The average rate on a 30-year fixed mortgage fell to 7.24% this week from 7.32% a week earlier, the lowest level this month, according to Freddie Mac's weekly survey released Thursday, October 29. The 15-year fixed rate dropped to 6.60% from 6.68%.
Rates are still more than a full percentage point above where they were a year ago, when the 30-year averaged 6.17% and the 15-year 5.41%.
What the change means for a monthly payment
Principal and interest on a 30-year fixed loan, before taxes, insurance and any mortgage insurance:
| Loan amount | At 7.24% (this week) | At 7.32% (last week) | At 6.17% (a year ago) |
|---|---|---|---|
| $300,000 | $2,044 | $2,061 | $1,832 |
| $400,000 | $2,726 | $2,748 | $2,442 |
This week's dip saves about $16 to $22 a month on those loans compared with last week's rate. Against a year ago, the same loans cost about $213 to $284 more each month.
On a 15-year loan at 6.60%, the monthly principal and interest is about $2,630 for $300,000 and $3,506 for $400,000.
Behind the numbers
Freddie Mac's figures come from rates lenders offer on loan applications submitted through its system, averaged from the prior Thursday through Wednesday. The rate a given borrower is offered can differ, so the weekly average is a benchmark for comparison.
The decline came the same week the Federal Reserve held its benchmark rate in a range of 3.75% to 4% on October 28, after raising it in September. Edit USA's coverage of that decision has the vote and the dissents.
Freddie Mac publishes the next survey on Thursday, November 5.
