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# Mortgage rates just hit 7.40%. Here's what that does to a $400,000 loan.
- URL: https://ghost-production-6d8e.up.railway.app/mortgage-rates-just-hit-7-40-heres-what-that-does-to-a-400-000-loan/
- Published: 2026-10-11T07:19:25.000Z
- Updated: 2026-10-11T07:19:25.000Z
- Description: The 30-year average is more than a point above last year. On a $400,000 loan, that's about $294 more a month.
- Author: Hirab Shabi
- Tags: Real Estate

The average 30-year fixed mortgage rate rose to **7.40%** this week, from 7.28% a week earlier and 6.30% a year ago, according to Freddie Mac's weekly survey published October 8\. The 15-year average rose to 6.73%, from 5.53% a year ago.

## Why it matters

Rate moves hit the monthly payment directly. On a $400,000, 30-year loan, principal and interest come to about **$2,770 a month** at 7.40%, compared with about $2,476 at last year's 6.30%. That's roughly $294 more a month, or about $3,500 a year, before taxes and insurance.

## Over the life of the loan

Total interest at 7.40% comes to about $597,000, compared with about $491,000 at 6.30%. That's more than $100,000 extra for the same house.

## For rental buyers

Every extra dollar of mortgage payment has to come out of rent. A rental that just broke even on a $400,000 loan at last year's rate now needs about $294 more in monthly rent, or a bigger down payment, to cover the same loan.

## What you can control

- **Shop lenders.** Freddie Mac's chief economist, Sam Khater, says getting multiple quotes can potentially save borrowers thousands over the life of a loan.
- **Price a 15-year loan.** The rate is lower, at 6.73%, but the payment on $400,000 is about $3,535 a month.
- **Use your own quote, not the average.** Freddie Mac's survey tracks borrowers with good to excellent credit who put 20% down, so many buyers will be quoted more.

*Payments are principal and interest only, rounded. This is information, not financial advice.*

### Sources

- [Freddie Mac: Mortgage Rates Average 7.40% (October 8, 2026)](https://www.globenewswire.com/news-release/2026/10/08/3377537/0/en/mortgage-rates-average-7-40.html?ref=ghost-production-6d8e.up.railway.app)
- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms?ref=ghost-production-6d8e.up.railway.app)