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The 30-year fixed averaged 7.40% this week, up from 7.28%, according to Freddie Mac's October 8 survey. The 15-year rose to 6.73% from 6.60%. A year ago those averages were 6.30% and 5.53%. That makes seven straight weekly increases, and the 30-year is now at its highest level since November 2023.
On a $350,000 loan, this week's move is about $28 a month in principal and interest, roughly $2,423 now versus $2,395 last week. Against a year ago, the gap is about $257 a month. The number almost nobody quotes is the spread between two lenders on the same day, and that's the one I want to talk about.
Freddie Mac's own chief economist used this week's release to remind borrowers that shopping around and getting multiple quotes can save thousands over the life of a loan. I'd put it more bluntly. In a week like this, the difference between a careful lender comparison and a single quote from whoever answered first can easily be larger than the week's rate move. A quarter point between two lenders on $350,000 is about $59 a month, every month, for as long as you hold the loan.
So here is how I'd do it. Get at least three written Loan Estimates on the same day, for the same loan amount, the same loan type, and the same lock period. Rates move daily, so quotes gathered a week apart don't tell you anything about the lenders. Compare the interest rate and the lender fees together, because a lower rate with a point or two of origination cost is not automatically the better deal. Ask each lender what the lock period is and what a float-down would cost. Then pick the one whose numbers and communication you trust.
The usual caveat, and I mean it: these are national averages for borrowers with strong credit and 20% down. I'm a real estate broker and REALTOR®, not a lender. Your credit, loan type, and down payment all move the number, so get a real quote before you plan around it.
Rates at a three-year high are not a reason to rush, and they're not a reason to freeze either. Sellers in the Houston area are negotiating more than they did a year ago, and a buyer who has done the lender homework walks into those negotiations knowing exactly what each dollar of price means to the monthly payment. That's a stronger position than waiting for a Thursday that may or may not come.
If you're weighing a move anywhere in the Houston area, I'm glad to talk it through with no obligation. Reach me, Kevan Pewitt, at Houston Prime Realty. Call or text (281) 500-7077.
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