2025.10.2911:11:14UTC+00US Mortgage Rates Lowest in More Than a Year: MBA

The average contract interest rate for 30-year fixed-rate mortgages, on loans within the conforming limit of $806,500 or less, declined to 6.3% for the week ending October 24th, 2025, down from 6.37% the prior week, as reported by the Mortgage Bankers Association. This marks the fourth consecutive week of decreasing mortgage rates, bringing them to their lowest point since September 2024. This trend is attributed to falling Treasury yields following a consumer price index (CPI) report that was weaker than anticipated, bolstering expectations of further rate reductions by the Federal Reserve within the year. "The recent drop in rates has led to heightened refinance activity for the second week in a row, primarily fueled by conventional refinance applications," stated Joel Kan, the MBA's vice president. Overall, mortgage applications saw a 7.1% increase, with applications for purchasing homes rising by 4.5% and those for refinancing home loans surging by 9.3%.