US Mortgage Rates Hold Steady at 7.4% as Housing Market Struggles

From October 20-22, by the banks of Shanghai's Huangpu River, the 2026 Sustainable Global Leaders Conference returns once again. Nobel Prize and Turing Award winners will take the stage to discuss the future and trends of technology, and the internet-famous professor who "rescues" people from anxiety and the era of involution — Macfarlane — will engage in a live dialogue with Xiang Biao!

Limited seats available, first come first served. Let us embark together on the journey toward sustainability! [Click to register]

US mortgage rates remained unchanged over the past week, offering virtually no relief to a housing market battered by borrowing costs that have returned to 7%. Freddie Mac said in a statement on Thursday that the average rate on a 30-year fixed-rate mortgage held steady at 7.4%. The rate is hovering at its highest level since November 2023. A year ago, it stood at 6.27%.

The surge in borrowing costs has dealt a heavy blow to both buyers and sellers. Mortgage rates broke above 7% last month and have yet to come back down. As housing affordability deteriorates, rising rates are forcing sellers to cut prices while also deterring potential buyers.

Ahead of Freddie Mac's latest report, Bright MLS chief economist Lisa Sturtevant said: "The housing market is expected to slow significantly this autumn. The multiple headwinds of rising mortgage rates, higher inflation and weak consumer confidence will drag market activity down further." Sturtevant said existing-home sales this year could fall below 4 million for the first time since the 1990s.

According to seasonally adjusted data from real estate brokerage Redfin, pending home sales fell 4% month-over-month in September, the largest decline in more than three years, and dropped to the lowest level since 2014 (excluding the early months of the COVID-19 outbreak in 2020).

Although today's borrowing costs remain far below the mortgage rates of over 18% seen in 1981, current rates are already above the 45-year average of 7.16%, while home prices are also at historic highs. Mortgage rates have not declined for eight consecutive weeks, the longest streak since 2021. The 30-year fixed mortgage rate rose 75 basis points in just eight weeks, exceeding the 45 basis point increase during the 2021 episode.