Mortgage Rates Dip for the First Time in Two Months 👉 What It Means for You as a buyer in Boise, Meridian, Eagle or any city in the Treasure Valley of Idaho.

Written By Powell Group

After two straight months of climbing, mortgage rates finally took a small step back this week. The average 30-year fixed rate slipped to 7.32%, according to Freddie Mac — welcome news, but not quite the relief many buyers have been hoping for.

Rates are still above 7%, home sales are cooling, and economists expect borrowing costs to tick higher before they come down. Here's what's happening and what it could mean if you're planning to buy or sell a home in Boise, Meridian or Eagle Idaho.

This week's rates at a glance

Both of the most popular loan types eased slightly from last week, though each remains well above where it stood a year ago.

Weekly averages from Freddie Mac, week ending Oct. 22, 2026.
Loan type This week Last week A year ago
30-year fixed 7.32% 7.40% 6.19%
15-year fixed 6.68% 6.71% 5.44%

Weekly averages from Freddie Mac, week ending Oct. 22, 2026.

Daily rate trackers, which tend to swing more than weekly averages, also moved lower on Thursday. Mortgage News Daily put the 30-year fixed at 7.36% and the 15-year fixed at 7%.

Higher rates are slowing home sales

This is the fifth week in a row that the average 30-year rate has stayed above 7%, and the effect is showing up in sales activity.

  • Pending sales hit a record low for September. The National Association of Realtors reported that signed contracts fell to their lowest September level since it began tracking the figure in 2001. Contracts dropped 7.3% from August and 11.3% from a year earlier. Because contracts usually close one to two months later, this points to a slower stretch ahead.

  • Closed sales are down, but choices are up. Homes.com data showed home sales fell 6% in September while the number of homes for sale rose 1.9%.

NAR Chief Economist Lawrence Yun tied the slowdown directly to borrowing costs. In his view, buyers now have more homes to choose from and more room to negotiate, but higher rates are keeping many on the sidelines. As he put it, affordability is "more affected by changes in mortgage rates" than by job or income growth.

Where rates may be headed next

Don't count on this week's dip turning into a trend. Fannie Mae sharply raised its rate outlook in its October housing report, and now expects the 30-year fixed to average 7.4% for the rest of 2026 and 7.5% in 2027.

Fannie Mae forecasts for the average 30-year fixed mortgage rate.
Forecast date Q4 2026 2027 average
October 2026 outlook 7.4% 7.5%
September 2026 outlook 6.8% 6.7%
Before late February 2026 6.0% 6.0%

The biggest driver is inflation. September saw prices rise at their fastest monthly pace since April, adding to expectations that the Federal Reserve will keep raising interest rates. The Fed doesn't set mortgage rates directly, but lenders and investors react to its signals, and that tends to push home loan costs higher too. Homes.com chief residential economist Brad Case has said that higher rates will be needed to bring inflation under control.

What this means for you

If you're buying: Waiting for rates to fall may mean waiting a while. The upside is that fewer buyers and more listings can give you stronger negotiating power on price, repairs and seller credits. It's worth getting pre-approved now and asking your lender about options like rate buydowns or adjustable-rate loans.

If you're selling: Buyers are more payment-sensitive than they were a year ago. Pricing right from day one, presenting your home well and being open to concessions can help you stand out as inventory grows.

Every market moves a little differently. If you'd like to talk through how today's rates affect your plans, reach out to our team — we're happy to help.

Sources:

Powell Group
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