US Mortgage Rates Fall to 7.32% in October 2026 as Existing-Home Sales Hold Near 4 Million

US mortgage rates fell this week for the first time in weeks. Freddie Mac's 30-year fixed average dropped to 7.32% on October 22, 2026, from 7.40% a week earlier, the highest level since 2023. The relief is small, and it comes as US home sales stay stuck just under 4 million a year.

For our American clients, this is the backdrop to every decision about selling a home in the US and buying one on the island.

The numbers: US mortgage rates and home sales

From Freddie Mac's Primary Mortgage Market Survey, released October 22:

• 30-year fixed: 7.32%, down from 7.40% the week before. A year ago it was 6.19%.

• 15-year fixed: 6.68%, down from 6.71%. A year ago: 5.44%.

From the National Association of Realtors' September existing-home sales report, released October 13:

• Sales pace: 3.99 million a year, seasonally adjusted, up 1.5% from August and down 2.2% from September 2025.

• Median price: $417,500, up 1.3% year on year. That is the 39th straight month of annual gains.

• Inventory: 1.60 million homes, 4.8 months of supply, up from 4.5 months a year ago.

• Northeast: median $523,600, up 4.7%, with sales down 4.1% year on year. The region's affordability fell the most of the four.

• Investors and second-home buyers: 20% of sales, up from 15% in August.

• Cash sales: 27%. Median time on market: 33 days.

The bond market explains the move. The 10-year Treasury yield traded around 5.10% on October 21, below the levels not seen since 2002 that it hit earlier this month. Mortgage rates track that yield closely.

Why it matters

Three things stand out for a US owner thinking about the Caribbean.

Prices are holding, but sales are not. A median price still rising while volume stays near 4 million tells you sellers are not cutting much, and buyers are waiting. NAR's chief economist Lawrence Yun said higher inventory and longer time on market are giving buyers more room to negotiate. If you plan to sell a primary home in New York, New Jersey or Connecticut to fund a purchase here, expect a longer sale than in 2021 or 2022, and price it realistically.

Rates are still high, and the Fed is not done. A Reuters poll of 100 economists taken October 16 to 20 found 94 expect the Federal Reserve to hold at 3.75% to 4.00% on October 28, and all 100 expect a hike in December. CME FedWatch put December hike odds near 83% on October 20. One soft week does not change that path.

Cash and second-home buyers are active. The jump to 20% investor and second-home share in September matters to us. These are the buyers least exposed to US mortgage rates, and they are the same profile that buys a condo in Simpson Bay or a villa in Cupecoy.

Our read

Most of our American buyers do not finance on the island. They pay cash, often from equity in a US home or a portfolio. For them, a 7.32% US mortgage rate matters mainly through the home they are selling: fewer qualified buyers on the other side of their sale, and a longer wait.

The Dutch side prices in US dollars, so there is no currency risk for a US buyer. Closing costs commonly run about 5%, with a 4% transfer tax paid by the buyer. That is the same today as it was at 6% mortgage rates. What changes is timing. If your US sale is likely to take three or four months, start the search here now so you are ready to sign when the funds arrive. Our buyer's guide walks through each step.

This is not financial advice. If you are weighing a sale in the US against a purchase here, our team can talk you through what is on the market and what it costs to own. Contact Andreu Realty.

Sources: Freddie Mac Primary Mortgage Market Survey, October 22, 2026; National Association of Realtors, Existing-Home Sales, October 13, 2026; Reuters poll of economists, October 16–20, 2026; CME FedWatch, October 20, 2026; US Treasury market data, October 21, 2026.