U.S. mortgage rates declined to 7.18% on November 5, 2026, marking a third consecutive weekly drop in Freddie Mac’s 30-year fixed-rate average. However, mortgage applications and pending home sales remain weak. Recent data from Freddie Mac, the Mortgage Bankers Association and Zillow highlight the continuing affordability challenges facing American homebuyers.
The decline follows several weeks of elevated borrowing costs that pushed the 30-year benchmark to 7.40% in mid-October. Although rates have eased, the latest average remains nearly one percentage point higher than a year earlier.
The difference matters for prospective buyers evaluating monthly payments. Lower financing rates can reduce borrowing expenses, but recent housing data indicate that purchasing activity has not recovered alongside the weekly declines.
Key Takeaways
- Freddie Mac reported a 30-year fixed mortgage rate of 7.18% on November 5, down from 7.24% the previous week
- The 15-year fixed mortgage rate declined to 6.57%, compared with 5.50% a year earlier
- Mortgage applications decreased 1.2% during the week ending October 30, according to the Mortgage Bankers Association
- Zillow reported a 16.8% annual decline in newly pending home listings in October
- Estimated monthly mortgage payments on a typically valued home were 12.8% higher than a year earlier
Mortgage Rates Fall for Three Weeks but Remain Historically Elevated
Freddie Mac’s November 5 Primary Mortgage Market Survey recorded the average 30-year fixed mortgage rate at 7.18%, down from 7.24% on October 29 and 7.32% on October 22.
The benchmark stood at 7.40% on October 15, meaning rates have fallen by 0.22 percentage points over three consecutive weeks. Despite that improvement, the current average remains above the 6.22% recorded during the same period in 2025.
The average 15-year fixed mortgage rate also declined, reaching 6.57% from 6.60% the previous week. A year earlier, the rate averaged 5.50%, indicating that shorter-term financing also remains considerably more expensive than in 2025.
“Mortgage rates continued their downward trajectory this week, improving the environment for prospective homebuyers against a backdrop of strong economic growth,” said Sam Khater, Freddie Mac’s chief economist, in the November 5 announcement.
Freddie Mac’s survey focuses on conventional, conforming home purchase loans for borrowers with excellent credit and a 20% down payment. Its national averages are based on mortgage applications submitted through the organization’s Loan Product Advisor system.
Individual borrowing rates may differ depending on credit scores, down payments, loan terms and lender pricing. The national benchmark provides an indication of overall lending conditions rather than a rate available to every applicant.
Mortgage Applications Decline Despite Lower Borrowing Rates
The latest mortgage application figures show that declining borrowing rates have not been accompanied by an immediate increase in demand.
The Mortgage Bankers Association reported on November 4 that its Market Composite Index, which measures mortgage application activity, decreased 1.2% during the week ending October 30.
Purchase applications declined 2% on a seasonally adjusted basis. Unadjusted purchase activity was 19% below the corresponding week in 2025, indicating that demand remained weaker than a year earlier.
Refinancing activity showed similarly limited movement. The association’s Refinance Index increased just 0.1% from the previous week and remained 60% below its year-earlier level.
The association’s separate survey placed the average contract rate for conforming 30-year fixed mortgages at 7.30%, down from 7.37%. Its reading differs from Freddie Mac’s 7.18% because the surveys use different samples and measurement periods.
The figures follow September’s pending home sales, which declined 7.3% from August and 11.3% from September 2025, according to the National Association of Realtors.
Those earlier contract figures provide additional context for the slowdown but do not establish how buyers responded to the November 5 mortgage rate announcement.
Meanwhile, adjustable-rate mortgages accounted for 11.4% of total mortgage applications in the latest MBA survey. These loans typically offer an initial fixed-rate period before the interest rate can adjust according to the loan’s terms.
The higher adjustable-rate mortgage share suggests that some borrowers are considering alternatives to traditional fixed-rate financing. However, the possibility of future payment changes remains an important distinction between the two loan structures.
Housing Affordability Remains a Challenge Despite Rising Inventory
October housing market figures provide further context for the limited response to recent mortgage rate declines.
According to Zillow’s November 5 market report, newly pending home listings fell 16.8% from a year earlier, representing the largest annual decline since August 2023.
The company’s preliminary estimate of existing-home sales also showed an 8.7% annual decline. These figures describe activity during October, before Freddie Mac reported the latest weekly borrowing rate reduction.
At the same time, the typical U.S. home value stood at $364,812, according to the Zillow Home Value Index. That represented a 0.7% annual increase but a 0.6% decline from September.
Zillow estimated that the monthly principal-and-interest mortgage payment on a typically valued home reached $2,004 in October, assuming a 20% down payment. The estimate excluded property taxes and insurance and represented a 12.8% increase from a year earlier.
Housing supply also expanded. Approximately 1.4 million homes were listed for sale nationwide during October, an increase of 3.4% compared with the previous year.
Homes took a median of 31 days to enter pending status, two days longer than in October 2025. The longer listing period indicates that properties were taking slightly more time to secure contracts nationally, although local market conditions vary.
Earlier housing affordability data showed that a median-income family needed 36% of its income to cover the mortgage payment on a median-priced existing home during the second quarter of 2026, according to the NAHB/Wells Fargo Cost of Housing Index.
Unlike Zillow’s principal-and-interest estimate, that index incorporates additional housing expenses, including taxes and insurance, under different down-payment assumptions.
Loan Costs Extend Beyond the Advertised Mortgage Rate
For prospective borrowers, the latest rate decline changes only one component of homeownership expenses.
The Consumer Financial Protection Bureau recommends comparing standardized Loan Estimates from different lenders. These documents identify the interest rate, annual percentage rate, monthly payments, closing expenses and other loan charges.
The annual percentage rate includes certain borrowing fees beyond the stated interest rate, providing a broader measure of financing costs.
Discount points can reduce a mortgage’s interest rate in exchange for higher upfront expenses. Conversely, lender credits may lower closing costs while increasing the interest rate.
These differences matter when evaluating competing mortgage offers. The financing structure, expected ownership period and total monthly housing expenses can affect the cost of a loan even when advertised rates appear similar.
Frequently Asked Questions
What were mortgage rates on November 5, 2026?
Mortgage rates averaged 7.18% for a 30-year fixed loan and 6.57% for a 15-year fixed loan, according to Freddie Mac. Both averages declined from the previous week but remained above their year-earlier levels.
How much have mortgage rates declined over three weeks?
Freddie Mac’s 30-year fixed mortgage average decreased from 7.40% on October 15 to 7.18% on November 5. That represents a decline of 0.22 percentage points, or 22 basis points.
Did lower mortgage rates increase homebuyer demand?
The latest available application data did not show an increase in purchase activity. The Mortgage Bankers Association reported a 2% weekly decline in seasonally adjusted purchase applications through October 30, although that survey preceded Freddie Mac’s November 5 reading.
Are homes becoming more affordable as inventory increases?
Higher inventory can provide buyers with additional property options, but affordability depends on more than supply. Zillow’s October estimates showed mortgage payments remained higher than a year earlier despite a modest annual increase in home values.
What should borrowers compare when reviewing mortgage offers?
Borrowers can compare interest rates, annual percentage rates, closing costs and estimated monthly payments using standardized Loan Estimates. Loan terms, rate-lock conditions and upfront fees also affect the total cost of financing.
