What the October 28 Fed Decision Means for Your Payment

If you've been looking at homes in Mobile or Baldwin County this fall, you've probably checked mortgage rates more often than you'd like to admit. Back in mid-October I wrote about the October 14 inflation report and how it raised the odds of another Fed increase. This is the follow-up.

What happened on October 28

The Federal Reserve left its benchmark rate where it was, at 3.75% to 4%. The vote was 10 to 2, and both officials who disagreed wanted a quarter-point increase. Inflation is still running warm. Consumer prices were up 3.7% from a year earlier in September, with gasoline doing a lot of the pushing.

So there was no cut. But the increase a lot of people were bracing for didn't happen either, and mortgage rates kept drifting down that week.

Where mortgage rates landed that week

Freddie Mac's weekly survey on October 29 put the average 30-year fixed rate at 7.24%, the lowest reading of the month.

• 30-year fixed: 7.24%, down from 7.32% on October 22 and 7.40% on October 15
• 15-year fixed: 6.60%, down from 6.68% the week before
• One year ago, the 30-year averaged 6.17%

Source: Freddie Mac Primary Mortgage Market Survey, October 29, 2026.

What that looks like on a real payment

On a $250,000 loan, principal and interest at 7.40% comes to about $1,731 a month. At 7.24%, it's about $1,704. That's roughly $27 a month, before taxes and insurance. (That's my math, so check it against your own lender's numbers.)

I'm sharing that so it stays in proportion. Two better weeks are welcome, and if you locked recently, I'm glad for you. But the same loan still costs about $205 more a month than it would have at last year's rate. For most buyers right now, the purchase price and what a seller will put toward closing costs make a bigger difference than a tenth of a point. If you haven't looked into down payment assistance yet, start with the AHFA programs I wrote about in October.

What to watch before December 9

The Fed meets again December 8 and 9. With two officials already voting for an increase, a December hike is a real possibility, and rates can move on the next inflation report well before that meeting. I can't promise which way it goes, and I'd be careful with anyone who says they can.

A few things worth doing now:

• If you're in an agreement with a homecoming in the next 30 to 45 days, talk with your lender about locking rather than waiting on December.
• If you're still shopping, get a quote from at least two lenders. They don't all price the same loan the same way on the same day.
• When you make an offer, ask about a seller-paid rate buydown or closing cost help. Redfin's September figures show homes in both counties selling for around 97% of list price, so there's often room for that conversation.
• If your pre-approval letter is more than a couple of months old, ask for an updated one so your offer reflects today's rate.

If you'd like to sit down and run your own numbers, our team at Perch & Oak Property Group with Keller Williams Mobile is glad to do that with you. There's no pressure to do anything but learn where you stand. Reach out here whenever you're ready.

Rates and Fed policy change quickly. These figures are general information as of October 29, 2026, not financial advice. Confirm current rates and your options with a licensed lender.

Be Home.
Leslie Davis, AL License #72650
Perch & Oak Property Group