Two consecutive weeks of decline ease pressure on homebuyers, even as a potential December rate hike looms
Relief has been scarce in the US mortgage market this autumn. For two consecutive weeks, it arrived anyway.
Retreating Treasury yields pulled the 30-year fixed-rate mortgage to 7.24% for the week ending October 29, its lowest mark in more than a month, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS).
The rate eased from 7.32% the prior week and remains well above the 6.17% average recorded at this point in 2025.
The run-up since late February has added approximately $350 to the monthly payment on a $400,000 home loan at the current average.
Sam Khater, Freddie Mac’s chief economist in McLean, Virginia, said the week’s decline restored some buyer confidence heading into the traditionally quiet winter months.
The 15-year fixed-rate mortgage – widely used by refinancing borrowers – fell to 6.60% from 6.68%, still more than a percentage point above its 5.41% year-ago level.
Treasury yields ease after weeks of turbulence
The week’s rate movement tracks the 10-year Treasury yield, which lenders use as a guide when pricing home loans.
As of Thursday afternoon, the yield sat at roughly 4.98%, down from a peak above 5.30% earlier in October, but still well above the 3.97% level recorded before the US-Iran conflict that began in late February.
3Q GDP came in ahead of forecasts as business spending on data centres and AI infrastructure accelerated. Meanwhile, Mike Fratantoni of MBA notes that inflation remains well above the Federal Reserve's target, keeping future rate hikes firmly in focus. https://t.co/eTbilrWORE
— Mortgage Professional America Magazine (@MPAMagazineUS) October 29, 2026
What this means for brokers and buyers
Wednesday’s Federal Open Market Committee (FOMC) decision provided the immediate backdrop. Policymakers voted 10-2 to hold the benchmark federal funds rate at its current 3.75%–4% range, and CME FedWatch subsequently placed roughly 80% odds on a hike at the December 8–9 meeting.
Odeta Kushi, deputy chief economist at First American Financial Corporation in Washington, DC, told Mortgage Professional America ahead of the October meeting that a rate hike is no longer unthinkable.
“The more likely story for the second half of the year is volatility around a higher-for-longer range, rather than a meaningful decline in mortgage rates,” she said.
“If inflation remains sticky and investors continue to demand compensation for inflation risk, mortgage rates may stay elevated.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
