The average long-term U.S. mortgage rate fell to 7.18% this week from 7.24% last week, its third straight weekly decline, Freddie Mac said Thursday, Nov. 5. A year ago, the 30-year fixed rate averaged 6.22%, according to the mortgage buyer.
Related: Warsh Cites Faster Growth, High Inflation as Fed Holds at 3.75%–4%.
What the survey showed
The 15-year fixed rate, often used by borrowers refinancing a home loan, fell to 6.57% from 6.60% last week, Freddie Mac said. A year ago, it averaged 5.50%, The Associated Press reported.
The 30-year rate reached 7.4% early last month, its highest level in nearly three years, the AP reported. In late February, it briefly dipped to 5.98%, the AP said.
Why rates moved
Mortgage rates generally follow the 10-year Treasury yield, the AP reported. The yield was at 4.84% at midday Thursday, its lowest level since early September, according to the AP. It had climbed above 5.30% in early October, the AP said.
The rise in mortgage rates since late February followed the start of the U.S. war with Iran, which pushed up oil prices and inflation, the AP reported. The yield remains above its 3.97% level from before the war, according to the AP.
What it costs borrowers
The rise in rates since February has added roughly $300 to $350 to the monthly cost of a $400,000 home loan, the AP reported. Borrowers may qualify for a rate above or below the average, depending on income, credit and other factors, according to the AP.
U.S. home sales have stalled this year, mostly because of elevated mortgage rates, the AP reported.
What it means in Boston
Census Bureau survey data put Boston’s median owner-occupied home value at $722,800, The Boston Report reported in its housing explainer. The city offers up to $50,000 in down payment and closing cost help for eligible first-time buyers, according to the Boston Report’s guide to the program.
What comes next
The Federal Reserve’s next rate decision is due Dec. 9, as tracked on The Boston Report’s Federal Reserve tracker. For more coverage, see the Business News hub.
Sources
- Freddie Mac: Primary Mortgage Market Survey, Nov. 5, 2026
- The Associated Press via WCAX: The average US 30-year mortgage rate falls to 7.18% this week, its third straight decline
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