Mortgage rates continued their downward trajectory as November began, offering modest relief to prospective homebuyers.
The average rate on a 30-year fixed mortgage fell to 6.93% APR, according to data provided to NerdWallet by Zillow. That represents a decline of 14 basis points from the previous day and 17 basis points over the past week. A basis point equals one one-hundredth of a percentage point.
While the recent drop is notable, borrowers should focus on the broader trend rather than daily fluctuations. Since September, rates have largely hovered near the 7% mark — a full percentage point above where they stood at the start of 2026.
This week’s employment data could shift rate momentum in either direction. More on that below.
Average mortgage rates, last 30 days
Kate on Rates
What influences mortgage rates?
Mortgage rates are constantly changing, driven largely by market reactions to inflation reports, employment data, Federal Reserve policy meetings, and global events. Even minor shifts in the bond market can affect mortgage pricing.
This week, analysts are watching the October jobs report, scheduled for release on Friday, Nov. 6. If employment remains stable or improves, it could strengthen the case for the Federal Reserve to raise the federal funds rate again at its Dec. 8–9 meeting.
Although the Fed does not set mortgage rates directly, it controls the federal funds rate — the interest banks charge each other for overnight lending. That rate influences the cost of funding mortgages. Lenders typically raise mortgage rates when they anticipate a federal funds rate increase.
The Fed hiked the federal funds rate in September. A resilient labor market would suggest the economy can absorb higher borrowing costs.
The Fed’s dual mandate — controlling inflation while maximizing employment — guides these decisions. Raising the federal funds rate is its primary tool for curbing inflation. If policymakers can lower inflation without significantly damaging employment, they may feel more confident pursuing further tightening.
The September Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, was released last Thursday. It showed year-over-year inflation at 3.6% in September, up from 3.4% in August.
Since September’s rate hike occurred mid-month, October’s inflation data will better reflect its impact. The October PCE report is due on Nov. 25.
Should I refinance?
Refinancing may be worthwhile if current rates are at least 0.5 to 0.75 percentage points below your existing rate, provided you plan to stay in the home long enough to recoup closing costs.
At today’s levels, a refinance could make sense if your current rate is approximately 7.43% or higher — though relatively few borrowers fall into that category.
Clarify your objective: Are you aiming to reduce your monthly payment, shorten your loan term, or access equity through a cash-out refinance? For instance, accepting a higher rate on a cash-out refi may still be cost-effective compared to keeping your original mortgage and adding a HELOC or home equity loan.
If your goal is a lower rate, use a refinance calculator to project savings and determine the break-even point on refinancing costs.
Should I start shopping for a home?
There is no universal “right” time to buy — the key question is whether you can comfortably afford a mortgage at current rates.
If the answer is yes, don’t overthink the possibility of lower rates down the road; you can always refinance later. Instead, focus on securing preapproval, comparing lender offers, and identifying a monthly payment that fits your budget.
An affordability calculator can help estimate your potential payment. If buying isn’t feasible right now, use the time to strengthen your financial profile: pay down debt and build your down payment savings. Both steps improve cash flow and can qualify you for a better rate when you’re ready to purchase.
Should I lock my rate?
If you have a quote you’re satisfied with, consider locking your rate — especially if your lender offers a float-down option. A float-down allows you to capture a lower rate if market conditions improve during your lock period.
Rate locks shield you from increases while your loan is processed, and in a volatile market, that certainty can be valuable.
Nerdy Reminder: Rates can shift daily, even hourly. If you’re comfortable with the terms offered, committing is a reasonable decision.
Why is the rate I saw online different from the quote I got?
Advertised rates are sample rates — typically based on a borrower with excellent credit, a large down payment, and the purchase of discount points. Those assumptions rarely match every buyer’s situation.
Beyond market forces, your personalized quote depends on your:
- two people with similar credit scores may receive different rates based on their overall financial profiles.
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If I apply now, can I get the rate I saw today?
Possibly — but even personalized quotes can change until you lock. Lenders adjust pricing multiple times a day in response to market movements.