Mortgage rates rose slightly this week after a month-long decline, as markets reacted to Federal Reserve Chair Jerome Powell’s remarks suggesting a more guarded approach to future rate cuts, according to Realtor.com.
According to Freddie Mac, the average rate on 30-year fixed home loans climbed to 6.22% for the week ending November 6, up from 6.17% the previous week. A year ago, the average rate was 6.79%. “On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving,” said Sam Khater, Freddie Mac’s chief economist.
The modest uptick came shortly after the Federal Open Market Committee (FOMC) voted to lower the benchmark federal funds rate by a quarter of a percentage point to a range of 3.75%–4%. Although the move was expected, Powell’s subsequent comments tempered expectations for another cut in December. “A further reduction in the policy rate at the December meeting is not a foregone conclusion, far from it,” Powell told reporters. “Policy is not on a preset course.”
The Fed’s decisions are being made without access to key economic data, including unemployment figures, due to the ongoing government shutdown now entering its second month.
Market Reaction and Housing Activity
Following Powell’s remarks, the 10-year Treasury yield rose, and mortgage rates followed suit. Yields and mortgage rates often move in tandem, as Treasury bonds reflect investor sentiment on economic growth and inflation.
Despite the uptick, rates remain significantly lower than the highs seen earlier in 2025. “Nevertheless, mortgage rates remain well below recent highs, offering slightly improved affordability for buyers hoping to secure a home before year-end,” said Hannah Jones, senior economic research analyst at Realtor.com.
In October, home shoppers in the South and West benefited from easing prices, lower mortgage rates, and greater inventory. Buyers in the Midwest and Northeast saw more modest signs of improvement. Nationally, homes are still taking about two months to sell—an indication that many buyers remain cautious amid economic uncertainty. “Despite the positive undercurrent of lower rates, uncertainty persists,” Jones noted. “The recent government shutdown has weighed on buyer sentiment, particularly in federal-heavy markets and metros tied closely to public-sector employment.”
As the housing market moves further into fall, seasonal slowdowns are expected as both buyers and sellers shift focus toward the holidays. However, Jones added that motivated shoppers may find a brief opportunity window as prices ease and inventory grows.
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