The average rate on a 30-year fixed-rate mortgage fell to 7.24% for the week ending Thursday, Oct. 29, Freddie Mac reported. The decline was the second in as many weeks and brought the benchmark rate to its lowest level in more than a month.
The average had been 7.32% the previous week. It stood at 6.17% one year earlier. The figures are national averages and do not represent the rate every borrower will receive. Lenders set individual offers based on factors that include a borrower’s income and credit, as well as other details.
Both fixed-rate averages moved lower
| Mortgage term | Oct. 29 average | Previous week | One year earlier |
|---|---|---|---|
| 30-year fixed | 7.24% | 7.32% | 6.17% |
| 15-year fixed | 6.60% | 6.68% | 5.41% |
The average rate for a 15-year fixed-rate mortgage also declined, reaching 6.60% from 6.68% the week before. These loans are often used by homeowners refinancing an existing mortgage, although the shorter repayment period can result in higher monthly payments than a longer-term loan, all else being equal.
Mortgage rates respond to several forces, including inflation, Federal Reserve policy and investors’ expectations for the economy. They generally track the direction of the 10-year Treasury yield, a benchmark that lenders use when pricing home loans. The yield was 4.98% at midday in bond-market trading Thursday.
Bond-market moves have eased some pressure
The 10-year yield had climbed above 5.30% earlier in October, according to the report, but it has mostly declined during the month. The yield remains above its 3.97% level before the war with Iran began in late February. The conflict pushed up oil prices and contributed to higher inflation, while increased bond-market volatility lifted Treasury yields and mortgage borrowing costs.
The average 30-year mortgage rate reached 7.4% earlier in October, its highest level in nearly three years. The rate had briefly fallen to 5.98% in late February, its lowest point since late 2022, before rising sharply. The change since then has added roughly $350 a month to the cost for a borrower financing a $400,000 home loan, based on the latest average rate.
High borrowing costs continue to weigh on buyers
U.S. home sales have remained stalled this year in part because higher mortgage rates raise monthly borrowing costs. The added expense reduces the amount many prospective buyers can afford and has led some households to delay a purchase.
- The 30-year fixed-rate average declined to 7.24% from 7.32%.
- The 15-year fixed-rate average fell to 6.60% from 6.68%.
- Both averages remained above their levels from one year earlier.
Mortgage rates can change from week to week as Treasury yields, inflation expectations and financial-market conditions shift. Freddie Mac’s weekly averages provide a broad measure of borrowing costs, while the rate available to a particular borrower depends on the loan and the borrower’s financial profile.
