US mortgage rates ease to 7.32%

The average rate on a 30-year fixed-rate U.S. mortgage declined to 7.32% as of October 22, 2026, offering a modest reduction in borrowing costs after weeks of increases. The new reading is down from 7.40% a week earlier and remains above the 6.19% average recorded a year ago. Freddie Mac’s Primary Mortgage Market Survey identifies this as a shift after a steady run-up in rates, though overall financing conditions for homebuyers remain tight.

The 15-year fixed-rate mortgage, a popular option for refinancing, also eased, with the average rate slipping to 6.68% from 6.71% the previous week. One year earlier, the 15-year rate stood at 5.44%, underscoring how much borrowing costs have risen over the past year despite the latest weekly decline.

Even after the latest dip, the 30-year fixed mortgage rate has stayed above 7% for five consecutive weeks. Prospective homebuyers continue to face affordability pressures, as higher rates translate into significantly larger monthly payments than those available when borrowing costs were lower. High housing costs have put the market in a deep freeze.

The elevated rate environment follows a period when mortgage costs had been far lower, which helped push home prices up across the country. Although the most recent data show a small decline in rates, the current levels still limit purchasing power compared with the conditions that prevailed when mortgage rates were below 3% and demand surged.

The pressure from higher mortgage rates has weighed on housing activity. Existing-home sales fell 2.2% in September from a year earlier. Other important indicators, including housing starts, pending home sales and builder confidence, have also recently slumped, reflecting reduced transaction volumes and more cautious sentiment across the sector.

The slowdown has contributed to what analysts describe as gridlock in the housing market, with many owners reluctant to give up previously secured low mortgage rates. This lock-in effect helps keep the supply of existing homes constrained, even as demand is curtailed by the higher cost of new borrowing.

Despite the overall slowdown, there are signs of adjustment in parts of the market. Home prices are starting to fall in some pockets of the country, as sellers reconsider asking prices in light of reduced buyer demand and higher financing costs. This has begun to tilt negotiations in favor of buyers who remain active and are able to secure financing at current rates.

Builders of new homes are also responding to weaker demand. Some builders are more willing to negotiate, which may help align new-home pricing with what buyers can afford in a higher-rate environment, even as overall borrowing costs remain elevated.