Welcome to our Market Update, written by our very own Capital Market experts. This blog is designed to give you a glance into the most important market events happening this week.
Rates are provided by HousingWire in conjunction with Polly. Rates are updated in real-time. While other mortgage rates sites show rates being quoted to borrowers with top credit profiles, the HousingWire Mortgage Rates Center shows actual locked rates with borrowers of all credit profiles. Rates are inclusive of locks that occur below par, at par and therefore consider discounts, points, and rebates. Rates are based on a scenario with a 780 Credit Score, <60% LTV, Purchase transaction. As of 10/02/2025 – @12:00 PM EST.
Market Commentary:
The Federal Reserve cut its benchmark interest rate by 25 basis points, as expected. It is now between 3.75% and 4%, the lowest since November 2022. In response, US equity prices were up sharply while bond yields grew slightly.
Going forward, the Fed has signaled the likelihood of further rate cuts, but the speed at which it happens remains somewhat uncertain. That is both because of uncertainty about economic data and who President Trump will appoint to replace Chair Powell. Moreover, the government shutdown means that, at least briefly, the Fed will be flying blind, unable to obtain data it routinely uses in its deliberations. The next policy committee meeting will be in December.
Fed Watch: Target rate (in bps) possibilities, according to the CME Group (as of 11/06/2025 – 12:00 PM EST):
Home Prices Increased in 77% of Metro Areas in Third Quarter of 2025:
Flood-Prone America Is Seeing More People Move Out Than Infor the First Time Since 2019
Per NAR:
News You Can Use:
· Fed's Waller calls for December rate cut, as hawks press for policy pause | Reuters
· Median Monthly Housing Payment Posts Biggest Decline in Nearly a Year
· First-Time Home Buyer Share Falls to Historic Low of 21%, Median Age Rises to 40
· Home Prices Increased in 77% of Metro Areas in Third Quarter of 2025
*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate (APR) are based on current market conditions as of 11/06/2025, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 11/06/2025 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac’s economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac’s business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
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