Mortgage Rates Steady at 7.4%, Challenging Housing Market

WHO:

ABC News - Freddie Mac, a mortgage buyer, reported the mortgage rates.

WHAT:

Bloomberg - U.S. mortgage rates were unchanged at 7.4%.

ABC News - The average long-term U.S. home loan rate is at its highest level in nearly three years.

ABC News - The benchmark 30-year fixed-rate mortgage remained at 7.40%.

ABC News - The average rate one year ago was 6.27%.

ABC News - The average rate on 15-year fixed-rate mortgages dropped to 6.71% from 6.73%.

ABC News - The average rate on 15-year fixed-rate mortgages was 5.52% a year ago.

ABC News - The 10-year Treasury yield was at 5.10% at midday.

ABC News - The yield had topped 5.30% earlier in the month.

ABC News - The increase in the 30-year mortgage rate translates to an additional monthly cost of $376 for a borrower financing a $400,000 home loan.

ABC News - Existing U.S. home sales rose in September from the previous month.

WHERE:

ABC News - The U.S. housing market is experiencing challenges.

WHEN:

ABC News - The highest mortgage rate since November 16, 2023, was 7.44%.

ABC News - The average rate on a 30-year mortgage briefly dipped to 5.98% in late February.

WHY:

ABC News - Rising mortgage rates are limiting homebuyers’ purchasing power and prompting many to delay buying a home.

ABC News - The increase in mortgage rates is influenced by inflation, Federal Reserve policy, and bond-market investors’ expectations for the economy.

ABC News - The rise in rates is attributed to the U.S. war with Iran, which has pushed up oil prices and driven inflation higher.

HOW:

ABC News - Mortgage rates generally follow the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.

(UPDATED October 15, 2026 20:01 UTC)

Mortgage rates in the U.S. remain unchanged at 7.4%, marking the highest level for long-term home loans in nearly three years, with the benchmark 30-year fixed-rate mortgage holding steady at that rate. This increase translates to an additional monthly cost of $376 for borrowers financing a $400,000 home loan, as rising rates continue to limit homebuyers' purchasing power and prompt many to delay their purchases. Influenced by factors such as inflation, Federal Reserve policy, and the ongoing U.S. war with Iran, which has driven oil prices higher, the average rate on 15-year fixed-rate mortgages has slightly decreased to 6.71%.