For homebuyers and current owners looking to refinance, October 29 can’t come fast enough. That’s when the Federal Reserve is set to conclude its next two-day meeting and issue another widely anticipated cut to the federal funds rate.
Currently at a range between 4.00% to 4.25%, a cut at the end of the month would bring that range down another 25 basis points. And it’s looking more and more like a certainty, with the CME Group’s FedWatch tool listing a cut of that size at a 99% likelihood as of October 17.
While the Fed’s actions don’t directly dictate the mortgage purchase and refinance rates lenders offer, they do go a long way toward influencing them. So, another cut can offer further relief for buyers and homeowners saddled with higher interest rates on their current mortgage loans.
### Could Mortgage Interest Rates Fall Before the Fed’s October Meeting?
While predicting the future movement of any borrowing product’s rates with precision is inherently difficult, there’s a case to be made for lower mortgage rates before October 29. Below, we explain why.
It’s important to remember that the Fed is just one of several factors impacting mortgage rates. Another major factor is the 10-year Treasury yield. Multiple forces can drive rates higher or lower now, potentially before October 29.
That being said, there’s a strong possibility that rates could fall before then — perhaps as soon as the next few days.
A look back at recent mortgage rate history supports this theory. In September 2024, for example, mortgage interest rates plunged to their lowest level in two years right before the Fed issued a larger-than-anticipated 50 basis-point rate cut — **not after it**.
This dynamic repeated again this fall as mortgage rates temporarily declined to a three-year low in September, once more right before the Fed’s first rate cut of 2025.
In other words, mortgage rate drops don’t line up as neatly alongside Fed rate cuts as it may seem on the surface. So mortgage rates can — and potentially will — fall again before the Fed’s press conference announcing its rate policy at the end of the month.
It’s also critical to remember that lenders don’t need to wait to begin reducing the offers they provide to borrowers. Lenders often “price in” these cuts before they’re officially announced. That’s why borrowers frequently see little difference between mortgage rates listed online the morning of a Fed announcement day and in the days that follow. The inevitability has already been accounted for, and this is unlikely to change this month.
There’s a good chance — if not a guarantee — that rates will fall before October 29, when the Fed meets again. But there’s no guarantee they’ll stay that low permanently, either, as rates increased in the weeks after the Fed’s September 2024 and September 2025 cuts.
Be prepared to take advantage of this timely opportunity when it presents itself again.
### How to Prepare for the Next Mortgage Rate Drop
Want to take advantage of a timely and affordable mortgage rate? Fortunately, the advice here remains timeless and widely applicable.
**Boost your credit score as high as possible.** The lowest rates always go to those with the best credit profiles. Start by checking your credit report for errors or inaccuracies, clear those up, and begin paying down your debt immediately to improve your score.
**Shop around for lenders.** This can lead to significant savings, even if you’re not quite ready to formally apply for a loan. By familiarizing yourself with what lenders are offering, you can narrow down your search and be one step closer to applying with the most affordable lender once you find a home you’re ready to make an offer on.
**Monitor the mortgage rate climate daily.** Mortgage rates don’t always move in a neat and predictable fashion. Opportunities may arise and disappear within the same business day. Be proactive—stay on top of the news cycle and Fed actions (or lack thereof), and have your documentation ready so you can lock in a new, low mortgage rate as soon as it surfaces.
### The Bottom Line
Mortgage interest rates are moving in an encouraging direction again, and they may continue to move that way even before the Fed’s next meeting. While there’s no certainty in this climate, recent history suggests mortgage rates could fall before October 29.
This opens up a new (but limited) window of opportunity for borrowers to take advantage of lower rates. If you’re one of them, start preparing your application now—you may be submitting it sooner than you anticipated.
https://www.cbsnews.com/news/could-mortgage-interest-rates-fall-before-fed-october-2025-meeting/
