The Lowest Mortgage Rates in Over a Year?

A second Fed rate cut, mortgage rates reached a one-year low, and spooky happenings at Mackle Park

Author

Edward Karas
October 31, 2025

IN THE NEWS

🎃 Halloween Spooktacular at Mackle Park: “Marco Island is gearing up for its annual Halloween Spooktacular at Mackle Park! This free, family-friendly event will feature:

  • Fun games and activities for all ages

  • Costume contests with prizes

  • Trick-or-treating and festive entertainment

Join local residents for a day of spooky fun, laughter, and community spirit. Bring your family, dress in your favorite costume, and celebrate Halloween the Marco Island way!”

📍 Location: Mackle Park, Marco Island, FL 🕒 Date & Time: October 31, 2025 | All-day event

Hideaway Beach Club reopens on Marco Island three years after Hurricane Ian: "Three years after Hurricane Ian flooded the property and an electrical fire burned it down, the Hideaway Beach Club on Marco Island unveiled its brand new sports and wellness center. … The new facility features three new bocce courts, eight resurfaced tennis courts and six pickleball courts."

📊 The Marco Island Market Summary

Months of Inventory: 7.18 (↓ 6.51%)
Sold to List Price Ratio: 92.2% (↑ 0.1%)
Days on Market: 93 (↓ 9.71%)
Median Sold Price: $1,100,000 (↑ 29.41%)

Another Fed Cut & Mortgage Rates 📉

Sound familiar? No, it’s not déjà vu! Last month, I wrote about the Fed’s September rate cut—and here we are again. Let’s take a look at what’s really happening and how it could affect mortgage rates going forward…

Wednesday's decision takes the Fed's overnight rate down to a range of 3.75% to 4%, marking the second consecutive cut since September and taking the federal funds rate to its lowest since late 2022.

Wednesday's quarter-point cut was widely anticipated and already largely priced into mortgage rates, which have fallen in recent months and reached a one-year low of 6.19% last week, according to Freddie Mac.

"Mortgage rates moved down notably in advance of the Fed’s meeting, hitting their lowest level in more than a year, but further declines will depend on new developments," says Realtor.com® Chief Economist Danielle Hale. "Today’s dissenting votes show that the Fed is unlikely to see a majority support faster rate cuts absent a more substantial slowdown in economic activity."

In other words, the Fed's latest rate cut doesn't mean mortgage rates will automatically fall further.

Powell's comments at a press conference after the meeting may actually send mortgage rates higher in the short term, as he threw cold water on expectations for further cuts this year.

I'll keep an eye on mortgage rate developments for you as the effects from the latest cut unfold. In summary, it's important to remember that where mortgage rates stand today might already reflect Wednesday’s cut—it was expected and could be priced in accordingly. We may also even see mortgage rates bump up in the near term following the uncertainty of additional cuts later this year.

Realtor.com® senior economic research analyst Hannah Jones says in response to Powell’s comment, the 10-year Treasury yield moved higher, indicating that mortgage rates could face renewed upward pressure in the weeks ahead.

"Mortgage rates have fallen 87 basis points from their mid-January peak, offering meaningful relief for sidelined buyers and homeowners considering refinancing," says Jones.

While the housing market remains challenging for many households, stable home prices, growing inventory, and a slower market pace may open the door for buyers looking to make a move before the year’s end.

Whether you're wondering if now's the right time to buy or sell, curious about your home's current value in this market, or just want to talk through what’s best for your situation, I'm here to help.

I love talking real estate (it's kind of my thing!), and I'm always happy to share what I'm seeing here on Marco Island. Reply to this email or call me at (239) 388-7715 and let's connect.

Edward Karas
REALTOR® | PSA | RSPS | C2EX
Premiere Plus Realty
(239) 388-7715 | [email protected]

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