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- calendar_today October 29, 2026
30-Year US Mortgage Rate Declines to 7.24%
The average long-term mortgage rate in the United States has decreased for the second consecutive week, reaching its lowest point in more than a month. According to mortgage buyer Freddie Mac, the benchmark 30-year fixed-rate mortgage dropped to 7.24% as of Thursday, down from 7.32% a week earlier. For comparison, a year ago, the average rate stood at 6.17%.
15-Year Fixed Mortgage Rates Also Fall
In addition to the decline in the 30-year mortgage rate, the average rate on 15-year fixed-rate mortgages—often preferred by those seeking to refinance their home loans—fell to 6.60% from 6.68% last week. This rate was 5.41% one year ago.
Relief for Homebuyers Facing High Borrowing Costs
These lower mortgage rates offer some relief to prospective homebuyers, who have been dealing with increased borrowing costs on home loans. As mortgage rates decrease, monthly payments on new loans may be more manageable, though rates remain significantly above pandemic-era lows.
Economic Factors Influencing Mortgage Rates
Mortgage rates are influenced by several key factors, including inflation, Federal Reserve monetary policy, and the expectations of bond-market investors. In general, mortgage rates tend to follow the ups and downs of the 10-year Treasury yield, which serves as a guide for lenders in setting home loan pricing.
Mortgage rates began climbing again in late February amid the U.S.-Iran conflict, which pushed oil prices—and consequently, inflation—higher. Increased volatility in the bond market has further pushed up yields on U.S. Treasurys, prompting the rise in mortgage rates.
Recent Trends in Treasury Yields and Mortgage Rates
After surging to over 5.30% earlier this month, the 10-year Treasury yield eased to 4.98% on Thursday. This decline has contributed to the recent drop in mortgage rates, which peaked at 7.4% earlier in October—the highest level in nearly three years. The current Treasury yield remains elevated compared to its pre-war level of 3.97%.
Housing Market Continues Slump Amid High Rates
Despite this recent dip in rates, U.S. home sales have stalled throughout the year, driven largely by the higher cost of borrowing. For example, a borrower financing a $400,000 home at the current average rate pays roughly $350 more per month than in February, when rates briefly fell to 5.98%. Such increased costs have made it harder for buyers to afford homes, leading many to delay purchases and contributing to a continuing slump in the housing market.
Since 2022, mortgage rates have climbed from pandemic lows, and sales of previously owned homes have lingered at multi-decade lows. Depending on credit, income, and other personal factors, individual borrowers may still qualify for rates that are higher or lower than the national average.
Source: clickorlando.com.
