Are mortgage rates going down? They've eased for two weeks in a row. The average 30-year fixed rate dipped to 7.37% for the week ending Oct. 23, according to the Mortgage Bankers Association, and mortgage applications rose as a result.
Rates finally gave buyers a little breathing room. For the second week in a row, mortgage rates came down, and buyers noticed.
What the Latest Numbers Show
According to Realtor.com, citing the Mortgage Bankers Association's weekly survey for the week ending Oct. 23:
Total mortgage applications rose about 3% from the week before.
Purchase applications rose 4% week over week, but are still down 18% from a year ago.
The average 30-year fixed rate dipped to 7.37%, down from 7.41%, the lowest in three weeks.
Freddie Mac's weekly survey showed a similar move, with rates falling to 7.32% from 7.4%.
MBA Deputy Chief Economist Joel Kan noted that the lower rates brought some relief, especially for conventional loan applications. He also pointed out that rates are still more than a full percentage point higher than this time last year, and most homeowners have rates well below today's.
More Buyers Are Choosing ARMs
With fixed rates still above 7%, more buyers are turning to adjustable-rate mortgages. ARM rates are running nearly a full percentage point below the 30-year fixed, and the ARM share of applications rose from 10.5% to 11.3%, the highest in more than a year.
An ARM can lower your starting payment, but your rate can change after the fixed period ends. Talk to your lender about how the numbers work for your plans.
Loan Types and Refinancing
A few other details from the report:
FHA applications made up 16.6% of the total, up from 16.3%.
VA applications slipped to 11% from 11.5%. In San Diego County, with so many military families, VA loans remain an important option.
Refinance activity rose 3% for the week, but is still 61% lower than a year ago. Most homeowners are holding on to the low rates they already have.
What's Next: The Fed Meets This Week
The Federal Reserve raised rates in September and is meeting again this week. Policymakers are widely expected to hold rates steady this time.
Remember, the Fed doesn't set mortgage rates directly. The 30-year mortgage rate tends to follow the 10-year Treasury yield, because most 30-year loans are paid off or refinanced within about eight to 11 years. Lenders use that yield as a benchmark and add a risk premium. Treasury yields move with investor demand and expectations for inflation.
Your own rate also depends on your credit score, loan type, and loan length.
What This Means for You
Buyers: A small rate drop can make a real difference in your monthly payment, especially at San Diego price points. Get pre-approved, know your budget, and be ready to lock when the numbers work.
Sellers: More buyers are applying when rates ease. Price for today's market, and make sure your home's location, condition, and price give buyers a reason to choose yours.
Frequently Asked Questions
What is the current mortgage rate?
For the week ending Oct. 23, the MBA reported an average 30-year fixed rate of 7.37%. Freddie Mac reported 7.32%. Rates change weekly, so check with your lender for today's rate.
Why are more buyers choosing adjustable-rate mortgages?
ARM rates are running nearly a full percentage point below fixed rates, which lowers the starting payment. The rate can change after the fixed period.
Will the Fed lower rates at this week's meeting?
Policymakers are widely expected to hold rates steady. Mortgage rates follow the 10-year Treasury yield more closely than the Fed's rate.
Let's Talk About Your Plans
Rates are moving, and buyers are paying attention. If you're thinking about buying or selling in San Diego County, call or text me and let's talk about what today's rates mean for you.
Billie Bourgeois | REALTOR® Real Broker | San Diego County, CA DRE# 01703336
Source: Realtor.com, Oct. 28, 2026
