However, borrowing costs remains close to their highest levels since November 2023
Published Fri, Oct 23, 2026 · 02:30 PM
[WASHINGTON] Mortgage rates fell for the first time in nine weeks, providing little comfort to sellers facing the slowest US housing market in at least 25 years.
The average for a 30-year fixed loan declined from 7.4 to 7.32 per cent, Freddie Mac said on Thursday (Oct 22).
The rate remains close to the highest level since November 2023. A year ago, it was 6.19 per cent.
Borrowing costs that have surged over the past two months have strained housing affordability, a key issue for voters with the midterm elections less than two weeks away. More sellers are being forced to cut prices, offering some relief to the buyers who remain.
Before the Freddie Mac report was released, Realtor.com senior economist Jake Krimmel said: “Buyers may be gaining power at the negotiating table as the pace of sales slows, but that leverage has come at the expense of affordability.”
Pending sales of existing US homes fell to a record low in September as mortgage rates above 7 per cent weighed on demand, going by a National Association of Realtors index dating to 2001.
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Even with this week’s drop, mortgage rates are up 1.17 percentage points since the start of the year, the largest yearly advance since 2022.
At current levels, someone would spend almost US$355 more a month in principal and interest on a US$500,000 property, and about US$710 more on a US$1 million property, than if they had locked in a mortgage when rates fell below 6 per cent in early February.
The calculation assumes a 20 per cent down payment. BLOOMBERG