Mortgage Rates Hold at 7.40%, Ending a 7-Week Climb

The average 30-year fixed mortgage rate held at 7.40% this week, Freddie Mac reported on Thursday. That ends a run of seven consecutive weekly increases, though the rate is still the highest since November 2023.

What are the key numbers?

• 30-year fixed: 7.40%, unchanged from last week and up from 6.27% a year ago, a rise of 1.13 percentage points
• 15-year fixed: 6.71%, down slightly from 6.73% last week and up from 5.52% a year ago

What does the gap cost?

On a $300,000 loan, 7.40% instead of last year's 6.27% means about $2,077 a month in principal and interest versus about $1,851, roughly $225 more a month, or about $2,700 a year (our calculation).

Why did it pause?

Weekly averages smooth out the daily swings. Other gauges were still higher: the Mortgage Bankers Association's rate for the week ending October 9 was 7.50%, and a daily tracker showed about 7.56% on Wednesday.

 

What could move it next?

Wednesday's CPI report showed inflation at 3.7%, and traders raised the odds of a Fed rate hike at the October 27-28 meeting to roughly 44%. Fannie Mae now forecasts 7.4% for the fourth quarter and 7.5% through 2027.

What should buyers do?

A pause is not a drop. Compare at least three lenders, look at APR and fees, and ask about float-down options if you lock.