Mitir Patel/Insights/October 26, 2026
Rates dipped to 7.32%. Update your pre-approval.
Mortgage rates eased a little. The average 30-year rate was 7.32% in Freddie Mac's October 22 survey, down from 7.40% the week before. It was the first weekly drop since August.
In dollars, the change is small. On a $400,000 loan, principal and interest comes to about $2,750 a month. That's roughly $20 less than a week earlier, but about $300 more than at last year's rate of 6.19%.
One week's move doesn't make a trend, so it isn't a reason to rush. Fewer sellers are coming to market, too: about 9,000 Chicago-area homes were newly listed in September, around 8% fewer than a year earlier, according to Realtor.com.
If you're shopping, ask your lender to update your pre-approval at the new rate, and settle on a monthly payment you're comfortable with before you fall for a house.
Thinking it over? I'm happy to talk it through.
Where the numbers come from
- 30-year fixed mortgage rate — 7.32%, down from 7.40% prior week; 6.19% a year ago (as of Survey of Oct 22, 2026 (latest release)) · Freddie Mac Primary Mortgage Market Survey
- First weekly drop since August — Weekly rate rose or held every week from Aug 27 (6.66%) through Oct 15 (7.40%); last decline was Aug 20 (6.65%, down from 6.67%) (as of Aug 20 – Oct 22, 2026) · Freddie Mac PMMS via FRED
- Monthly payment illustration, $400,000 loan, 30 years — Computation: principal + interest $2,747.72 at 7.32% vs $2,769.52 at 7.40% (−$21.80) and $2,447.28 at 6.19% (+$300.44). Excludes taxes, insurance, HOA (as of Rates as of Oct 22, 2026) · —
- New listings, Chicago metro (Chicago-Naperville-Elgin) — 8,962 vs 9,716 in September 2025 (both read from the FRED series data download on Oct 26, 2026); computation: −7.8% ("around 8% fewer") (as of September 2026) · Realtor.com Residential Listings Database via FRED
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