The Assumable Rate Gap: 2.96% vs 7.40% (October 2026)
Freddie Mac's 30-year average was 7.40% on October 8, 2026, against 2.96% for 2021. That 4.44-point gap is about $819 a month on a $300,000 loan.
The gap in one number
The assumable rate gap is the difference between the rate locked into an existing loan written during the 2020-21 lows and the rate a buyer would get on a new mortgage today.
As of October 8, 2026, the average 30-year fixed rate in Freddie Mac's Primary Mortgage Market Survey was 7.40%. The average for all of 2021 was 2.96%. The gap is 4.44 percentage points.
On a $300,000 balance, that is the difference between about $1,258 and $2,077 a month in principal and interest: roughly $819 a month, or $9,825 a year.
30-year fixed rates by year
Annual figures are simple averages of Freddie Mac's weekly 30-year readings. 2026 runs through October 8.
| Year | Average | Lowest week | Highest week |
|---|---|---|---|
| 2019 | 3.94% | 3.49% | 4.51% |
| 2020 | 3.11% | 2.66% | 3.72% |
| 2021 | 2.96% | 2.65% | 3.18% |
| 2022 | 5.34% | 3.22% | 7.08% |
| 2023 | 6.81% | 6.09% | 7.79% |
| 2024 | 6.72% | 6.08% | 7.22% |
| 2025 | 6.60% | 6.15% | 7.04% |
| 2026 (to Oct 8) | 6.46% | 5.98% | 7.40% |
The lowest weekly reading in the survey's history, which began in 1971, was 2.65% on January 7, 2021. The jump happened inside a single year: 2022 opened near 3.2% and peaked above 7%.
The payment math
Monthly principal and interest on a fixed-rate loan is
M = P × i ÷ (1 − (1 + i)^−n)
where P is the balance, i is the annual rate divided by 12, and n is the number of monthly payments. Using P = $300,000 and n = 360:
| Rate | Monthly principal and interest | Total interest over 30 years |
|---|---|---|
| 2.96% (2021 average) | $1,258 | $153,006 |
| 7.40% (October 8, 2026) | $2,077 | $447,770 |
| Difference | $819 | $294,764 |
These figures exclude property taxes, homeowners insurance, and any mortgage insurance, none of which depend on the interest rate. They also assume the full 30-year schedule, which an assumed loan does not have.
An assumed loan is not a fresh 30 years
A loan written in 2021 has already run about five years. The buyer inherits the remaining term, not a new one, so the payment on a given balance is higher than the 30-year figure suggests.
Carrying the same $300,000 at 2.96% over the 300 months left on a 2021 loan works out to about $1,416 a month. Against $2,077 on a new 30-year loan at 7.40%, the assumption is still about $661 a month cheaper, and it pays the balance off five years sooner. The rate and the remaining term are two separate advantages, and both are worth pricing. Assumable mortgage rates explained covers how to compare listings on both.
What the gap does not tell you
A large rate gap is the reason assumptions are worth the effort, and it is also the reason they are expensive to get into. Sellers who bought in 2020 or 2021 have usually built substantial equity, and the buyer pays that equity in cash. How much cash do I need works through that side of the trade.
The rate also is not the whole payment on every program. FHA loans carry mortgage insurance that transfers with the loan; VA loans do not. And every assumption needs the servicer's approval, covered in how a VA loan assumption works.
About this data
- Source: Freddie Mac Primary Mortgage Market Survey, weekly 30-year fixed-rate average, from Freddie Mac's published historical data file.
- Method: annual figures are simple means of the weekly values in each calendar year, calculated by VAssumable. Payment figures use the standard amortization formula shown above.
- Updated: monthly. Figures current through October 8, 2026.
- Citing this page: "VAssumable, The Assumable Rate Gap (October 2026), using Freddie Mac PMMS data," linking to this page. Please credit Freddie Mac as the source of the underlying rates.
This is educational information, not an offer of credit or a rate quote. Rates on any specific loan are confirmed with its servicer.
Common questions
- What is the assumable rate gap?
- The difference between the interest rate on an existing loan written during the 2020-21 lows and the rate on a new mortgage today. As of October 8, 2026, the 2021 average was 2.96% and the current 30-year average was 7.40%, a gap of 4.44 percentage points, per Freddie Mac's Primary Mortgage Market Survey.
- How much is a 3% mortgage worth compared with today's rates?
- On a $300,000 balance over 30 years, principal and interest is about $1,258 a month at 2.96% and about $2,077 at 7.40%, a difference of about $819 a month or $9,825 a year. Taxes, insurance, and any mortgage insurance are excluded.
- Why compare against 2021?
- 2021 had the lowest annual average in the Freddie Mac survey's history, 2.96%, and the record weekly low of 2.65% in January of that year. Loans written in 2020 and 2021 carry the lowest rates of any assumable loan, which is why they are the ones buyers look for.
- How often is this page updated?
- Monthly, from the latest weekly Freddie Mac survey. The date the figures were last refreshed appears in the About this data section.
Educational information only. This article is general information about how mortgage assumptions work, it is not financial, legal, lending, or tax advice. Loan terms, fees, and rules vary by lender, loan servicer, and state, and can change over time. Confirm the specifics of your situation with the appropriate licensed professionals.