U.S. Mortgage Rates Dip as Housing Market Remains Stalled
Freddie Mac reports a slight drop in 30-year mortgage rates to 7.32 percent amid a broader housing slump and persistent inflation.
The benchmark 30-year fixed-rate mortgage in the United States fell to 7.32 percent this week, down from 7.40 percent, marking the first decline since late August. Despite this dip, rates have remained above 7 percent for five consecutive weeks. The 15-year fixed-rate mortgage also decreased to 6.68 percent. This pullback follows a period of climbing rates that began in late February, coinciding with the start of a U.S. war with Iran that drove up oil prices and inflation.
Freddie Mac reported the rate changes, which are linked to an easing of the 10-year Treasury yield. However, high borrowing costs and inflation—which the U.S. Bureau of Labor Statistics reported at 3.7 percent in September—continue to stall home sales. This has created a lock-in effect where homeowners avoid selling to maintain low pandemic-era rates. While the national median sales price rose 1.3 percent in September to $417,500, regional markets in Florida and Texas are seeing corrections, with Austin home prices dropping more than 8 percent in September.
To clear inventory, 43 percent of home builders cut prices in October, the highest share since 2020. Fannie Mae forecasts the 30-year rate will average 7.4 percent in the final quarter of 2026 and reach 7.5 percent in 2027. Oxford Economics expects housing activity to remain in a state of gridlock until a projected recovery near the end of 2027.
