30-Year Mortgage Rate Falls to 7.18%
The average 30-year fixed mortgage rate fell to 7.18% this week, its third weekly decline, but remains well above the 6.22% of a year ago.
By Erick Tarray · · 2 min read
Mortgage rates just took a third step down, but they are still a full floor above where they stood last year. The average 30-year fixed rate fell to 7.18% this week from 7.24%, according to Freddie Mac's weekly survey, versus 6.22% a year ago [1].
"Mortgage rates continued their downward trajectory this week," said Sam Khater, Freddie Mac's chief economist [1].
How we got here
- In late February, the 30-year average briefly touched 5.98%, its lowest since late 2022, the Associated Press reported [2].
- Rates then rose after the U.S. war with Iran began, lifting oil prices and inflation, and peaked at 7.4% in early October, per AP [2].
- The 10-year Treasury yield, the benchmark lenders use to price home loans, topped 5.30% in early October and eased to 4.84% by Thursday midday, AP said [2].
- The 15-year fixed rate slipped to 6.57% from 6.60% last week, compared with 5.50% a year ago, according to Freddie Mac [1].
But Freddie Mac's average describes a best-case borrower: a conventional purchase loan with 20% down and excellent credit [3]. Borrowers with weaker profiles may be quoted above it, AP notes [2]. The 10-year yield also stood at 4.9% on November 4, still 0.8 points higher than a year earlier, according to Treasury data [4].
What it means for you
By our math, a $400,000 30-year loan at 7.18% costs about $2,710 a month in principal and interest, versus $2,726 at last week's 7.24%, a $16 saving. Against the 7.4% peak, the saving is about $60 a month. Against last year's 6.22%, the same loan costs about $255 more each month, roughly $3,060 a year. No source here forecasts the next move, so one conservative approach is to run deal numbers at today's rate and treat any further drop before closing as a bonus.
Zoom out
U.S. housing has been in a slump since 2022, and sales of previously owned homes were flat last year at a 30-year low, AP reported [2]. Mortgage rates generally track the 10-year Treasury yield, which remains well above its 3.97% level from before the war [2].
This is market commentary, not investment advice.
Sources
- [1]Freddie Mac, Mortgage Rates Decline for Third Consecutive Week to 7.18%, Nov 5, 2026.
- [2]Associated Press (via ABC News), The average US 30-year mortgage rate falls to 7.18% this week, its third straight decline, Nov 5, 2026.
- [3]Freddie Mac, Primary Mortgage Market Survey (PMMS): Mortgage Rates, Nov 5, 2026.
- [4]U.S. Treasury, 10-year Treasury yield, daily par yield curve (via The Portal data), Nov 4, 2026.
