Willow and Hearth

Freddie Mac’s Primary Mortgage Market Survey for October 8, 2026 put the average rate on a 30 year fixed mortgage at 7.40 percent. That is up from 7.28 percent the week before and from 6.30 percent a year earlier. The 15 year fixed average was 6.73 percent, up from 6.60 percent the prior week and 5.53 percent a year ago.

The rate has risen from one week to the next since August 20, according to the survey archive. It reads 6.65 percent on August 20, 6.66 percent on August 27, 6.71 percent on September 3, 6.76 percent on September 10, 6.95 percent on September 17, 7.03 percent on September 24 and 7.28 percent on October 1 before reaching 7.40 percent on October 8.

What the change does to a $300,000 loan

The assumptions are a $300,000 loan, a 30 year fixed rate, full amortization and a payment of principal and interest only. Taxes, homeowners insurance, mortgage insurance, points and fees are not included. Each payment comes from the standard monthly payment formula.

At last week’s 7.28 percent the payment is $2,052.64 a month. At this week’s 7.40 percent it is $2,077.14. The 0.12 point rise adds $24.50 a month, or about $294 over a year.

The picture is larger over longer stretches. At the August 20 rate of 6.65 percent the payment would have been $1,925.89, so the move to 7.40 percent adds $151.25 a month. At the year ago rate of 6.30 percent it would have been $1,856.92, so this week’s payment is $220.22 higher each month, or about $2,643 a year.

Across all 360 payments, the interest on this loan comes to about $447,770 at 7.40 percent and about $368,491 at 6.30 percent. That is a gap of roughly $79,280 under the same assumptions.

The 15 year loan carries a lower rate and a higher payment. On the same $300,000 with the same assumptions, 6.73 percent for 15 years comes to $2,651.40 a month, and last week’s 6.60 percent would have been $2,629.84. The 0.13 point rise adds $21.56 a month, and the total interest over the 180 payments is about $177,253. The 30 year loan at 7.40 percent has a payment $574.26 lower than the 15 year payment, though the 30 year loan accrues far more interest over its life.

What the survey measures

Freddie Mac describes the method in a research note on the survey dated November 3, 2022. The rate comes from loan applications submitted to its automated underwriting system, limited to conventional, conforming, fully amortizing home purchase loans. The note describes borrowers who put 20 percent down and have excellent credit, with a credit score of 740 or higher.

The same note says the reported rate is measured at the application stage and does not represent the rate at origination. It also says discount points and origination fees are not captured. The survey publishes weekly on Thursdays at noon Eastern, and on the Wednesday when a holiday falls on a Thursday.

Because of those limits, the 7.40 percent figure describes a strong borrower profile and not a quote. A buyer with a smaller down payment, a lower credit score or a lender fee structure that includes points can see a different number.

Steps for a buyer

The Consumer Financial Protection Bureau advises requesting multiple Loan Estimates from different lenders. Its Loan Estimate page says the form lists the loan amount, principal and interest, the estimated total monthly payment, escrowed and non escrowed taxes and insurance, estimated closing costs and whether a rate lock applies. The bureau says the best way to tell whether an offer is competitive is to compare it with Loan Estimates from other lenders.

In its guide to shopping for a mortgage, the CFPB says to make it a goal to compare at least three offers from different lenders and says shopping around can save you thousands of dollars. It also says that getting several preapprovals within a short time should not have a major effect on your credit score. Freddie Mac’s own survey page makes a similar point, advising that getting multiple quotes can potentially save thousands over the life of a loan.

The Loan Estimate page adds that some lenders lock your rate when they issue the estimate and some do not, and that the top of page 1 of the form shows whether your rate is locked and until when. The weekly average has risen seven weeks in a row, so whether a rate is locked is worth reading on each estimate.

Use the worked figures above as a way to read your own Loan Estimate, swapping in your rate and loan amount. For questions about your own finances or your state’s lending rules, a licensed mortgage professional or your state housing agency can give answers this article cannot.