Average long-term US mortgage rate eases to 7.32% in first pullback since late August

Average long-term US mortgage rate.

Key points

• DC Charlotte Kramon, Associated Press, Alex Veiga, Associated Press, Mary Clare Jalonick, Associated Press March 12, 2026.
• News Alex Veiga, Associated Press, Elaine Kurtenbach, Associated Press March 9, 2026.
• The benchmark 30-year fixed-rate mortgage dropped to 7.32% from 7.40% last week, mortgage buyer Freddie Mac remarked Thursday.
• In late February, the average rate on a 30-year mortgage briefly dipped to 5.98%, its lowest level going back to late 2022.
• The 10-year Treasury yield has been mostly easing the last couple of weeks after climbing to its highest level since 2002.

Average long-term US mortgage rate eases to 7.32% in first pullback since late August. By: Alex Veiga, Associated Press – October 22, 2026.

FILE – A sign is posted for a new home for sale in Ambler, Pa., Oct. 16, 2025. (AP Photo/Matt Rourke, File).

Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, additionally eased this week. That average rate slipped to 6.68% from 6.71% last week.

Mortgage rates fell this week for the first time since late August, easing some of the pressure on prospective homebuyers facing higher borrowing costs on home loans.

For context, the benchmark 30-year fixed-rate mortgage dropped to 7.32% from 7.40% last week, mortgage buyer Freddie Mac remarked Thursday. One year ago, the average rate was 6.19%.

Rates on home loans are influenced by inflation, Federal Reserve policy and bond-market investors' expectations for the economy, among other factors. They generally follow the trajectory of the 10-year Treasury yield. It lenders employ as a guide to pricing home loans.

When the U.S. War with Iran began, pushing up the cost of oil and driving inflation higher, mortgage rates have been climbing since late February. The run-up in rates additionally reflects heightened bond market volatility. It has pushed up yields on U.S. Treasurys.

For context, the 10-year Treasury yield has been mostly easing the last couple of weeks after climbing to its highest level since 2002. That's caused the average rate on a 30-year mortgage to hold steady after reaching 7.4%, its highest level in almost three years.

For context, the yield was at 5% at midday on the bond market Thursday. It surged to more than 5.30% earlier this month and remains well above its 3.97% level from before the war with Iran.

U.S. Home sales remain stalled this year in sizeable part as of rising mortgage rates. It can add hundreds of dollars a month in costs for borrowers, limiting homebuyers' purchasing power and prompting plenty of to put off buying a home.

In late February, the average rate on a 30-year mortgage briefly dipped to 5.98%, its lowest level going back to late 2022. The rise in rates since then has continued roughly $355 to the monthly cost for a borrower financing a $400, 000 home loan, going by the latest average rate.

Depending on a borrower's income, credit and other factors, they may qualify for a rate on a 30-year mortgage that is below or above the current average.

When mortgage rates began to climb from pandemic-era lows, the U.S. Housing market has been in a slump since 2022. Sales of previously occupied U.S. Homes were essentially flat last year, stuck at a 30-year low.

In its latest forecast, mortgage buyer Fannie Mae projects that the rate on a 30-year mortgage will average 7.4% in the final quarter of this year, and average 7.5% in 2027. Regarding the Author(s). Alex Veiga, Associated Press. News Anne D'Innocenzio, Associated Press October 15, 2026.

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Taken together, the developments around average long-term US mortgage rate eases to 7.32% in first pullback since point to a situation that is still moving, and the coming days should bring more clarity.