Thirty-Year Mortgage Rates Drop To 7.24% After Hitting 7.40% In October, But Buyers Are Still Facing Borrowing Costs Far Above The 6.17% Rate Seen A Year Earlier

Mortgage rates finally eased this week, but anyone hoping for a bargain is going to need a longer memory. Freddie Mac reported on October 29, 2026, that the average rate on a 30-year fixed mortgage fell to 7.24%, down from 7.40% earlier in October and far above the 6.17% buyers saw a year ago.

Small house models, a door key and banknotes resting on printed financial charts

The numbers come from Freddie Mac’s Primary Mortgage Market Survey, the weekly reading many lenders and economists use to track where home loan rates stand.

The Rate Slid For The Second Straight Week, To The Lowest Level This Month

The 30-year fixed-rate average was 7.24% as of October 29, down from 7.32% the week before. Freddie Mac says rates fell again and that the 30-year reached its lowest level this month.

Earlier in October the average sat at 7.40%. That is a drop of 0.16 percentage points from the mid-month high to the end of the month.

It is a welcome move for people who have been staring at rate sheets, but it is a small step.

A Year Ago, The Same Loan Cost 6.17%

Here is the number that stings. A year earlier, the 30-year average was 6.17%, so today’s 7.24% is more than a full percentage point higher.

The 15-year fixed tells the same story. It averaged 6.60% this week, down from 6.68% the week before, and up from 5.41% a year earlier.

Freddie Mac says the decline is “modestly boosting purchasing power for prospective buyers.” The word modestly is doing a lot of work there.

What One Percentage Point Does To A Monthly Payment

Here is a simple illustration, using standard loan math for principal and interest only. On a 30-year fixed loan, every $100,000 borrowed costs about $680 a month at 7.24%.

At last year’s 6.17%, the same $100,000 cost about $610 a month. That is roughly $70 more every month for each $100,000, so a $300,000 loan costs about $210 more a month than it would have at last year’s rate.

At the 7.40% seen earlier in October, the payment would have been about $692 per $100,000. The recent slide trimmed roughly $11 a month from each $100,000, which is real money but not life-changing.

For perspective, that is the spread between a down payment that was easy and one that feels like a stretch. Rates matter most at the start of the loan, when most of every payment goes toward interest.

Keep in mind that this is only principal and interest. Property taxes, homeowner’s insurance and any mortgage insurance come on top of it.

What To Do If You Are Buying Or Thinking About It

Shop lenders before you fall in love with a house. Ask at least three lenders for a written loan estimate on the same day, and compare the rate, the fees and the points side by side.

Ask each lender what it costs to lock your rate and for how long. A lock protects you if rates jump before closing, and some lenders have a float-down option if they fall.

Do not forget the rest of the costs of owning. Budget for repairs, a roof that will not last forever and a water heater that will pick the worst weekend to fail.

Your credit score and your down payment affect the rate you are offered. Weekly averages describe a typical borrower, and your own quote could be higher or lower.

Check your credit reports for mistakes before you apply. You can get your reports for free at AnnualCreditReport.com, and a fixed error can sometimes improve your standing.

What To Do If You Already Have A Mortgage

If you locked in a low rate years ago, the plain advice is to hold on to it. Giving up a low rate for a higher one rarely makes sense unless you have a very good reason.

If your rate is higher than the current average, a refinance is not likely to be the answer yet, and closing costs can eat into any savings. Many people use a rule of thumb that they need to stay in the home long enough for the monthly savings to cover those costs.

If you are short on cash flow, call your servicer and ask what options exist. It is a free call, and you may hear about choices you never knew existed.

If you are close to retirement, think about the length of the loan as well. A 15-year loan at 6.60% costs more each month than a 30-year loan, but it builds equity faster and ends sooner, and the rate is lower.

Ask a lender or a housing counselor approved by HUD to walk through both options with your real numbers. Many of those counselors offer their help at no charge.

Why Weekly Averages Move, And Why You Should Not Time Them

Mortgage rates rise and fall with the wider bond market and with news about the economy. They can shift from one Thursday to the next.

Trying to guess the bottom is a game that even professionals lose. A better plan is to decide what monthly payment fits your budget, and to buy when you find a house that fits it.

The Freddie Mac survey shows rates moving down from their October peak, but still well above where they stood a year ago. For buyers, the best move this week is to run your own numbers, pick a payment you can live with and not let a single weekly headline push you into a decision.

Willow and Hearth