US Mortgage Rates Fall to 7.21%: What It Means for Homebuyers
US mortgage rates fell for a fourth straight week to 7.21%, lifting home-purchase applications 8% — but borrowing costs are still far above last year's 5.99%.
Image: Wikimedia Commons / Infrogmation of New Orleans
WASHINGTON, Nov 12 — US mortgage rates fell for a fourth straight week, dropping to 7.21% and giving the housing market its strongest weekly lift in months, according to data released on Wednesday by the Mortgage Bankers Association.
The average contract rate on a 30-year fixed-rate mortgage with a conforming loan balance fell nine basis points to 7.21% in the week ending November 6, down from 7.30% the week before — the lowest since mid-September. Total mortgage applications rose 6.2% on a seasonally adjusted basis, with home purchases up 8% and refinancing up 5%.
- The 30-year fixed rate fell to 7.21%, its fourth straight weekly decline and the lowest since mid-September.
- Home-purchase applications rose 8%, the strongest gain since mid-April, but remain 18% below a year ago.
- Refinance applications rose 5% but are still 57% lower than the same week last year.
- The Federal Housing Administration loan rate slipped back below 7%, more than 20 basis points under the standard rate.
What Is the 30-Year Mortgage Rate Today?
The 30-year fixed rate stands at 7.21% for the week ending November 6, according to the Mortgage Bankers Association survey. Freddie Mac's separate survey put it at 7.18%. A year ago, the same rate averaged 5.99%.
Rates have eased by nearly 30 basis points since early October, when they touched an almost two-year high of about 7.5%. "Mortgage rates declined for the fourth straight week, with the 30-year fixed rate dropping to 7.21 percent, the lowest rate since mid-September," said Joel Kan, the association's deputy chief economist.
| Measure | This week | A year ago |
|---|---|---|
| 30-year fixed, conforming | 7.21% | 5.99% |
| Total mortgage applications | Up 6.2% | — |
| Home-purchase applications | Up 8% | Down 18% |
| Refinance applications | Up 5% | Down 57% |
| FHA 30-year rate | Below 7% | — |
How Falling Mortgage Rates Affect Homebuyers and Refinancing
Cheaper borrowing is starting to pull buyers back, though from a low base. The purchase index rose 8% on a seasonally adjusted basis, its strongest weekly gain since mid-April. Demand for FHA and veterans' loans grew particularly fast, a sign that first-time buyers are responding.
On a $400,000 loan, the drop from the early-October peak saves a borrower about $79 a month: about $2,718 at 7.21% against about $2,797 at 7.50%. The same loan cost about $2,396 a month a year ago at 5.99%, a gap of about $322 a month.
Refinancing is moving too, but slowly. Refinance applications rose 5% for the week, their third straight weekly gain, yet remain near the lowest level since January 2025. Most homeowners who locked in rates near 3% in 2021 have little reason to refinance at 7.21%. Savers, meanwhile, earn more on inflation-linked government savings.
When Will Mortgage Rates Fall Below 7%?
Rates have not been below 7% on the association's survey since mid-September. The FHA rate has already slipped under 7%, and Freddie Mac's survey put the 30-year rate at 7.18%. At about nine basis points a week, the conforming rate could test 7% within a few weeks — but that pace is not guaranteed.
Much depends on inflation and the Federal Reserve. October's consumer price data came in hotter than expected, and the 10-year Treasury yield, the benchmark that guides mortgage pricing, stood near 5% after a weak debt auction. The central bank is still weighing whether to raise rates again in December.
Frequently Asked Questions
What is the current 30-year mortgage rate in the US?
The average 30-year fixed mortgage rate is 7.21%, according to the Mortgage Bankers Association survey for the week ending November 6, 2026. Freddie Mac's separate survey put it at 7.18%, the lowest since mid-September.
Are mortgage rates going down in November 2026?
Yes. Rates have fallen for four straight weeks, down nearly 30 basis points from an almost two-year high of about 7.5% in early October. Even so, they remain well above the 5.99% average of a year ago.
How much will my monthly payment drop if mortgage rates fall?
On a $400,000 30-year loan, the fall from 7.50% to 7.21% cuts the monthly payment by about $79, from about $2,797 to about $2,718. The same loan cost about $2,396 a month a year ago at 5.99%.
Is now a good time to buy a house with mortgage rates at 7.21%?
Purchase applications jumped 8% last week, the strongest gain since mid-April, but they are still 18% below a year ago. October existing-home sales figures, due Thursday, are forecast to fall to the lowest level since 2010.
