Current mortgage and refinance rates today in US: Mortgage rate today drops to 6.15% in U.S.: Is a big relief finally coming for homebuyers as 30-year mortgage hits lowest level in over a year – Experts see rates dipping below 6%

Mortgage rate today in the U.S. dropped again, reaching its lowest level in more than a year. The average 30-year fixed-rate mortgage now sits at 6.155%, according to new data from Optimal Blue. That’s down slightly from the previous day and nearly flat from a week ago, but still a significant sign that borrowing costs are continuing to cool across the housing market.

The decline extends a three-week trend that’s offering long-awaited relief to homebuyers and refinancers after months of elevated rates. Data from Freddie Mac shows the average 30-year mortgage fell to 6.19% from 6.27% last week, the lowest since October 2024. A year ago, that same rate averaged 6.54%. The 15-year fixed mortgage, often used for refinancing, dropped to 5.44% from 5.52% a week ago.

Experts say this pullback comes as investors anticipate further Federal Reserve rate cuts. The Fed has already lowered its benchmark rate once this year and signaled two more reductions in 2025, followed by another in 2026. The 10-year Treasury yield, which mortgage rates tend to track, hovered around 3.99% this week, down from 3.97% last week. Lower yields generally push mortgage rates down too.
Still, economists warn that the drop may not last long. Persistent inflation, a widening federal deficit, and uncertainty tied to President Donald Trump’s new tariffs and trade policies could keep mortgage rates from falling much further. “The upcoming cut is already priced in,” said Jake Krimmel, senior economist at Realtor.com, noting that any renewed inflation pressure could push borrowing costs higher again.

At the same time, mortgage applications slipped 0.3% last week, according to the Mortgage Bankers Association, as buyers continue to navigate high home prices and limited inventory. Refinance loans made up 56% of all applications, rising slightly from the week before, while adjustable-rate mortgages (ARMs) accounted for 10.8% of all new home loans.

By category, 30-year FHA loans now average 6.11%, VA loans stand at 5.72%, and USDA loans are near 5.99%. Jumbo loans hold around 6.53%, while the 15-year conventional rate sits at 5.38%. The data, reviewed by Fortune from Optimal Blue as of October 27, 2025, reflects loans locked in through October 24, 2025. Although today’s mortgage rates feel high compared to the pandemic-era lows of 2.65% in 2021, analysts say they’re closer to historical norms. Through much of the 1980s and 1990s, average U.S. mortgage rates ranged between 7% and 9%, even peaking above 18% in 1981. But for many homeowners who secured historically low loans during 2020 and 2021, current conditions have created what economists call the “golden handcuffs” — keeping them from moving or refinancing at today’s higher costs. Mortgage rates are expected to stabilize as the Fed prepares for its next policy meeting in early November. Markets have already priced in another potential rate cut, though analysts say it may take a larger economic slowdown to bring mortgage rates below 6% again. For now, the mortgage rate today remains at its lowest point in over a year — a small but meaningful break for America’s housing market heading into the final months of 2025.

Mortgage rate today: U.S. 30-year average falls to 6.15%, lowest in over a year

The average U.S. mortgage rate has dropped again, giving homebuyers and refinancers a rare break after years of elevated borrowing costs.

According to data from Optimal Bluethe average 30-year fixed-rate conforming mortgage stands at 6.155% — down by 1 basis point from the previous day and almost unchanged from a week earlier. It marks the lowest long-term rate since October 2024signaling a sustained cooling trend in borrowing costs.

Freddie Mac reported that the average 30-year fixed mortgage fell to 6.19% this week from 6.27% last week. A year ago, it was 6.54%. This marks the third straight weekly decline and the lowest rate since October 3, 2024when it touched 6.12%.

The 15-year fixed-rate mortgagepopular among refinancers, dropped to 5.44% from 5.52% a week earlier. A year ago, it averaged 5.71%Freddie Mac said.

Rates have been falling steadily since July, ahead of the Federal Reserve’s September rate cut—its first in a year. At that meeting, the Fed signaled two more cuts in 2025 and one in 2026.

The 10-year Treasury yieldwhich guides mortgage pricing, has also eased. It stood at 3.99% on Thursday, down slightly from 3.97% the previous week.

How Fed policy and economic shifts are shaping rates

Mortgage rates follow Treasury yields closely and are influenced by the Fed’s policy stance, inflation, and economic data.

President Donald Trump’s trade and tariff policiesalong with a widening federal deficit, have kept inflation expectations elevated, limiting how far mortgage rates can fall.

Jake Krimmel, senior economist at Realtor.comsaid, “The upcoming cut is already priced in, while uncertainty over a potential December move and stubborn inflation continue to limit how far mortgage rates could drop.”

While additional Fed rate cuts are expected, experts caution that mortgage rates may not keep falling. After the Fed’s first rate cut in over four years last fall, mortgage rates briefly rose above 7% by January 2025.

Current average mortgage rates (as of Oct. 28, 2025)

Data reflects loans locked as of Oct. 24, 2025 (Source: Optimal Blue, reviewed Oct. 27, 2025).

Refinancing and homebuying trends in focus

Mortgage applications slipped 0.3% last week, according to the Mortgage Bankers Association (MBA). However, refinance loans rose slightly, accounting for 56% of all applications — their highest share this year.

Applications for adjustable-rate mortgages (ARMs)which carry lower initial rates, made up 10.8% of total applications.

Experts say rates will need to fall below 6% to trigger a major refinancing wave. Around 80% of U.S. homeowners have mortgage rates below 6%, and 53% have rates under 4%, Realtor.com data shows.

Why today’s rates still feel high

Today’s 6–7% range feels steep compared to the record-low 2.65% average seen in January 2021when the government pumped stimulus into the economy during the pandemic.

However, historically, today’s rates are closer to long-term norms. From the 1970s through the 1990s, mortgage rates averaged between 7% and 9%peaking above 18% in late 1981.

The gap between pandemic-era lows and current rates has left millions of homeowners “locked in” with ultra-low mortgages — a phenomenon now called “golden handcuffs.”

What impacts your mortgage rate

Several factors drive mortgage rates:

• Federal Reserve policy and Treasury yields.
• Inflation expectations and the national debt.
• Demand for home loans.
• Lender competition and risk appetite.

Even though the Fed doesn’t set mortgage rates directly, its moves on the federal funds rate and balance sheet — especially its decision to reduce holdings of mortgage-backed securities — heavily influence mortgage costs.

With the Fed expected to cut again in Novemberand Treasury yields trending lower, housing market watchers say the next few weeks could be critical for both buyers and refinancers heading into winter 2025.