. The biggest event casting a shadow – or perhaps a ray of hope – over the market today is the Federal Reserve's policy meeting. This two-day meeting began yesterday, October 28th, and wraps up today, October 29th.

The Federal Open Market Committee (FOMC), the part of the Fed that sets interest rate policy, is releasing its decision today at 2 p.m. EDT. Following that, Fed Chair Jerome Powell will hold a press conference to explain their thinking.

Here’s what you should be aware of regarding the Fed meeting:

• The Big Announcement: Look for the interest rate decision to drop at 2 p.m. EDT.
• Powell Speaks: At 2:30 p.m. EDT, Fed Chair Powell will offer more insights.
• The Expected Move: The market is pretty much expecting a 25-basis-point rate cut. If this happens, it would bring the Fed's target interest rate range down to 3.75%–4%.

Why does this matter so much for mortgage rates? The Fed's actions don't directly set your mortgage rate, but they strongly influence it. When the Fed cuts its benchmark interest rate, it generally becomes cheaper for banks to borrow money. This, in turn, often leads to lower interest rates on other types of loans, including mortgages.

A Quick Look Back: The Fed's Recent Moves

To understand where we might be going, it's helpful to remember where we've been. The central bank has been making adjustments to try and manage the economy. Just back on September 17, 2025, the Fed made its first rate cut of the year. They lowered their benchmark interest rate by a quarter percentage point, moving the target range from 4.25%-4.5% down to 4.0%-4.25%.

This was a significant move because it followed a period of five meetings where they had held rates steady. Before that pause, in the latter part of 2024, there had been three cuts. So, seeing the Fed start cutting again signals they might be looking to stimulate the economy.

The Split: Why Aren't All Rates Moving Together?

You might be wondering why the 30-year fixed is going down while the 15-year fixed is inching up. This is a common phenomenon. Mortgage rates, especially the 30-year fixed, are heavily influenced by the 10-year Treasury yield. When the 10-year yield goes down, mortgage rates often follow. Think of the 10-year Treasury as a kind of general indicator for the cost of borrowing money over a longer period.

However, shorter-term products, like some ARMs, or even how lenders price different loan terms, can be affected by other factors, including the specific bank's own funding costs and their outlook on future interest rate movements. It's like having several different weather systems at play – they can all influence the day, but not always in the same direction.

My Take: What This Means for You

From my perspective, the fact that rates are still somewhat choppy and not locked into a clear downward trend means patience can be a virtue, but preparedness is key.

If you're looking to buy, especially if you're a first-time homebuyer, understanding these fluctuations is crucial. A small change in interest rate can really impact your monthly payment over the life of a 30-year loan. For example, a difference of just 0.25% on a $300,000 mortgage can mean paying thousands of dollars more over 30 years.

• For Buyers: If the Fed cutting rates makes you hopeful, that's understandable. However, don't assume rates will plummet overnight. Lock in a rate when you feel comfortable, rather than trying to time the market perfectly. That's a game even the experts struggle with!
• For Refinancers: If you're thinking about refinancing, now might be a good time to get quotes. Even if the national average is slightly up, your individual situation and lender might offer a better deal than you think. Compare offers carefully.

The current environment suggests that lenders are still a bit cautious. They're watching economic data closely and reacting to news. This means a significant shift in rates might not happen until we see more consistent positive or negative economic signals.

Looking Ahead: What to Watch For

As we move into the final stretch of 2025, the volatility in mortgage rates is likely to continue. Here's what I'll be keeping an eye on:

• Economic Data: Reports on inflation, jobs, and consumer spending will be huge factors. Stronger economic news might push rates up, while weaker news could push them down.
• Fed Commentary: Beyond today's announcement, listen to what Fed officials say in their speeches and public appearances. Their words can provide clues about future policy.
• Geopolitical Events: Global events can also unexpectedly influence financial markets and, consequently, mortgage rates.

In conclusion, today's mortgage rates are a reflection of ongoing economic adjustments. While the 30-year fixed rate has seen a minor dip, the market remains sensitive to developments like the Fed's policy decisions. Staying informed and working with a trusted lender are your best bets for navigating these waters successfully.