Borrowers are finally beginning to see more affordable mortgage rates, which have been falling steadily recently. The average 30-year fixed-rate mortgage rate, for example, dropped to a three-year low of 6.13% in late September, which was due, in large part, to the Federal Reserve lowering interest rates for the first time in 2025. Falling rates are a welcome change for homebuyers and those looking to refinance but have been on the sidelines waiting for more affordable terms.
And, there may be good news on the horizon for borrowers, who could see another Federal Reserve rate cut happen in October when the Fed meets again. While mortgage rates aren’t directly set by the Fed, they often move in the same direction. So, as we turn the page to October, how would another rate cut impact mortgages? Here’s what the experts say.
Find out how affordable your mortgage loan options could be today.
How an October Fed rate cut could impact mortgages, according to experts
While borrowers may be hoping for another large dip in mortgage rates, a potential October Fed rate cut may not impact the cost of mortgage loans as much as many expect, experts say. That’s because markets often anticipate these decisions in advance and price in adjustments long before the Fed meets.
How an October Fed rate cut could impact mortgages, according to experts
