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Mortgage rates fall to under 7.25 percent
Developed over time first seen 2 weeks ago
The average US 30-year fixed mortgage rate fell to 7.24% in the week ending 29 October 2026, down from 7.32% a week earlier, according to Freddie Mac. It was the second consecutive weekly decline and brought the rate below 7.25% for the first time since September. The average 15-year fixed rate also fell, from 6.68% to 6.60%. The figures offer prospective buyers some relief after the 30-year rate reached 7.40% earlier in October.
The improvement is modest against the wider affordability pressure facing buyers. In a separate survey covering the week ending 23 October, the Mortgage Bankers Association found that mortgage applications rose 3.4% from the previous week, including a 4% rise in purchase applications. Yet purchase applications remained 18% below their level a year earlier, while refinancing applications were 61% lower. The surveys measure different groups of loans over different periods, so their average rates should not be compared directly; together, they suggest that a small fall in borrowing costs has prompted some activity without resolving the difficulty of buying at current rates.
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In short
- The average 30-year mortgage rate fell to 7.24%.
- It was the second weekly decline in a row.
- Applications rose, but demand remained below last year’s level.
How this story developed
- 2 weeks ago The average US 30-year fixed mortgage rate fell to 7.24% in the week ending 29 October 2026, down from 7.32% a week earlier, according to Freddie Mac. It was the second consecutive weekly decline and brought the rate below 7.25% for the first time since September.
- The Hill Mortgage rates fall to under 7.25 percent
- Freddie Mac Mortgage Market Survey Archive
Explained simply
A fixed-rate mortgage keeps the interest rate the same for an agreed period, so monthly repayments are more predictable. In the US, 30-year and 15-year fixed mortgages are common; the longer term usually means lower monthly payments but more interest paid over time.
Freddie Mac tracks average mortgage rates, while the Mortgage Bankers Association surveys applications to buy homes or refinance existing loans. Rates affect how much buyers can borrow and what their repayments cost, but home prices, incomes and the availability of homes also shape affordability.
When borrowing costs ease, some buyers may find it easier to proceed, though even a small change may not make homes affordable for everyone. Application figures help show whether people are responding, but they do not measure all home purchases.
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