Mitir Patel/Insights/October 12, 2026
Rates hit 7.40%. More sellers are cutting prices.
Mortgage rates rose again. The average 30-year rate was 7.40% in Freddie Mac's October 8 survey, up from 7.28% the week before and 6.30% a year ago.
On a $400,000 loan, that works out to about $2,770 a month for principal and interest. That's roughly $294 more than at last year's rate.
There is some good news for buyers. In September, 5,720 homes for sale in the Chicago metro area had a price cut, more than a third of all listings and up from August, according to Realtor.com. Some sellers are open to negotiating.
If you're shopping, don't assume the asking price is the final price. Update your pre-approval at today's rate, know the most you're willing to pay each month, and offer within it. If nothing fits yet, waiting is fine.
Want help working out what a fair offer looks like? I'm happy to talk it through.
Where the numbers come from
- 30-year fixed mortgage rate — 7.40% (prior week 7.28%, year ago 6.30%) (as of Survey of Oct 8, 2026 (latest release)) · Freddie Mac Primary Mortgage Market Survey
- Monthly payment illustration, $400,000 loan, 30 years — Computation: principal + interest $2,769.52 at 7.40% vs $2,475.89 at 6.30% (+$293.63). Excludes taxes, insurance, HOA (as of Rates as of Oct 8, 2026) · —
- Listings with a price reduction, Chicago metro (Chicago-Naperville-Elgin) — 5,720, up from 5,244 in August 2026 (as of September 2026) · Realtor.com Residential Listings Database via FRED
- Homes listed for sale, Chicago metro (share with a price cut) — 15,929 active listings; computation: 5,720 ÷ 15,929 = 35.9% ("more than a third") (as of September 2026) · Realtor.com Residential Listings Database via FRED
Thinking about buying or selling in Chicago?
These notes are the plain-language version of what I watch every week. If you want it applied to your own budget, your block, or your building, send a note — no pressure and no pitch.
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