Mortgage Rates Slip to 7.24%, Lowest This Month, but Stay Over a Point Above Last Year
A second straight weekly decline trims payments slightly, but buyers still pay about $213 more a month on a $300,000 loan than a year ago.
The average rate on a 30-year fixed mortgage fell for a second consecutive week to 7.24%, from 7.32% last week and 7.40% two weeks ago, according to Freddie Mac. It is the lowest reading this month, helped by lower 10-year Treasury yields, which have eased partly as investors moved out of technology stocks and into government bonds. Rates still sit more than a full percentage point above year-ago levels, which keeps affordability and housing demand under pressure.
The rates
| Measure | 30-year fixed | 15-year fixed |
|---|---|---|
| This week | 7.24% | 6.60% |
| Last week | 7.32% | 6.68% |
| Year ago | 6.17% | 5.41% |
| Weekly change | -0.08 pt | -0.08 pt |
| Change from a year ago | +1.07 pts | +1.19 pts |
Freddie Mac Chief Economist Sam Khater said the 30-year rate declined again this week to its lowest level of the month, which modestly improves purchasing power for prospective buyers. The survey covers conventional, conforming home-purchase loans for borrowers with 20% down and excellent credit, so many buyers will see different rates.
What it means for a buyer
On a $300,000 loan, the monthly principal-and-interest payment at 7.24% is about $2,044 by our calculation, compared with roughly $1,832 at last year's 6.17%, a difference of about $213 a month. The drop from 7.32% saves only about $16 a month, and the move from 7.40% two weeks ago about $33. In other words, two weeks of relief is welcome but small next to the year-over-year increase.
Which stocks could be affected, and how
Mortgage rates feed through to housing activity, and housing activity feeds through to a group of listed companies. The effects below are directional and depend on whether rates keep falling; a one-week move of eight basis points is a modest change. Earlier this month, when Treasury yields dropped sharply on Oct. 15, homebuilders rallied, with Lennar rising more than 5%, which shows how sensitive the group is to the rate outlook.
| Group | Examples | Possible effect | Why |
|---|---|---|---|
| Homebuilders | Lennar (LEN), D.R. Horton (DHI), PulteGroup (PHM), Toll Brothers (TOL), KB Home (KBH) | Tailwind | Lower rates improve affordability and demand, and may reduce the mortgage buydowns and price cuts builders use to close sales. Rates above year-ago levels still limit the benefit. |
| Mortgage lenders | Rocket Companies (RKT), UWM Holdings (UWMC) | Tailwind | Falling rates lift purchase and refinance applications. At 7%-plus, refinancing remains a small share of activity, so any volume gain is likely to be gradual. |
| Real estate platforms and brokers | Zillow (Z), Compass (COMP) | Mixed | Transaction volume rises if buyers return, but many owners hold below-market mortgages and may stay put, which keeps listings thin. |
| Home improvement | Home Depot (HD), Lowe's (LOW) | Mixed | Home turnover drives remodeling and big-ticket purchases, so a recovery in sales would help; lower rates alone do little to change spending in the near term. |
| Title insurance | Fidelity National Financial (FNF) | Tailwind | Revenue depends on the number of home purchases and refinances closing. |
One caution: the same drop in Treasury yields that is helping mortgage rates is tied partly to investors leaving technology shares for bonds. If that rotation fades, yields and mortgage rates could rise again, reversing the benefit for rate-sensitive housing stocks.
What to watch
Next week's Freddie Mac survey will show whether the decline continues. Builders and lenders will also be watched for commentary on incentives, order trends and application volumes in upcoming earnings reports.
Sources: Freddie Mac Primary Mortgage Market Survey, released Oct. 29, 2026. Monthly payment figures are by our calculation using a 30-year fixed term. Company effects are general directional views, not forecasts. This is informational, not a recommendation to buy or sell.
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