“Over the last few weeks, mortgage rates have settled in at their lowest level in about a year,” Sam Khater, Freddie’s chief economist, said.
“There is growing evidence that homebuyers are digesting these lower rates and gradually are willing to move forward with buying a home, which is boosting purchase activity.”
The 15-year fixed-rate mortgage, a popular option for refinancing, also eased to 5.53% from 5.55% last week. A year ago, the 30-year and 15-year rates averaged 6.32% and 5.41%, respectively.
As mortgage rates edge higher post-Fed cut, BTIG’s Eric Hagen says the “magic number” for renewed activity could be around 5%. He points to hybrid ARMs as a rising affordability tool amid rate uncertainty.https://t.co/pUMS1SEWhm
— Mortgage Professional America Magazine (@MPAMagazineUS) October 9, 2025
Market factors and Fed policy shape outlook
Mortgage rates are shaped by a web of influences, from the Federal Reserve’s interest rate decisions to investor sentiment in the bond market. The 10-year Treasury yield, a key benchmark for mortgage pricing, hovered at 4.13% midday Thursday, up slightly from last week.
“There’s this market perception that the Fed controls mortgage rates. The Fed does not control mortgage rates. The Fed merely sets short term rates. The market controls longer rates,” Glen Weinberg, managing partner at Fairview Commercial Lending, told Mortgage Professional America.