Mortgage Rates Remain Tied to Bond Market, Not Federal Reserve Decisions
- U.S. mortgage rates fell to 6.4% in late October 2025 after Fed's 50-basis-point rate cuts in September and October. - Experts predict stable rates tied to bond markets, not Fed actions, as Treasury yields near multi-year lows. - Market priced in two more Fed cuts by year-end, but Powell's cautious stance caused temporary rate spikes post-October meeting. - Historical data shows Fed cuts often fail to lower mortgage rates due to bond yields and inflation expectations dominance. - Analysts warn of potenti
At the start of November 2025, mortgage rates in the United States saw a slight decrease, with the average 30-year fixed rate dropping to around 6.4% as of October 31, according to
Analysts believe that unless the Fed changes its policy, mortgage rates are expected to remain relatively steady, moving gradually in response to bond market trends rather than experiencing sharp changes. "If the Fed skips a November meeting, I anticipate mortgage rates will follow the bond market—small daily fluctuations rather than significant shifts," said Steven Glick, HomeAbroad’s director of mortgage sales. He pointed out that Treasury yields, which are currently near their lowest levels in years, should help keep mortgage rates in the mid-6% range.
Jeremy Schachter, a mortgage branch manager, noted that the market has already accounted for two anticipated Fed rate cuts before the end of the year. "Current rates already reflect those expected decreases," he said, echoing broader market sentiment.
Still, recent statements from the Fed have added a layer of uncertainty. Chair Jerome Powell indicated that a rate cut in December "is not a certainty," which has dampened market optimism, according to
Historically, the relationship between Fed rate changes and mortgage rates has been inconsistent. For instance, when the Fed cut rates by 100 basis points at the end of 2024, mortgage rates actually increased by nearly a full percentage point, as highlighted in a
Looking forward, opinions in the market are mixed. BOK Financial forecasts that rates could fall to between 5.9% and 6.0% if inflation continues to ease, but a lack of action from the Fed or a reversal in inflation trends could send rates higher. For now, borrowers are encouraged to keep a close eye on the Fed’s December meeting. "Being ready is crucial," DerGurahian advised. "If rates drop further, securing a refinancing deal could lead to significant savings."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Echoes from 2000: Burry Bets $900M Against $5 Trillion AI Valuations
- Michael Burry's $900M short bet targets Palantir and NVIDIA, challenging their AI sector valuations amid rising skepticism. - The NVIDIA-Palantir partnership integrates GPU tech with AI platforms to boost enterprise decision-making, driving recent stock optimism. - Palantir's $471B market cap and NVIDIA's $5T valuation face scrutiny over execution risks, regulatory concerns, and stretched multiples. - Institutional investors show mixed signals, with some bullish on AI growth while Burry warns of an "AI b
Bitcoin Updates: Renewed Institutional Trust and Accommodative Fed Stance Fuel Bitcoin’s Most Promising Bull Run Since 2021
- Institutional flows and dovish Fed policy drive Bitcoin’s strongest bull case since 2021, with $130K–$135K 2026 targets gaining traction. - U.S. Spot Bitcoin ETFs saw $202.4M net inflows on October 29, led by Grayscale, Fidelity, and ARK Invest, signaling institutional confidence. - Technical analysis highlights $109K as a critical support level, with $125K retests and accumulation patterns suggesting sustained bullish momentum. - Maturing ETF infrastructure and Fed easing expectations amplify Bitcoin’s
Ethereum News Update: MoonBull’s Ethereum-Secured Protections and Referral Initiative Spark 9,256% ROI Buzz
- MoonBull ($MOBU) targets 9,256% ROI via Ethereum-based presale with $0.00006584 entry price, aiming for 1000x growth by 2025. - Structured 22-stage price escalation (27.40% per stage) and 15% referral rewards drive liquidity and community-driven adoption. - Competes with Solana (SOL) and Ethereum (ETH) by combining DeFi innovation with meme coin virality through Ethereum's security framework. - High volatility risks persist despite safeguards like 60-minute claim delays and 48-hour liquidity locks, urgin
Zcash's Rise in Privacy and the Growth of Decentralized Exchanges Indicate a More Mature Crypto Market Focused on User Empowerment
- Zcash (ZEC) surged 198.92% to $420 by mid-November 2025, driven by increased demand for privacy-focused zero-knowledge proof transactions and a 4.1M token shielded supply via Orchard protocol. - Electric Coin Co. (ECC) unveiled Q4 2025 upgrades including ephemeral addresses, improved hardware wallet support, and P2SH multisig wallets to enhance Zcash's utility and privacy. - Decentralized exchanges (DEXs) processed $1.36T in October 2025, with Hyperliquid leading at $299B, reflecting growing trader prefe
Trending news
MoreCrypto prices
More
