Mortgage Rates Ease at Month-End

The national average for a 30-year fixed mortgage eased to 7.24% in the week ending October 29, down from 7.32% the week before, according to Freddie Mac's weekly survey. For home shoppers comparing financing options, that marked a small improvement.

One day before that reading, the Federal Reserve kept its federal funds target range unchanged at 3-3/4 to 4 percent in a 10-2 vote. The two dissents were headed in the same direction: Lisa D. Cook and Beth M. Hammack both favored raising the range by one-quarter percentage point. That decision, and the tighter policy those two members preferred, provided the backdrop for the latest mortgage figures.

What the decline means in dollar terms

This example is hypothetical and does not describe a real borrower or a specific loan offer. On a $400,000, 30-year fixed mortgage at the new survey average, monthly principal and interest would be $2,725.99. At the prior week's average, the same loan would have cost $2,747.72, making the payment $21.73 lower. Those figures do not include taxes, insurance, mortgage insurance, points, fees or closing costs. Sam Khater, Freddie Mac's chief economist, said the average fell again, “reaching its lowest level this month and modestly boosting purchasing power for prospective buyers.”

How lender quotes compared

Most lender-posted quotes tracked by RateZip did not move much over the week. Where changes did appear, they were modest, with some rates edging higher and others lower. Rocket Mortgage's 30-year fixed rate fell by 0.125 percentage point between October 26 and October 30, while U.S. Bank's jumbo 30-year fixed rate increased by the same amount over that span.

Among posted 30-year fixed rates, the range stretched from AmeriSave's 5.99% to New American Funding's 7.5%. Those quotes are built using different assumptions about credit, points, fees, loan size and eligibility, so they are not competing offers available to every borrower. The survey figure is a national average, not a personalized quote from any one lender, so it may differ from an advertised rate.

How it lines up with Treasury yields

The 10-year Treasury yield is the benchmark most closely associated with long-term mortgage pricing. It finished at 4.98% on Thursday, down 2 basis points from the prior week's last close, according to FRED data. On their most recent readings, Rocket Mortgage and Wells Fargo both listed 30-year fixed rates of 7.25%, while U.S. Bank posted 7.125%. Those figures are close to the survey average and still well above the Treasury yield. Because they are based on different dates and products, they do not by themselves show how lender pricing reacts to Treasury moves. A quote near the national average still says nothing about the points, fees or credit profile behind it, all of which affect the final cost of the loan.

What the Fed left undecided

In its statement, the Federal Reserve said inflation remains elevated and that additional information will help determine what policy is needed to return inflation to its 2% goal in a timely manner. The committee did not indicate when its target range could change.

For closed-end mortgages, APR includes interest and certain loan charges; HELOC APR excludes fees. Adjustable-rate APR is not a maximum future rate. See the CFPB explanation.

National mortgage-rate benchmark cited in this article. Source: Freddie Mac Primary Mortgage Market Survey via FRED®, Federal Reserve Bank of St. Louis.

RateZip is operated by Peklava LLC, DBA RateZip, a licensed mortgage broker (NMLS ID 1592292). We are compensated by some of the partners shown, which may affect which offers appear and where. It does not affect our reporting or recommendations. See our editorial standards.

RateZip is operated by Peklava LLC, DBA RateZip, a licensed mortgage broker (NMLS ID 1592292). We are compensated by some of the partners shown on this page, which may affect which offers appear and where. It does not affect our reporting or our recommendations. Rates shown were last updated recently at 9:50 a.m. ET. See our editorial standards and how we use AI.

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