The average 30-year fixed mortgage rate fell to 7.32% as of Oct. 22, down from 7.40% a week earlier, according to Freddie Mac's weekly survey.

Why it matters: Rates are still more than a full point higher than a year ago, when the 30-year averaged 6.19%. In the Bay Area, where home prices are high, that gap adds a lot to monthly payments.

The numbers

  • 30-year fixed: 7.32%, down from 7.40% last week. A year ago: 6.19%.
  • 15-year fixed: 6.68%, down from 6.71%. A year ago: 5.44%.

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

What the survey measures

The survey averages rates on conventional, conforming home-purchase loans for buyers with excellent credit who put 20% down. Freddie Mac collects the data from thousands of loan applications. Many Bay Area buyers need jumbo loans, which are larger than the conforming limit, so they may see different rates.

What's next

The Federal Reserve announces its next rate decision on Wednesday, Oct. 28. Freddie Mac's next survey comes out Thursday, Oct. 29, at 9 a.m. PT.

Sources: Freddie Mac.