Freddie Mac reported October 8 that the average 30-year fixed mortgage rate rose to 7.40%, from 7.28% the previous week and 6.30% a year earlier. It was the highest reading since November 2023. The 15-year fixed rate also rose, to 6.73% from 6.60% a week earlier.
The increase raises the monthly principal-and-interest cost of taking out a new mortgage and can reduce the home price a buyer can afford. Existing homeowners with fixed-rate mortgages generally are not repriced by this weekly move, while some refinancing borrowers and people with adjustable-rate loans may face different exposure. Freddie Mac's figure is a national survey average, not a quote available to every borrower.
Mortgage rates move with bond-market conditions and inflation expectations, among other factors; the survey does not establish a single cause for this week's change. The higher rate adds to the affordability pressure on prospective buyers, but does not mean every home price or local mortgage offer changed by the same amount. Could this raise the payment on an existing fixed-rate mortgage? Usually no; it chiefly affects people taking out or refinancing a loan, while existing fixed-rate payments generally stay the same.