The average rate on a 30-year fixed mortgage fell to 7.26% this week from 7.31% last week, according to Bankrate’s latest survey of lenders. The decline puts the benchmark rate below 7.5% but leaves borrowing costs well above the low recorded earlier in 2026.
Rates also declined for other widely used mortgage products. The average 15-year fixed rate dropped to 6.65% from 6.82% four weeks earlier, while the average 30-year jumbo rate was 7.36%, down from 7.53% four weeks earlier. Jumbo loans generally exceed the conforming loan limits used for loans eligible for purchase by Fannie Mae and Freddie Mac.
Mortgage rates remain higher than a year ago
Despite the weekly decline, each rate in Bankrate’s table was above its level from one year earlier. The 30-year fixed rate was 6.31% a year ago, compared with 7.26% this week. The 15-year rate was 5.56% a year ago, and the 30-year jumbo rate was 6.47%.
| Loan type | This week | Four weeks ago | One year ago |
|---|---|---|---|
| 30-year fixed | 7.26% | 7.53% | 6.31% |
| 15-year fixed | 6.65% | 6.82% | 5.56% |
| 30-year jumbo | 7.36% | 7.53% | 6.47% |
The 30-year fixed loans in the survey carried an average of 0.35 discount and origination points. Discount points are upfront charges that can lower an interest rate. Origination points are fees charged by a lender for creating, reviewing and processing a mortgage. The survey figures are averages and do not represent a rate available to every borrower.
Home prices add to the cost of borrowing
Bankrate’s illustration of the payment burden used a $417,500 existing-home price, the median recorded by the National Association of Realtors for September, and a 20% down payment. At a 7.26% mortgage rate, the example produced a monthly principal-and-interest payment of $2,281. That amount represented about 26% of the 2026 median family income of $106,800 reported by the U.S. Department of Housing and Urban Development.
The calculation excludes property taxes, homeowners insurance, mortgage insurance and other housing costs. It also assumes the borrower makes a 20% down payment, so the result is not a payment estimate for every homebuyer or loan structure.
Inflation remains a factor for mortgage rates
Bankrate said home prices continued to rise nationally, with the September median up 1.3% from a year earlier and reaching an all-time high for that month. At the same time, values have started to decline in some formerly fast-growing markets. The national S&P Cotality Case-Shiller index showed prices increasing 2.1% in the year through August, an acceleration from its previous reading.
Inflation was 3.7% in September, while the personal consumption expenditures index, the Federal Reserve’s preferred inflation gauge, was 3.0%. Both measures remained above the Fed’s 2% target. Bankrate said higher inflation has been the main force behind mortgage rates, which had reached a 2026 low of 6.09% before moving higher.
- The average 30-year fixed rate was 7.26% this week, down from 7.31% last week.
- The average 15-year fixed rate was 6.65%, while the average 30-year jumbo rate was 7.36%.
- The rates remained above their levels from one year earlier as home prices continued to weigh on affordability.
