Idaho Mortgage Rate Update October 2025: What Changed This Week (and Why)

🏠 Mortgage Rates Barely Budge as Markets Wait for the Fed – What It Means for Idaho Buyers

This Week's Mortgage Rate Recap

If you were hoping for big fireworks in mortgage rates this week, Idaho… it didn't happen.
Rates stayed mostly flat heading into next week's Federal Reserve meeting - with national averages showing just tiny bumps:

30-year fixed: 6.19% (+0.01%)
15-year fixed: 5.76% (+0.02%)
FHA: 5.95% (+0.04%)
VA: 5.97% (+0.04%)

Mortgage-backed securities (MBS) even inched up a little, which typically supports slightly better pricing.
But here's the twist - all of this is happening while the Fed is 100% expected to cut rates next week.

So why aren't mortgage rates dropping already?

Why Mortgage Rates Are Holding Their Ground

Mortgage rates don't follow the Fed Funds Rate directly.
They move based on market expectations - what investors think the Fed will do - not what the Fed actually does on meeting day.

And as this week's data showed, the market has already priced in that cut.
By the time Jerome Powell hits the mic next Wednesday, the mortgage world will have already moved on to the next big question:
➡️ What will the Fed say about future rate cuts?

Unless the Fed surprises everyone with a change in tone (or a wild comment about inflation), we'll likely see mortgage rates continue to hover in this narrow range.

Economic Clues from This Week's Data

Existing home sales: up 11.85% - showing some life in the housing market.
Pending home sales: up 4.18% - a hint of confidence among buyers.
Core CPI: 3.0% year-over-year - inflation is cooling, but not enough for investors to relax.
Consumer sentiment: dipped slightly to 53.6 - shoppers are cautious, and so are lenders.

All of that adds up to this: markets are cautiously optimistic, but still waiting for real confirmation that inflation is tamed.

What This Means for Idaho Homebuyers and Homeowners

Idaho mortgage rates have settled into a "calm before the Fed" zone.
If you're house-hunting in Boise, Meridian, or Nampa, you're seeing stable rate sheets and a few lender incentives making a comeback (like 2-1 buydowns and temporary pricing specials).

For homeowners, this is a great time to review your refinance options before any volatility returns after next week's Fed meeting.

At 1st Choice Mortgage, we're watching daily market movements so you don't have to - and helping Idaho borrowers find the sweet spot between timing and savings.

FAQ: Idaho Mortgage Rates - What Happened This Week and Why

Why didn't mortgage rates drop even though the Fed is cutting rates?

Mortgage rates move on market expectations, not the Fed Funds Rate itself. By meeting day, investors have usually priced in the cut already, so rates may barely move - or even rise if the Fed's tone sounds less dovish than expected.

Could rates actually rise after the Fed cuts?

Yes. If the Fed signals fewer cuts ahead or inflation risks stick around, bond yields can climb and mortgage rates can tick up - even right after a cut.

How does inflation affect Idaho mortgage rates?

Higher inflation erodes bond returns, so investors demand higher yields, which pushes mortgage rates up. Cooler inflation usually helps rates drift lower over time.

Are Idaho home prices still moving despite stable rates?

Generally, yes. With limited inventory across Ada and Canyon counties, modest price appreciation can continue even when rates hold steady.

Should I wait to buy until rates drop more?

Not always. When rates fall, demand often pushes prices higher. Many buyers purchase now and refinance later if/when rates improve.