Mortgage Rates Hit 7.40% as Buyers Gain Ground in 66% of Metros
Austin, Texas – October 19, 2026 -- Mortgage rates climbed 74 basis points in just over a month, from 6.66% in late August to 7.40% on October 8, cutting purchasing power by 7.2% for a buyer with a $2,000 monthly principal-and-interest budget, according to the Realtor.com Market Clock report.
That shift removes more than $22,000 from the home price such a buyer can afford. The national Market Clock reading moved to 4 o'clock, described as late balanced and loosening toward buyers, from 3 o'clock last quarter. About two-thirds of metros now favor buyers outright or are moving in that direction.
Seller's markets fall from 39 to 27 in one year
Of the 99 metros tracked, 27 are seller's markets, 49 are balanced and loosening, 17 are buyer's markets and six are balanced and tightening. No quadrant holds a majority. Over the past year, buyer's markets rose from 13 to 17.