US mortgage rates hold at 7.4 percent as housing market activity weakens

The average 30-year fixed-rate mortgage stood at 7.40 percent as of October 15, 2026, according to Freddie Mac, matching the highest level since 2023 after seven consecutive weeks of increases. Existing-home sales edged up only 1.5 percent in September to a seasonally adjusted annual rate of 3.99 million, still down 2.2 percent from a year earlier, according to the National Association of Realtors. Pending home sales rose just 0.3 percent month-over-month in August but remained 4.7 percent below year-earlier levels. Purchase applications fell 16 percent year-over-year according to high-frequency data, while a separate report from Redfin found pending sales in September dropped 4 percent from August, the steepest monthly decline in more than three years.

National home price growth reaccelerated modestly, with single-family home prices rising 1.8 percent year-over-year in August compared to 1.6 percent in July. The median existing-home price in September reached 417,500 dollars, up 1.3 percent from a year earlier. Active listings stood at 1.60 million in September, up 4.6 percent year-over-year but still below typical pre-pandemic levels.

Prospective homebuyers face reduced purchasing power as borrowing costs remain elevated. Analysts expect housing starts to fall further in coming months as mortgage rates keep downward pressure on residential investment, though severe inventory constraints are insulating prices from broader declines.

Sources

Freddie Mac, Primary Mortgage Market Survey, October 15, 2026, freddiemac.com National Association of Realtors, Existing-Home Sales Increased 1.5% in September, According to NAR Report, October 13, 2026, nar.realtor National Association of Realtors, Existing-Home Sales Housing Snapshot, October 13, 2026, nar.realtor Redfin, U.S. Pending Home Sales Sink Near 12-Year Low, October 13, 2026, redfin.com Global Housing Watch, US Housing View – October 16, 2026, October 16, 2026, globalhousingwatch.substack.com Calculated Risk, Part 1: Current State of the Housing Market; Overview for mid-October 2026, October 2026, calculatedrisk.substack.com Cotality, US home price insights — October 2026, October 2026, cotality.com