How an October Fed rate cut could impact mortgages, according to experts

Another Federal Reserve rate cut could have a big impact on the mortgage landscape this October. Andrii Yalanskyi/Getty Images

Borrowers are finally beginning to see more affordable mortgage rates , which have been falling steadily recently. The average 30-year fixed-rate mortgage rate, for example, dropped to a three-year low of 6.13% in late September, which was due, in large part, to the Federal Reserve lowering interest rates for the first time in 2025. Falling rates are a welcome change for homebuyers and those looking to refinance but have been on the sidelines waiting for more affordable terms.

And, there may be good news on the horizon for borrowers, who could see another Federal Reserve rate cut happen in October when the Fed meets again. While mortgage rates are