November 3, 2025 Market Update Courtesy of Envoy Mortgage

Market Spotlight

Week of November 3rd, 2025 | #185

KEY TAKEAWAY: The Fed cut rates again, but Powell’s words, not his move, are what markets are watching—and they’re sending mixed signals.


The Fed delivered another 25 bps rate cut, ending its quantitative tightening program and setting short-term rates at their lowest level in three years. That’s kept mortgage rates steady near 6.25%, their lowest since early 2022. However, Powell’s hawkish tone during the press conference sparked a quick jump in bond yields, reminding markets that December’s cut “is not a foregone conclusion.” At the same time, home price data (FHFA and Case-Shiller) showed cooling appreciation, confirming affordability is improving gradually.


With the government shutdown still limiting labor and inflation data, investors will look to Fed speeches and manufacturing reports for guidance this week. Spreads remain the key story—they’ve hit their best levels in years, helping keep mortgage rates lower than they would be otherwise.