Mortgage rates update Nov. 11, 2025

Current mortgage rates data:

Note that Coins2Day reviewed Optimal Blue’s latest available data on Nov. 10, with the numbers reflecting home loans locked in as of Nov. 7. 

Mortgage rates today: what's up?

If it seems like 30-year mortgage rates have been hovering around 7% for an eternity, that’s not far off the mark. Many watching the market anticipated rates would ease when the Federal Reserve began reducing the federal funds rate last year, but that didn’t occur. There was a short-lived decline leading up to the September 2024 Fed meeting, but rates quickly rebounded afterward.

In fact, by January 2025 the average rate for a 30-year, fixed-rate mortgage exceeded 7% for the first time since last May, according to Freddie Mac statistics. That’s a significant increase from the record-low average of 2.65% observed in January 2021, when the government was still attempting to boost the economy and prevent a pandemic-induced downturn.

Barring another major crisis, experts say we won’t have mortgage rates in the 2% to 3% range again in our lifetimes. And, with a cloudy economic outlook as President Donald Trump pursues policies including tariffs and deportations, some analysts have worried the labor market could constrict and inflation could resurface. In this climate, U.S. Homebuyers have long faced faced with high mortgage rates—though some found methods to make their purchase more manageable, such as negotiating rate buydowns with a builder when buying newly constructed homes.

Those looking to buy a home or refinance a mortgage did get some cause for joy in late August and early September of 2025. Ahead of the Fed’s Sept. 16-17 meeting, mortgage rates started trending noticeably downward, hitting a low not seen in almost a year. As expected, the Fed delivered a quarter percentage point reduction in the federal funds rate at that meeting. The central bank followed up with another quarter percentage point cut to its benchmark rate at the end of October.

Your best mortgage rate

While economic conditions are beyond your control, your financial profile as an applicant also has a substantial impact on the mortgage rate you’re offered. With that in mind, aim to do the following:

• Ensure your credit is in excellent condition. The minimum credit score for a conventional mortgage is generally 620 (for FHA loans, you may qualify with a score of 580 or a score as low as 500 with a 10% down payment). However, if you’re hoping to get a low rate that could potentially save you five or even six figures in interest over the life of your loan, you’ll want a score considerably higher. Consider that according to lender Blue Water Mortgage, a top-tier score is one of 740 or higher.
• Maintain a low debt-to-income (DTI) ratio. You can calculate your DTI by dividing your monthly debt payments by your gross monthly income, then multiplying by 100. For example, someone with a $3,000 monthly income and $750 in monthly debt payments has a 25% DTI. When applying for a mortgage, it’s typically best to have a DTI of 36% or below, though you may be approved with a DTI as high as 43%.
• Get prequalified with multiple lenders. It's a good idea to explore options from major banks, community credit unions, and digital lenders, then compare their proposals. Furthermore, speaking with loan officers at various financial institutions can assist you in determining your lender preferences and identifying the best fit for your requirements. When comparing interest rates, make sure your approach is uniform; for instance, if one quote includes the purchase of mortgage discount points and another does not, it's crucial to acknowledge the initial expense associated with lowering your rate by buying points.

Mortgage rates historic chart

To understand why current mortgage rates around 7% seem elevated, it's important to remember that rates between 2% and 3% are still a recent memory. Such low rates were achievable because of extraordinary government measures taken to avert a recession while the nation dealt with a worldwide pandemic.

However, under more typical economic conditions, experts agree we’re unlikely to see such exceptionally low interest rates again. Historically, rates around 7% are not unusually high.

Looking at a St. Louis Fed (FRED) chart that uses Freddie Mac data for the 30-year, fixed-rate mortgage average, we see that from the 1970s to the 1990s, these rates were generally standard, apart from a notable surge in the early 1980s. Specifically, mortgage interest rates went over 18% in September, October, and November of 1981.

While this historical view provides scant comfort to homeowners wishing to relocate but constrained by an unprecedentedly low interest rate, these scenarios are prevalent enough in today's market that the pandemic-era's low rates preventing homeowners from moving when they might have otherwise are now referred to as the “golden handcuffs.”

Elements influencing mortgage interest rates

The U.S. Economy's condition is likely the primary factor influencing mortgage rates. Lenders may increase rates to safeguard future earnings when they anticipate inflation.

Furthermore, the national debt plays a significant role. When the government's expenditures exceed its revenue, necessitating borrowing, this can lead to elevated interest rates.

Home loan demand is also significant. When demand is weak, lenders may lower rates to draw in customers. Conversely, if many individuals are looking for mortgages, lenders could increase rates to manage the increased workload.

The Federal Reserve also holds a significant position, capable of impacting mortgage rates through adjustments to the federal funds rate and through the acquisition or disposal of assets.

The federal funds rate's fluctuations receive considerable attention. Mortgage rates frequently adjust in response to its increases or decreases. However, it's vital to recognize that the Fed doesn't directly determine mortgage rates, nor do they consistently align perfectly with the fed funds rate.

The Federal Reserve also impacts mortgage rates through its balance sheet. In periods of economic hardship, it has the ability to purchase assets, such as mortgage-backed securities (MBS), to inject funds into the economy.

Recently, the Federal Reserve has been reducing its balance sheet by allowing assets to mature without renewal. This action typically leads to higher mortgage rates. Therefore, while attention is focused on reductions in the fed funds rate, the central bank's balance sheet management could have a more significant impact on the mortgage rate you're offered. 

The significance of comparing mortgage rates

To secure the most suitable mortgage, it's crucial to compare interest rates across different loan products and explore options with multiple financial institutions.

For those with superior credit, a traditional mortgage could be an ideal selection. Conversely, if your score falls under 600, an FHA loan might present a viable option that a conventional loan wouldn't.

Investigating choices with various banks, credit unions, and online lenders can substantially impact your total expenses. Freddie Mac's findings suggest that during periods of elevated interest rates, prospective homeowners could potentially reduce their yearly outlays by $600 to $1,200 by seeking quotes from several mortgage providers.