The average US 30-year mortgage rate falls to 7.18% this week, its third
straight decline
[November 06, 2026] By
MATT OTT
WASHINGTON (AP) — The average long-term U.S. mortgage rate fell for the
third straight week, offering some relief to prospective homebuyers
facing higher home prices.
The average 30-year fixed-rate mortgage in the U.S. declined to 7.18%
from 7.24% last week, mortgage buyer Freddie Mac said Thursday. One year
ago, the average rate was 6.22%.
Borrowing costs on 15-year fixed-rate mortgages, often sought by
borrowers refinancing a home loan, also fell again this week. That
average rate dipped to 6.57% from 6.60% last week. A year ago, it was at
5.50%.
Lower mortgage rates relieve some of the pressure on prospective
homebuyers facing higher borrowing costs on home loans.
Rates on home loans are influenced by inflation, Federal Reserve policy
and bond-market investors’ expectations for the economy, among other
factors. They generally follow the trajectory of the 10-year Treasury
yield, which lenders use as a guide to pricing home loans.
Until the past few weeks, mortgage rates had been on the rise since late
February, when the U.S. war with Iran began, pushing up the price of oil
and driving inflation higher. The run-up in rates also reflected
heightened bond market volatility, which led to rising yields on U.S.
Treasurys.
However, the 10-year Treasury yield has been mostly easing for the past
month after climbing to its highest level since 2002. That’s caused the
average rate on a 30-year mortgage to come back down after reaching 7.4%
early last month, its highest level in nearly three years.
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 The yield was at 4.84% at midday on
the bond market Thursday, its lowest level since early September. It
had surged to more than 5.30% in early October and remains well
above its 3.97% level from before the war with Iran.
U.S. home sales remain stalled this year mostly due to elevated
mortgage rates, which can add hundreds of dollars a month in costs
for borrowers, limiting homebuyers’ purchasing power and prompting
many to put off buying a home.
In late February, the average rate on a 30-year mortgage briefly
dipped to 5.98%, its lowest level going back to late 2022. The rise
in rates since then has added roughly $300 to $350 to the monthly
cost for a borrower financing a $400,000 home loan.
Depending on a borrower’s income, credit and other factors, they may
qualify for a rate on a 30-year mortgage that is below or above the
current average.
The U.S. housing market has been in a slump since 2022, when
mortgage rates began to climb from pandemic-era lows. Sales of
previously occupied U.S. homes were essentially flat last year,
stuck at a 30-year low.
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