US mortgage rates retreat for third week while holding above 7%

But lower purchase activity shows borrowing costs still prohibitively high for prospective buyers

Published Wed, Nov 4, 2026 · 09:40 PM

The contract rate on a 30-year fixed mortgage declined 7 basis points to 7.3% in the week ended Oct 30, according to Mortgage Bankers Association. PHOTO: REUTERS

US MORTGAGE rates fell for a third straight week, though a decline in purchase activity showed borrowing costs remain prohibitively high for many prospective buyers.

The contract rate on a 30-year fixed mortgage declined 7 basis points to 7.3 per cent in the week ended Oct 30, according to Mortgage Bankers Association (MBA) data released on Wednesday (Nov 4).

Despite the retreat, rates are nearly a full percentage point higher than a year ago and close to the highest since 2023.

The MBA’s purchase index, which measures loan applications to buy homes, fell 2 per cent.

The gauge has declined in eight of the last nine weeks and is close to the lowest since January 2025. A measure of refinancing activity barely rose.

The return of 7 per cent mortgage rates since mid-September has further weakened an already moribund housing market.

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Home price growth cooled off from the pandemic era, when annual increases ran into the double digits, but affordability concerns remain a headwind for buyers.

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An index of contract signings on previously owned homes fell to a record low in September, and residential construction has weighed on economic growth in all but one quarter since the start of 2025. BLOOMERG

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