Average long-term US mortgage rate eases to 7.32% in first pullback
since late August
[October 23, 2026] By
ALEX VEIGA
Mortgage rates fell this week for the first time since late August,
easing some of the pressure on prospective homebuyers facing higher
borrowing costs on home loans.
The benchmark 30-year fixed-rate mortgage dropped to 7.32% from 7.40%
last week, mortgage buyer Freddie Mac said Thursday. One year ago, the
average rate was 6.19%.
Borrowing costs on 15-year fixed-rate mortgages, often sought by
borrowers refinancing a home loan, also eased this week. That average
rate slipped to 6.68% from 6.71% last week. A year ago, it was at 5.44%.
Rates on home loans are influenced by inflation, Federal Reserve policy
and bond-market investors’ expectations for the economy, among other
factors. They generally follow the trajectory of the 10-year Treasury
yield, which lenders use as a guide to pricing home loans.
Mortgage rates have been climbing since late February, when the U.S. war
with Iran began, pushing up the price of oil and driving inflation
higher. The run-up in rates also reflects heightened bond market
volatility, which has pushed up yields on U.S. Treasurys.
The 10-year Treasury yield has been mostly easing the last couple of
weeks after climbing to its highest level since 2002. That's caused the
average rate on a 30-year mortgage to hold steady after reaching 7.4%,
its highest level in nearly three years.
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 The yield was at 5% at midday on the
bond market Thursday. It surged to more than 5.30% earlier this
month and remains well above its 3.97% level from before the war
with Iran.
U.S. home sales remain stalled this year in large part because of
rising mortgage rates, which can add hundreds of dollars a month in
costs for borrowers, limiting homebuyers’ purchasing power and
prompting many to put off buying a home.
In late February, the average rate on a 30-year mortgage briefly
dipped to 5.98%, its lowest level going back to late 2022. The rise
in rates since then has added roughly $355 to the monthly cost for a
borrower financing a $400,000 home loan, going by the latest average
rate.
Depending on a borrower’s income, credit and other factors, they
may qualify for a rate on a 30-year mortgage that is below or above
the current average.
The U.S. housing market has been in a slump since 2022, when
mortgage rates began to climb from pandemic-era lows. Sales of
previously occupied U.S. homes were essentially flat last year,
stuck at a 30-year low.
In its latest forecast, mortgage buyer Fannie Mae projects that the
rate on a 30-year mortgage will average 7.4% in the final quarter of
this year, and average 7.5% in 2027.
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