US Mortgage Rates Dip to 7.32% as 10-Year Treasury Yield Pauses Near 5.13%

3 articles · Updated · Realtor.com News · Oct 26

Freddie Mac said the average 30-year mortgage rate fell to 7.32% in the week ended Oct. 22 from 7.40%, the first decline in two months after seven straight weekly increases.
The pullback followed a pause in Treasury selling, with the 10-year yield easing to about 5.13% from 5.24% as investors turned defensive over the Iran conflict and awaited new unemployment claims.
That has reduced immediate fears of mortgage rates hitting 8%, but borrowing costs remain near three-year highs and persistent inflation is still pressuring homebuyers.
For savers still building a down payment, the same rate backdrop has lifted returns on high-yield savings accounts, money-market funds and short-term Treasurys to roughly 3.5% to 5%.
Treasurys can offer predictable returns for buyers with a clear timeline, while those actively house-hunting may prefer more liquid savings options because selling T-bills early can expose them to market volatility.