Today’s Mortgage Rates – October 31: 30-Year FRM Goes Down to 6.17%

If you're looking to buy a home or refinance, the news is pretty good right now! Mortgage rates have actually dipped a bit this week, offering a welcome break from the higher numbers we saw just a year ago. This is a great time to be exploring your options. According to Freddie Mac, a trusted source for mortgage data, the average rate for a 30-year fixed mortgage has eased to 6.17%. That’s two basis points lower than last week and, importantly, a solid 55 basis points below where we were at this time last year.

It’s not just the longer-term loans that are seeing improvement. The 15-year fixed mortgage rate has also dropped by three basis points, now sitting at 5.41%. This is also more than half a point lower than last October. These numbers are significant because even small shifts in mortgage rates can translate into hundreds, or even thousands, of dollars saved on your monthly payments over the life of your loan.

Sam Khater, Freddie Mac’s chief economist, noted, “The last few months have brought lower rates, and homebuyers are increasingly entering the market.” I completely agree with this observation. When rates become more approachable, it definitely encourages more people to take the plunge and buy a home. It’s a positive feedback loop for the housing market.

Today's Mortgage Rates – October 31: Lower Rates Signal a Smart Time to Buy a Home

A Deeper Look at Current Rates

While Freddie Mac gives us a weekly snapshot, Zillow often provides daily updates. For October 31st, 2025, their data paints a clear picture of current national averages. It’s important to remember these are averages, and your individual rate will depend on many factors, including your credit score, down payment, and the specific lender.

Here’s a breakdown of the current mortgage rates according to Zillow:

Loan Type	Rate
30-year fixed	6.29%
20-year fixed	5.99%
15-year fixed	5.51%
5/1 ARM	6.68%
7/1 ARM	6.72%
30-year VA	5.68%
15-year VA	5.30%
5/1 VA	5.71%

As you can see, the 30-year fixed rate from Zillow is marginally higher than Freddie Mac’s weekly average, sitting at 6.29%. This slight difference isn't unusual; different data aggregators can have slightly different methodologies. What’s most important is the general trend, which is toward lower rates compared to last year.

Refinancing Today: Is It Still a Good Idea?

Let’s not forget about homeowners looking to refinance. Refinancing can be a powerful tool to lower your monthly payments, shorten your loan term, or tap into your home's equity. Zillow also provides current mortgage refinance rates:

Loan Type	Rate
30-year fixed	6.41%
20-year fixed	5.96%
15-year fixed	5.68%
5/1 ARM	6.89%
7/1 ARM	6.97%
30-year VA	5.90%
15-year VA	5.73%
5/1 VA	5.71%

Notice that refinance rates are generally a little higher than purchase rates. This is common due to various lender products and pricing strategies. If you're considering refinancing, it's crucial to compare offers from multiple lenders. You want to ensure the savings you achieve from a lower rate outweigh any closing costs associated with the refinance. Generally, if you can get a rate at least 0.5% to 1% lower than your current rate, it's often worth exploring, especially if you plan to stay in your home for several more years.

What's Driving These Rates? The Federal Reserve's Latest Moves

The mortgage rate environment doesn't exist in a vacuum. It's heavily influenced by broader economic policies, particularly those from the Federal Reserve. I've been following the Fed's actions closely, and their recent decisions are quite telling.

On October 29, 2025, the Federal Reserve made its second consecutive interest rate cut, lowering its benchmark rate by 0.25 percentage points. This brings the target range down to 3.75% to 4.00%. This move signals that the Fed is growing concerned about economic softening, especially in jobs.

However, there's a bit of a twist. Fed Chair Powell's commentary has been cautious. He indicated that another rate cut in December is “not a foregone conclusion.” Why the mixed signals?

• Conflicting Economic Data: The labor market shows signs of weakening, which usually prompts the Fed to cut rates. But at the same time, inflation is still a bit higher than their 2% target, which makes them hesitant to cut too aggressively.
• Government Shutdown: Unfortunately, the federal government shutdown has disrupted the flow of economic data. This lack of timely information makes it harder for the Fed to make confident decisions about the future.
• Ending Quantitative Tightening (QT): A significant policy shift occurring is the end of the Fed's reduction of its asset holdings. This will begin on December 1, 2025. Ending QT can provide a bit of a supporting hand to financial markets, including mortgages.

Market Reactions and What It Means for You

The Fed's cautious tone after the rate cut caused a bit of volatility in the markets. The 10-year Treasury yield, which mortgage rates often track, ticked up to around 4.08%. This happened because Powell’s words suggested that more rate cuts might not be immediately on the horizon.

So, what does this mean for you right now, especially concerning mortgage rates?

• Near-Term Stability: The slight increase in Treasury yields suggests that mortgage rates might settle in the mid-6% range for now, rather than continuing their rapid descent.
• Increased Sensitivity: The market will be paying very close attention to economic reports in November. Any data that shows the economy strengthening or inflation picking up could cause rates to move higher, while data showing continued weakness would likely keep them steady or push them down.
• December Uncertainty: Because the Fed is so focused on the incoming data, the December meeting outcome is still very much up in the air.

Impact on the Housing Market

These rate movements have ripple effects on the housing market itself:

• For Buyers: While the window of rock-bottom rates might be momentarily closed, the current environment is still much more favorable than the peaks we saw in 2024. If you can afford the payments at today's rates, and you find a home you love, it's still a good time to buy, but perhaps be prepared for slightly less dramatic rate drops in the immediate future.
• For Sellers: Housing demand should remain pretty solid. While things might not be moving at a sky-high pace, steady demand is good news for sellers.
• Refinance Opportunities: If your current mortgage rate is above 6.75%, you likely still have a good opportunity to refinance. However, the absolute best rates of this cycle might have already passed. It's always about finding the best rate for your specific situation.

Key Factors to Keep an Eye On

As we move through November and into December, here are the crucial things I'll be watching:

1. Post-Shutdown Economic Data: How the economy performs in November, once data reporting returns to normal, will be critical.
2. Labor Market Trends: Continued job losses or a significant slowdown would put more pressure on the Fed to cut rates.
3. Inflation Readings: If inflation starts to creep up again, it could put the brakes on any further rate cuts.
4. Market Technicals: The end of quantitative tightening could provide some support and help cap any significant rate increases.

Strategic Considerations for Borrowers

My personal advice?

• Lock When You Can: If you find a rate that works for your budget and makes your purchase or refinance financially sound, don't be afraid to lock it in. The path to significantly lower rates looks a bit less certain for now.
• Shop Around: This is non-negotiable. Get quotes from at least three different lenders. Even a small difference in percentage points can save you a lot of money.
• Understand Your Options: Whether it’s a fixed-rate mortgage or an adjustable-rate mortgage (ARM), understand the pros and cons of each and what fits your long-term financial plan.

Bottom Line: The Fed is signaling a move to support the economy, but they're doing it cautiously. Mortgage rates are significantly better than they were a year ago, offering buyers and refinancers a much-needed reprieve. However, expect things to be a bit more stable with potential for some volatility as we await more economic data. It's a nuanced market, but one that still presents good opportunities.