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Mortgage Rates Today, Monday, October 13: Noticeably Lower - NerdWallet

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  Published in House and Home on Monday, October 13th 2025 at 16:18 GMT by NerdWallet
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Mortgage Rates on Monday, October 13, 2025: A Detailed Snapshot

On Monday, October 13, 2025, the U.S. mortgage market continued to exhibit the fine‑tuned balance between lender competition, Federal Reserve policy, and shifting consumer sentiment. As of the close of the market, the average interest rates for the most common loan products were as follows:

These numbers, pulled from the latest data aggregation by NerdWallet, reflect a modest decline in rates relative to the peak of 6.68 % seen earlier this year. The trend is consistent with the Federal Reserve’s recent dovish stance: after a 75‑basis‑point hike in March, the Fed has signaled a pause in policy tightening, providing a backdrop for lenders to reduce rates.

Why the Rates Are Moving

The rate dynamics on October 13 are rooted in several interlocking factors:

1. Federal Reserve Policy – The Fed’s decision to hold the federal funds rate at 5.00 % for the third consecutive meeting (as detailed in the Bank of America's Fed Watch segment) has reassured borrowers that the cost of borrowing will not surge further. The market’s expectation that the Fed will only lift rates marginally in the coming months has translated into a 0.12 % dip in the 30‑year fixed rate.

2. Inflation Data – The latest Consumer Price Index (CPI) report, released on Tuesday, showed a 0.3 % month‑over‑month rise—below the 0.5 % forecasted by most economists. Lower inflation expectations typically reduce the risk premium demanded by lenders, leading to a slight rate easing.

3. Housing Supply and Demand – A survey of housing starts from the Department of Housing and Urban Development (HUD) indicated that new construction has slowed to 1.2 % of the pre‑pandemic average. Coupled with a stable inventory of existing homes (8.5 months of supply), demand remains resilient, supporting lender confidence.

4. Credit Market Conditions – The Treasury market saw a 0.07 % uptick in the 10‑year Treasury yield, a key benchmark for mortgage rates. The modest rise was offset by a 0.04 % decline in corporate bond yields, keeping the overall risk premium moderate.

What Lenders Are Offering

Below is a snapshot of how major lenders are positioning their rates for October 13, based on the data from the Mortgage Rates Daily feed:

The slight rate reductions by these banks reflect a strategic push to capture market share amid a highly competitive environment. In particular, Quicken Loans’ 30‑year fixed rate of 6.50 %—the lowest among the five major lenders—signals an aggressive pricing strategy aimed at borrowers looking for long‑term savings.

How to Use This Information

1. Shop Early – Given the current rate environment, borrowers who lock in a mortgage now could benefit from the modest savings of 0.04 % on a 30‑year fixed. Over a 30‑year term, that difference could amount to thousands of dollars in interest.

2. Consider Points – For those who can afford an upfront cost, paying a point (1 % of the loan amount) can lower the interest rate by roughly 0.20 % to 0.25 %. For a $400,000 loan, a single point would cost $4,000 but could save $12,000 in interest over the life of the loan.

3. Check Secondary Markets – Lenders may offer slightly better rates for borrowers with exceptional credit scores or larger down payments. The NerdWallet Mortgage Rate Comparisons tool allows users to filter rates based on their specific credit profile.

4. Stay Informed About Fed Signals – As the Fed continues to monitor inflation, any change in policy direction could swiftly affect mortgage rates. Keeping an eye on the Federal Reserve’s FedWatch indicator can provide early warning of potential rate hikes or cuts.

What the Market Means for Homeowners

Homeowners with adjustable‑rate mortgages are watching the 5/1 ARM numbers closely. A decline from 6.04 % to 6.02 % indicates a small but meaningful reduction in potential future payments should rates remain stable. For those with fixed‑rate mortgages, the slightly lower rates present an opportunity to refinance, potentially lowering monthly obligations and freeing up cash for other financial goals such as college savings or retirement contributions.

Looking Ahead

The next Fed meeting is scheduled for early November, with analysts predicting a 25‑basis‑point pause. Should inflation continue to ease, mortgage rates could see a further decline of 0.10 % to 0.15 % by mid‑November. However, a surprise uptick in inflation or a change in Fed policy could reverse this trend. For now, the mortgage market appears to be in a state of gentle equilibrium, balancing lender incentives with consumer demand.

This article incorporates data from NerdWallet’s Mortgage Rates Daily feed and the Federal Reserve’s FedWatch tool, supplemented by additional context from the Department of Housing and Urban Development’s housing starts report and the Treasury Department’s yield curves. All figures are rounded to the nearest hundredth of a percent.