Mortgage Interest Rates Today: Mortgage Rates Fall for 4th Consecutive Week to 6.17% After Fed’s Second Cut This Year

Mortgage rates pulled back Thursday to their lowest level in over a year, a day after the Federal Reserve cut interest rates for the second time this year as the government shutdown neared the one-month mark and major companies announced mass layoffs. 

The average rate on 30-year fixed home loans fell to 6.17% for the week ending Oct. 30, down from 6.19% the week before, according to Freddie Mac. Rates averaged 6.72% during the same period in 2024.

"Mortgage rates decreased for the fourth consecutive week," says Sam Khater, Freddie Mac's chief economist. "The last few months have brought lower rates and homebuyers are increasingly entering the market."

At the Federal Open Market Committee (FOMC) on Wednesday, the Fed's Board of Governors voted 10-2 to cut the Fed’s overnight rate by a quarter of a percentage point, down to a range of 3.75% to 4%—the lowest in nearly three years. 

This latest rate cut was widely anticipated and largely priced into mortgage rates, which have been easing in recent months. 

However, in his post-meeting remarks, Fed Chair Jerome Powell stressed that another rate cut in December is not guaranteed. 

"A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it," he said.

Realtor.com® senior economic research analyst Hannah Jones says in response to Powell’s comment, the 10-year Treasury yield moved higher, indicating that mortgage rates could face renewed upward pressure in the weeks ahead.

"Mortgage rates have fallen 87 basis points from their mid-January peak, offering meaningful relief for sidelined buyers and homeowners considering refinancing," says Jones.

While the housing market remains challenging for many households, stable home prices, growing inventory, and a slower market pace may open the door for buyers looking to make a move before the year’s end.

How mortgage rates are calculated

Mortgage rates are determined by a delicate calculus that factors in the state of the economy and an individual’s financial health. They are most closely linked to the 10-year Treasury bond yield, which reflects broader market trends, like economic growth and inflation expectations. Lenders reference this benchmark before adding their own margin to cover operational costs, risks, and profit.

When the economy flashes warning signs of rising inflation, Treasury yields typically increase, prompting mortgage rates to go up. Conversely, signs of falling inflation or weakness in the labor market usually send Treasury yields lower, causing mortgage rates to fall.

The mortgage rates you’re offered by a lender, however, go beyond these benchmarks and take some of your personal factors into account.

Your lender will closely scrutinize your financial health—including your credit score, loan amount, property type, size of down payment, and loan term—to determine your risk. Those with stronger financial profiles are deemed as lower risk and typically receive lower rates, while borrowers perceived as higher risk get higher rates.

How your credit score affects your mortgage

Your credit score plays a role when you apply for a mortgage. A credit score will determine whether you qualify for a mortgage and the interest rate you'll receive. The higher the credit score, the lower the interest rate you'll qualify for.

The credit score you need will vary depending on the type of loan. A score of 620 is a "fair" rating. However, people applying for a Federal Housing Administration loan might be able to get approved with a credit score of 500, which is considered a low score.

Homebuyers with credit scores of 740 or higher are typically considered to be in very good standing and can usually qualify for better rates.

Different types of mortgage loan programs have their own minimum credit score requirements. Some lenders have stricter criteria when evaluating whether to approve a loan. They want to make sure you're able to pay back the loan.