Mortgage Rates Fall to 7.32% as PulteGroup, NVR Report Weaker Orders

The average rate on a 30-year fixed U.S. mortgage fell to 7.32% this week, according to Freddie Mac's Primary Mortgage Market Survey released on Thursday, October 22, 2026. The decline came on the same day two of the country's largest homebuilders, PulteGroup and NVR, reported third-quarter results showing fewer new orders and lower profits than a year earlier, with both companies pointing to affordability pressure on buyers.

First weekly decline since August

The 30-year fixed-rate mortgage averaged 7.32% as of October 22, down from 7.40% the previous week, Freddie Mac said. A year ago the average stood at 6.19%. The 15-year fixed-rate mortgage, often used by borrowers who refinance, averaged 6.68%, down from 6.71% a week earlier and up from 5.44% a year ago.

"The average 30-year fixed-rate mortgage declined this week, offering some relief to prospective homebuyers," Sam Khater, Freddie Mac's chief economist, said in the company's release.

The drop is the first weekly decrease since August 20, according to Freddie Mac's historical series published by the Federal Reserve Bank of St. Louis. The 30-year average had climbed from 6.65% in late August to 7.40% on October 8 and held at that level on October 15. That 7.40% reading was the highest since the week of November 16, 2023, when the average was 7.44%, the same data show.

Freddie Mac's survey reflects conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit. Results are published each Thursday at noon Eastern time and average rates on applications submitted from the prior Thursday through Wednesday.

PulteGroup orders fall 6%

Atlanta-based PulteGroup reported third-quarter net income of $476 million, or $2.53 per share, compared with $586 million, or $2.96 per share, a year earlier. Home sale revenues fell 9% to $3.9 billion, reflecting a 9% decline in closings to 6,876 homes and a 1% decrease in the average sales price of homes closed to $561,000.

Net new orders totaled 6,208 homes, down 6% from 6,638 in the prior-year quarter, with a value of $3.5 billion compared with $3.6 billion. The company's average community count rose 7% to 1,077. Home sale gross margin was 24.8%, down from 26.2%, and included about $26 million of land impairments. Backlog at the end of September stood at 10,298 homes valued at $6.4 billion, compared with 9,888 homes valued at $6.2 billion a year earlier.

"The rapid increase in interest rates has stretched affordability even further, made selling an existing home even harder, and has pushed even more consumers to the sidelines," President and Chief Executive Ryan Marshall said in the release. He said more than 60% of the company's business now comes from move-up and active-adult buyers.

PulteGroup repurchased 2.8 million shares for $350 million during the quarter and ended September with $1.4 billion in cash and a debt-to-capital ratio of 12%.

NVR profit drops 27%

Reston, Virginia-based NVR, which builds under the Ryan Homes, NVHomes and Heartland Homes names, reported third-quarter net income of $248.6 million, or $89.45 per diluted share, down 27% and 20%, respectively, from $342.7 million, or $112.33 per share, a year earlier. Consolidated revenues were $2.40 billion, compared with $2.61 billion.

New orders fell 7% to 4,391 units, and the average sales price of new orders decreased 5% to $442,100. The cancellation rate rose to 21% from 19%. Settlements declined 7% to 5,268 units at an average price of $445,900, down 2%. NVR's backlog of homes sold but not yet settled rose 10% to 10,121 units, worth $4.59 billion.

Homebuilding gross profit margin narrowed to 18.3% from 21.0%. The company said margins were hurt by higher lot costs, "pricing pressure due to continued affordability challenges and weak consumer sentiment," and contract land deposit impairments of about $24.8 million. Mortgage closed loan production fell 10% to $1.38 billion, while pre-tax income from mortgage banking rose 7% to $35.0 million.

What the figures show

Both builders reported larger backlogs than a year earlier even as quarterly orders declined, and both recorded land-related impairment charges. The week-to-week dip in Freddie Mac's average still leaves the 30-year rate more than a full percentage point above its level of a year ago. Freddie Mac's next weekly survey is scheduled for Thursday, October 29.