U.S. mortgage rates hold steady at 7.40% amid housing market slowdown

The average 30-year fixed-rate mortgage in the United States held steady at 7.40% for the week ending October 15, 2026, according to Freddie Mac. This rate remains at its highest level in nearly three years, significantly higher than the 6.27% average recorded one year ago.

The stability in mortgage rates comes amid a slowing housing market. Data from Realtor.com indicates that the share of homes with price reductions reached a four-year high in September, and pending home sales have declined. These conditions may provide homebuyers with increased negotiating power regarding prices and concessions.

New construction activity has also seen a downturn. Mortgage applications for newly built homes fell 8.3% in September compared to the previous year. The Mortgage Bankers Association reported that new single-family home sales dropped to a seasonally adjusted annual rate of 584,000, the slowest pace since April 2020. In response to slower sales, some builders may offer incentives such as mortgage rate buydowns or closing cost assistance to attract buyers.