Mortgage Rates Hold Steady at 7.40%, Squeezing Homebuyer Budgets
MarketsFN Data Team
The 30-year fixed mortgage rate remained unchanged at 7.40% this week, keeping borrowing costs near 52-week highs and adding $264/month to a $400,000 loan compared to last year.
Today's 30-year rate matches the 52-week high of 7.40% and sits 54 bps above the 3-month average (6.86%), 98 bps above the 1-year average (6.42%), and 115 bps above the 5-year average (6.25%). A $400,000 mortgage now costs $2,770/month versus $2,506/month at last October's 5.98% rate low, highlighting the affordability crunch.
Rates continue to track the elevated 10-year Treasury yield (5.12%), with the 2.28 pp mortgage-Treasury spread reflecting persistent lender risk premiums. While the Fed Funds Rate (3.75%) has stabilized, bond market volatility and inflation concerns are keeping mortgage spreads wide.
Watch for Fed commentary on future rate path signals and Q3 GDP data due next week, which could sway Treasury yields. Seasonal inventory declines may also test buyer resilience at these rate levels.
Key Statistics at a Glance
| Week ending | October 22, 2026 |
| 30Y Fixed Rate | 7.40% |
| WoW change | ▼ 0.0 bps |
| YTD change | +124.0 bps |
| 15Y Fixed Rate | 6.71% |
| 15Y WoW | ▼ 2.0 bps |
| 3-month average | 6.86% |
| 1-year average | 6.42% |
| 5-year average | 6.25% |
| 52-week high | 7.40% |
| 52-week low | 5.98% |
| Fed Funds Rate | 3.75% |
| 10Y Treasury | 5.12% |
| Mortgage–10Y Spread | 2.28 pp |
| Monthly pmt $400k/30Y | $2,770 |
| vs 1 year ago | ▲ $263/month |
