Mortgage rates fall for second straight week to 7.24% but stay elevated as inflation persists

The average interest rate on a 30-year fixed mortgage fell to 7.24%, down from 7.4% two weeks earlier, Freddie Mac data released Thursday showed. Rates remain more than a percentage point above pre-war levels and above 7% for the first time since January 2025. The 10-year Treasury yield hit its highest level in nearly two decades in September, days after the Federal Reserve raised benchmark borrowing costs. Fed Chair Kevin Warsh said financial and credit conditions have tightened for some businesses and households "much as we would expect." Consumer prices rose 3.7% annually in September, well above the Fed's 2% target. Markets peg the odds of a quarter-point hike at the December meeting at about 85%, according to CME Group's FedWatch Tool. Elevated rates have fueled a "lock-in" effect, deterring homeowners from listing properties.