US mortgage rates fell for the second week in a row, but they remain above 7%. The average mortgage rate dropped to 7.24% this week through Wednesday, down from 7.32% a week earlier, according to Freddie Mac data.US mortgage rates fall for a second week, but the 30-year fixed rate remains above 7%. (Pexel/Representative image) (Pexel)The 30-year fixed mortgage rate remains above 7%, making home loans expensive for buyers.
Although borrowing costs have fallen slightly, many people still find it difficult to afford a home because of high monthly mortgage payments.US Treasury yields remained close to 5% this week. Mortgage rates closely follow the 10-year US Treasury yield, which stayed near 5%, although it was slightly lower than it had been a few weeks earlier, according to Yahoo Finance.The Federal Reserve kept its benchmark interest rate unchanged on Wednesday.
The decision was widely expected by investors. As a result, bond yields and mortgage rates saw little movement after the announcement.High borrowing costs continue to affect homebuyers' budgets.
Mortgage rates have improved slightly, but many people still cannot afford the homes they want. High loan costs are also making potential buyers cautious about entering the housing market, Mortgage Bankers Association President and CEO Bob Broeksmit said in a statement, as cited by Yahoo Finance.Also read: US inflation rises to 3.6% in September, strengthening bets on Fed rate hike in DecemberMortgage applications for home purchases increased by 4%.
Applications rose in the week through Friday compared with the previous week as mortgage rates fell slightly, according to the Mortgage Bankers Association (MBA).Home purchase applications are still below last year's level. Despite the weekly increase, applications for home purchases remain 18% lower than the same period last year, according to the MBA.
This shows that many buyers are still waiting for borrowing costs to become more affordable, according to Yahoo Finance.Mortgage refinancing applications have fallen by more than 60%. Refinancing allows homeowners to replace an existing home loan with a new one, often to get a different interest rate or change their loan terms.
The sharp drop shows that high borrowing costs continue to limit refinancing activity, according to the MBA.Today's US mortgage ratesThe 30-year fixed mortgage rate stood at 7.15% on October 29, 2026. The following were the latest home purchase mortgage rates for Thursday, October 29, according to Zillow data:30-year fixed mortgage: 7.15%20-year fixed mortgage: 6.96%15-year fixed mortgage: 6.51%5/1 adjustable-rate mortgage (ARM): 7.10%7/1 adjustable-rate mortgage (ARM): 6.80%30-year VA mortgage: 6.60%15-year VA mortgage: 6.46%5/1 VA mortgage: 6.26%The 30-year fixed refinancing rate stood at 7.05%.
These were the latest mortgage refinancing rates for Thursday, October 29:30-year fixed refinance: 7.05%20-year fixed refinance: 6.77%15-year fixed refinance: 6.51%5/1 adjustable-rate refinance: 6.89%7/1 adjustable-rate refinance: 6.74%30-year VA refinance: 6.50%15-year VA refinance: 5.91%5/1 VA refinance: 6.11%What affects US mortgage rates?Mortgage rates depend on both personal finances and the wider economy. Borrowers can compare lenders to find better interest rates and lower fees.
Lenders may offer lower rates to people with higher credit scores, lower debt-to-income ratios and larger down payments, according to Yahoo Finance.Also read: US Treasury yields fall as markets weigh Fed rate outlook and December rate hike prospectsA borrower's credit score and debt can affect the interest rate offered by a lender. People who improve their credit scores, reduce their debt or save more money for a down payment may qualify for better mortgage rates.
However, the final rate also depends on the lender and wider market conditions.The state of the economy can also affect mortgage rates. When economic activity and employment weaken, interest rates may fall as policymakers try to encourage borrowing and spending.
When the economy is strong, interest rates may rise to help control spending and inflation.Refinancing rates can differ from home purchase rates. Mortgage refinancing rates are typically slightly higher than rates for buying a home, although the difference can vary depending on market conditions and the type of loan, Yahoo Finance reported.30-year vs 15-year fixed mortgage ratesA 30-year fixed mortgage offers lower monthly payments but can cost more over time.
The interest rate remains unchanged throughout the loan term, making monthly payments more predictable. However, borrowers pay interest over 30 years, which can increase the total cost of the loan.A 15-year fixed mortgage can reduce the total interest paid.
These loans generally have lower interest rates than 30-year mortgages, and borrowers pay off their loans in half the time. However, monthly payments are higher because the borrower must repay the loan over a shorter period.The choice between a 15-year and a 30-year mortgage depends on a buyer's budget.
A 30-year loan can make monthly payments more manageable, while a 15-year loan can help borrowers pay off their homes faster and save on total interest costs, according to Yahoo Finance.