Mortgage rates continue to shift as markets digest the Federal Reserve’s latest move, leaving both buyers and sellers wondering what’s next.

According to Freddie Mac, the average 30-year fixed mortgage rate dropped to 6.17% for the week ending October 31, 2025, the lowest level in a year. The 15-year fixed also slipped to 5.41%, down from 5.99% one year ago.

But that good news came with a twist: daily rates began climbing immediately after Wednesday’s Federal Reserve meeting, in which Chair Jerome Powell suggested that another rate cut in December was not guaranteed.

What This Means for Palos Verdes Homeowners

Lower average mortgage rates are welcome relief for buyers who were sidelined earlier this year. In Palos Verdes, Rolling Hills, and the South Bay, that has translated into increased showing activity and renewed buyer urgency.

Sellers who list this fall are benefiting from a unique window, rates are still far below 2024 levels, but inventory remains limited. Homes that are move-in ready or well-priced continue to attract multiple offers.

Why the Fed’s Messaging Matters

The Fed doesn’t directly set mortgage rates. It influences short-term borrowing costs, and those adjustments ripple through the bond market where mortgage rates are ultimately priced.

When Powell indicated that future cuts are not guaranteed, investors quickly repriced expectations, and daily mortgage rates ticked higher. This illustrates how sensitive the housing market remains to even small shifts in monetary policy.

Big Picture: Still Better Than a Year Ago

Despite the day-to-day volatility, the mortgage market is in a far stronger position than it was last fall:

• Rates have declined from 6.72% to 6.17%.

• Refinancing activity has picked up as homeowners seek to lower monthly payments.

• Purchase applications are rising across Southern California.

As Bob Broeksmit, President of the Mortgage Bankers Association, noted this week: “Households who bought homes in recent years when rates were higher are now eager to lower their monthly mortgage payment.”

The Palos Verdes Outlook

For sellers: This is an opportune time to list before the market potentially adjusts to the Fed’s December decision. Demand for well-priced, view, and coastal homes remains high, and the current pool of buyers is motivated by the possibility that rates could climb again.

For buyers: A dip to the low-6 percent range translates into meaningful savings and increased purchasing power. Securing a loan while averages remain favorable could make a substantial difference in long-term affordability.

My Take

After decades representing Palos Verdes homeowners, I’ve learned that timing the market is rarely as effective as reading the market. The best results come from accurate pricing, strategic preparation, and smart negotiation, regardless of week-to-week fluctuations.

If you’re considering buying or selling, now is the moment to review your options and align your strategy with today’s rapidly changing rate environment.

📅 Schedule a private consultation to discuss how current mortgage trends affect your home’s market value or your next purchase opportunity.

—
Suzanne Dyer
Strand Hill | Forbes Global Properties
Top Realtor in Rolling Hills 2024 • $1 Billion+ in Career Sales
Serving Palos Verdes, Rolling Hills, Rancho Palos Verdes & the South Bay