Mortgage Rates Slip as Fed Holds Steady; 30-Year Fixed at 7.14%
Average 30-year mortgage rates fell again on Wednesday, October 28, 2026, as the Federal Reserve closed its October meeting. The central bank held its benchmark rate at 3.75% to 4%, and energy-driven inflation keeps borrowing costs high for households.
Mortgage rates today are trending lower, according to Zillow rates provided to Yahoo Finance for Wednesday, October 28, 2026. The average 30-year fixed purchase rate is 7.14%, down 9 basis points from the day before.
The move came on the day the Federal Reserve wrapped up its October meeting. The Federal Open Market Committee (FOMC) kept the benchmark interest rate in a range between 3.75% and 4%.
Other loan types followed the same direction. The 15-year fixed purchase rate is 6.57%, down 3 basis points from Tuesday. The 5/1 adjustable-rate mortgage (ARM) stands at 7.11%, down 5 basis points.
Refinance rates for the 30-year and 15-year fixed fell 7 and 2 basis points, respectively. The 5/1 ARM refinance rate ticked higher by 3 basis points. The Zillow figures were current as of October 27, 2026, at 2:38 p.m. ET.
A different measure, a similar picture
Fortune, using data from Mortgage Research Center, put the average 30-year fixed conforming rate at 7.206%. That is slightly down from 7.231% in the previous report. The 15-year fixed rate moved the other way, rising to 6.465% from 6.414%.
Jumbo loans averaged 7.480%, down from 7.511%. The 30-year FHA rate was 6.681%, versus 6.692% before. VA loans edged up to 6.768% from 6.743%, while USDA loans fell to 6.998% from 7.110%.
Fortune ran the numbers through the federal government's Office of Financial Readiness calculator. On a $300,000 loan at 7.206% over 30 years, a borrower would pay roughly $433,532.90 in interest. On a 15-year loan at 6.465%, the interest bill would be roughly $169,359.92.
Why the Fed hold matters
The Fed does not set mortgage rates directly. Long-term rates like 30-year mortgages are driven more by inflation expectations and the economic outlook, CNBC reported. Short-term products such as credit cards track the prime rate more closely.
Inflation is the sticking point. Higher energy prices stemming from the Iran war may prove stickier than expected, CNBC said. That could lead Fed Chairman Kevin Warsh and the FOMC to consider raising rates at their December meeting to bring inflation toward the Fed's 2% target.
At its September 15-16 meeting, the committee raised the federal funds rate to 3.75%-4.00%. For households, the combination of persistent inflation and higher borrowing costs is compounding affordability problems, economists said.
Mark Zandi, chief economist at Moody's Analytics, said in an October 12 post that the war has cost the average American household about $2,000 so far, mostly through higher energy costs, on top of heightened interest costs. He said that lower- and middle-income consumers are "increasingly struggling with falling real wages and high rates."
What forecasters expect
The Mortgage Bankers Association (MBA) forecasts the 30-year fixed purchase rate will average 7.3% in the fourth quarter of 2026. Fannie Mae puts it at 7.4%.
For 2027, the MBA expects the 30-year average to range from 7.1% to 7.2%. Fannie Mae predicts 7.5%.
Credit cards show the squeeze clearly. Matt Schulz, LendingTree's chief consumer finance analyst, said card rates have risen for three straight months and are at their highest since December 2025. "Rates are highly likely to rise in the next few months, too, as card issuers implement the Fed's September hike," he said.
