Freddie Mac says 30-year mortgage rates cool to 7.24%
Freddie Mac, the government-backed mortgage company, reports 30-year fixed rates dipped to 7.24% on Oct. 29.
The short version
- The 15-year fixed rate averaged 6.60%.
- If you are buying a home or refinancing, check your credit score and pay down debts before applying to secure the lowest rate.
Freddie Mac, the government-backed mortgage company, reports that the average 30-year fixed mortgage rate cooled to 7.24% for the week ending Oct. 29, according to CNBC. That figure dropped from 7.40% earlier in the month, providing a slight pause in a volatile market.
The 15-year fixed mortgage rate averaged 6.60% for the same week. Rates rose significantly earlier this year following the start of the conflict in Iran and subsequent oil price spikes, stymying buyer demand across the housing market. Economists note that lenders determine individual rates based on broader economic factors like the 10-year Treasury yield, as well as personal financial profiles.
Your credit score, debt-to-income ratio, and the size of your down payment directly dictate the rate a lender quotes you. Experian data shows your quoted rate can swing by more than half a point depending on whether you hold a 620 or an 840 credit score.
Putting down at least 20% on a purchase also helps you avoid paying extra for private mortgage insurance. For a $400,000 30-year loan, a rate of 7.24% results in a monthly principal and interest payment of $2,725.99. Taking steps to strengthen your financial standing before approaching a lender remains the most effective way to offset high market rates.
