U.S. mortgage rates hovered near three-year lows, inching up to 6.34% on 30-year fixed loans, according to Freddie Mac data. Analysts noted that mortgage movements mirror Treasury yields more closely than Fed policy, despite September’s 25-basis-point rate cut. With another cut likely, home loan costs remain influenced by inflation expectations and labor market signals. Economists advise prospective buyers to track evolving economic data as rates could fluctuate with upcoming Fed guidance and broader yield curve shifts.

The Federal Open Market Committee (FOMC) is expected to cut the federal funds rate by 25 basis points at its October 28–29 meeting, lowering the target to 3.75%-4.00%. The move would extend the September 2025 rate cut, signaling continued monetary easing as labor markets soften and inflation moderates. Futures data suggest more cuts in December and early 2026, though some officials caution against deeper easing amid lingering price stability risks.