Mortgage Rates Rise Above 6% After Fed Meeting Amid Housing Market Uncertainty

Mortgage interest rates in the U.S. have recently fallen to their lowest levels in three years, with the average 30-year fixed mortgage rate dropping to around 6.30% in early October, significantly lower than the above-7% rates seen earlier in 2025. However, rates have ticked up slightly since mid-September, rising to approximately 6.39% to 6.47%, following a decline that preceded the Federal Reserve's rate cut in mid-September. Experts note that while mortgage rates are still high compared to early pandemic levels, they remain lower than most of 2025, presenting potentially more affordable opportunities for homebuyers and refinancers. The outlook for rates depends heavily on upcoming economic data, such as the September jobs report, which could influence the Fed's future rate decisions and thus mortgage rates. Homebuyers are advised to get preapproved and compare lenders while strengthening their financial profiles, as the mid-6% rate range might be the new normal through the end of the year. Tools like affordability calculators can help buyers estimate payments, and while lower rates may be possible, the current environment suggests acting sooner rather than later may be beneficial.