Here is this week’s US mortgage news roundup from Kala Lending, LLC. After a run that pushed borrowing costs to their highest level in nearly three years, mortgage rates finally took a small step back: Freddie Mac reports the 30-year fixed-rate mortgage averaged 7.32% on October 22, down from 7.40% a week earlier. Buyer demand is still soft, the Federal Reserve meets October 27–28, and a new executive order is aimed at mortgage insurance and refinance costs. Here is what it all means for homebuyers, homeowners and real estate investors.
US Mortgage News: Rates Ease From a Near-Three-Year High
Freddie Mac’s Primary Mortgage Market Survey showed the 30-year fixed at 7.32% and the 15-year fixed at 6.68%, down from 6.71% a week earlier. A year ago those averages were 6.19% and 5.44%. The 30-year rate crossed 7% on September 24 and then held at 7.40% for two straight weeks in October, its highest level since November 2023.
The pullback is small but real. On a $300,000 loan, 7.32% versus 7.40% works out to roughly $16 less per month in principal and interest (about $2,061 versus $2,077). Compared with a year ago, though, the same loan costs roughly $225 more per month (our estimate).
Mortgage Demand Stays Weak Despite the Dip
Lower rates have not yet brought buyers back. The Mortgage Bankers Association reported that total applications fell 5.3% for the week ending October 16. Purchase applications dropped 7% on the week and sat 18% below last year, while refinance applications slipped 2% and remained 59% lower than a year ago. Adjustable-rate loans made up 10.5% of applications, a sign that more borrowers are looking for lower starting payments. MBA economist Joel Kan said the higher-rate environment has clearly cooled the housing market this fall.
Other data points tell a similar story:
- Existing-home sales: The National Association of Realtors said September sales rose 1.5% from August to a 3.99 million annual pace, but were 2.2% below a year earlier. The median price was $417,500, up 1.3% year over year and the 39th straight month of annual gains. Inventory reached 1.60 million homes, a 4.8-month supply.
- Construction: Housing starts fell 5.2% in September to a 1.221 million annual rate, about 7.4% below last year, while building permits edged down 0.2% to 1.400 million.
Fed Meeting and Treasury Yields: What to Watch Next
The Federal Reserve meets October 27–28, with the decision due Wednesday, October 28. Markets broadly expect the Fed to hold rates steady after its September increase, though many forecasters still see another hike possible in December. The Fed does not set mortgage rates directly. Mortgage pricing tends to follow the 10-year Treasury yield, which closed at 5.31% on October 5, its highest close since 2002, and has since cooled to roughly 5.00%.
Because a hold is already priced in, the Fed’s comments on inflation and the rate path may move the bond market more than the decision itself. Freddie Mac’s next weekly reading arrives Thursday, October 29.
Housing Executive Order and FHFA Moves Target Closing Costs
On October 22, President Trump signed an executive order titled “Decreasing Housing Costs for the American People,” according to the White House fact sheet. Key directions include:
- An FHFA pilot to proactively cancel mortgage insurance on eligible future loans once borrowers reach an equity threshold.
- Making the FHFA title insurance waiver pilot permanent, giving more refinance borrowers lower-cost alternatives to a lender’s title policy.
- A manufactured housing task force and lower rates on certain USDA and VA direct loans.
Separately, FHFA Director Bill Pulte said the agency is considering requiring only one or two credit reports, instead of three, for loans sold to Fannie Mae and Freddie Mac, and expects a decision on loan-level price adjustments before year-end.
Keep expectations realistic: these measures focus on agency and government-backed loans, several are pilots or still need implementation details, and none directly lowers the interest rate you are quoted today.
What This Week’s US Mortgage News Means for Investors and Borrowers
Higher rates reward careful planning. If you invest in rental property, a DSCR loan lets you qualify using the property’s rental income instead of personal income, and Kala Lending also offers DSCR purchase loans for new acquisitions. Owners with equity can compare a cash-out refinance with a rate and term refinance to see which fits their goals and payment budget.
Short-term projects work differently. Bridge loans, fix and flip loans and new construction loans are built for rehab and build timelines, which matters as builders pull back and inventory stays tight. You can browse every option on our services page or use the payment calculator on our homepage to test different loan amounts before you apply.
Key Dates for the Week Ahead
- Tuesday–Wednesday, Oct. 27–28: Federal Reserve meeting; decision on Oct. 28.
- Thursday, Oct. 29: Freddie Mac weekly mortgage rate survey.
- Tuesday, Nov. 3: Election Day, with housing affordability a central campaign theme.
The Bottom Line
This week’s US mortgage news is cautiously better on rates but still tough on affordability. Rates eased from their peak, yet purchase demand, home construction and refinancing all remain well below last year. Watch the Fed and Treasury yields, and make decisions based on your own numbers rather than headlines. When you are ready to talk through DSCR, bridge or refinance options, contact the Kala Lending team or start your application. For more updates, visit the Kala Lending blog.
Disclaimer: This article is for general information only and is not financial, legal or tax advice. Freddie Mac and MBA figures are national survey averages, not Kala Lending rate quotes. Rates, terms and eligibility vary by borrower, property and loan program and are subject to change. Kala Lending, LLC does not guarantee any specific rate or approval.