Mortgage rate pros and cons to know this October

Mortgage interest rates plunged to their lowest level in three years in September, and while they’ve ticked up slightly since the middle of the month, they now enter October at a significantly lower position than they were at earlier in 2025. According to FreddieMac, the average rate on a 30-year mortgage term is now just 6.30%, materially lower than the plus-7% range mortgage rates hovered near at the start of the year. So there’s understandable motivation for homebuyers to become reengaged, especially if they’ve been sitting on the sidelines in recent years in anticipation of a cooler mortgage rate climate.

However, that doesn’t mean they should rush into the process either.

Rates are still significantly higher than they were at the start of the decade, when they were cut repeatedly during the height of the pandemic. And there’s no way to tell exactly where they’re headed long-term, either. Understanding this dynamic, homebuyers should familiarize themselves with some timely mortgage rate pros and cons this October, specifically. By understanding these four items, they can better determine their next steps (or lack thereof). Below, we’ll detail four that are worth knowing right now.

Start by seeing how low your current mortgage rate offers are here.

Mortgage rate pros and cons to know this October

While each homebuyer’s circumstances and goals are different, many can benefit from understanding these timely mortgage rate pros and cons this October:

Pro: Mortgage rates are lower than they’ve been in years

Mortgage rates briefly fell to an average of 6.13% on a 30-year term earlier this month, and while they did tick up in the week after, they’re still lower overall than they’ve been in years, offering homebuyers new, more affordable opportunities. Take the time, then, to pull your credit report and review your credit score to make sure you’re in as favorable a position as possible to take advantage. Today’s rates could easily change, perhaps even sooner than expected, so it makes sense to exploit the cooler rate climate while you still can.

Compare rates and lenders online to learn more.

Con: Volatility could cause them to spike again

Mortgage rates are driven by more than just the Federal Reserve. Factors such as the 10-year Treasury yield, inflation, unemployment and more can all impact the rates lenders offer borrowers. And volatility in one or more of these spaces could cause rates to spike again, effectively closing this brief window of opportunity. It’s worth remembering that mortgage rates plunged to a two-year low in September 2024, also following a Fed rate cut then, before rising again. So be aware of the potential risks of waiting, as today’s low rates aren’t guaranteed, even for creditworthy borrowers.

Pro: Another rate cut looks likely for the end of October

Around 90%. That’s the chance the Fed cuts rates again at the end of its next meeting on October 29, according to the CME Group’s FedWatch tool. And while the Fed is just one factor influencing mortgage rates, it’s a significant one. Many lenders may not even wait for that cut to become official before adjusting their rate offers downward. Keep an eye on the rate climate in the weeks leading up to the central bank’s next meeting, then, for an opportunity to act.

Con: Homebuying in the fall can be difficult

The most popular time traditionally to buy a home is in the spring. This allows for better house hunting weather and, when timed right, an opportunity to close and move into the new house during the summer months when school is out and vacation is robust. But the fall isn’t that. Home inventory may weaken as many existing homeowners elect to keep their plans as they are through the upcoming holiday season. Opportunities to view homes, attend open houses and complete the banking requirements needed for home purchasing can also be limited during this season. That all said, today’s low rates may not last much longer, so this con will need to be weighed against the cost-effectiveness of a home purchase now, anyway.

The bottom line

New, low mortgage rates offer new chances for homebuyers. However, they will need to be viewed through the prism of homebuying in October 2025, which is markedly different compared to October 2020 and a bit different than October 2024, too. By evaluating these pros and cons, and by speaking with a mortgage broker or real estate agent, prospective buyers can better determine if waiting is the smart move or if they can finally feel confident reentering the purchasing climate.