Mortgage rates dropped to 6.2%-6.5% in October 2025, boosting home sales and buyer activity.

Lower mortgage rates in October 2025, with 30-year fixed rates falling to around 6.2%–6.5%, have boosted U.S. housing market activity, increasing demand from first-time buyers and refinancers. This shift has led to modest gains in home sales, rising mortgage applications, and slight improvements in inventory, helping stabilize prices in many regions. While supply constraints and high home prices persist, the rate decline—driven by Federal Reserve policy signals—has eased affordability pressures and supported a recovery in homebuilder confidence and construction activity.