Mortgage rate update for November 12, 2025: Rates remain largely unchanged

Current mortgage rates data:

Coins2Day examined Optimal Blue’s most recent data on November 11, showing home loans that were locked in by November 10. 

What's the current situation with mortgage rates in today's market?

It's hardly an exaggeration to say that 30-year mortgage rates have been hovering around 7% for an extended period. Contrary to expectations that interest rates would fall following the Federal Reserve's reduction of the federal funds rate last year, this outcome did not materialize. Rates saw a brief dip prior to the Federal Reserve's September 2024 gathering, only to rebound swiftly thereafter.

Indeed, by January 2025 the average rate on a 30-year, fixed-rate mortgage surpassed 7% for the first time since last May, as reported by Freddie Mac data. This is a strikingly elevated figure when contrasted with the historical average low of 2.65% observed in January 2021, a period when the administration was actively endeavoring to boost the economy and prevent a downturn stemming from the pandemic.

Barring another major crisis, specialists concur that mortgage rates won't return to the 2% to 3% bracket within our lifetimes. Furthermore, with President Donald Trump's implementation of policies such as tariffs and deportations, certain analysts have expressed concern that the job market might shrink and inflation could rise again.

In this context, the U.S. Prospective homeowners have frequently contended with elevated mortgage interest rates, yet certain individuals might discover methods to render their acquisition more cost-effective, for instance, by negotiating rate reductions with a developer when buying a new build. Substantial relief for home buyers began to appear in late August 2025. Prior to the Fed's September gathering, rates saw a distinct decline, and they continued to edge lower as the October meeting approached.

The Federal Reserve implemented a 0.25% reduction in the federal funds rate during September, subsequently enacting another 0.25% decrease in October. With a final Fed meeting scheduled for December, a further reduction remains a possibility at that time, though not guaranteed.

Securing the most favorable mortgage rate available

Although economic circumstances are outside your influence, your financial standing as a borrower significantly affects the mortgage interest rate you receive. Considering this, strive to accomplish 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). Should you be aiming for a low rate that might save you five or even six figures in interest throughout your loan's duration, a considerably higher score will be necessary. For instance, lender Blue Water Mortgage notes that a score of 740 or higher is considered top tier.
• 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. Consider trying a mix of large banks, local credit unions, and online lenders and comparing offers. Additionally, connecting with loan officers at several different institutions can help you evaluate what you’re looking for in a lender and which one will best meet your needs. Just ensure that when you’re comparing rates, you’re doing so on common ground—if one estimate involves purchasing mortgage discount points and another doesn’t, it’s important to recognize there’s an upfront cost for buying down your rate with points.

Mortgage rate history chart

An important element of context for the discussion about high mortgage rates is that today’s rates around 7% feel high because rates between 2% and 3% are fresh in consumers’ minds. Those rates were possible due to government action aimed at preventing recession as the country grappled with the unprecedented coronavirus pandemic.

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

Consider this St. Louis Fed (FRED) chart tracking Freddie Mac data on the 30-year, fixed-rate mortgage average. From the 1970s through the 1990s, such rates were more or less the norm, with a significant spike in the early 1980s. In fact, September, October, and November of 1981 all saw mortgage interest rates exceeding 18%.

That said, this historical perspective offers little consolation to homeowners who may want to move but are locked in with a once-in-a-lifetime low interest rate. Such situations are common enough in the current market that low pandemic-era rates keeping homeowners from moving when they otherwise would have become known as the “golden handcuffs.”

What affects mortgage rates

The state of the U.S. Economy is probably the main thing that affects mortgage rates. If lenders think inflation is on the horizon, they’ll likely raise rates to protect their ability to turn a profit. 

Another key issue in the grand scheme of things is the national debt. When the government has to borrow to cover its spending, that exerts upward pressure on interest rates.

The demand for home loans is important too. If mortgage applications are scarce, lenders might lower rates to drum up business. But if loans are in high demand, they may raise interest rates to cover their costs.

And, the Federal Reserve’s decisions play a role too. The Fed can impact mortgage rates by changing the federal funds rate and by how it manages its balance sheet. The federal funds rate probably gets the most attention between these two. When it changes, mortgage rates often follow. But remember, the Fed doesn’t set mortgage rates directly, and they don’t always move exactly with the fed funds rate.

The Fed also influences interest rates on long-term financial products through its balance sheet. In tough economic times, it can buy assets like mortgage-backed securities (MBS) to boost the economy. But recently, the Fed has been letting its balance sheet shrink, not replacing assets as they mature. This tends to push rates up. So while everyone focuses on Fed rate decisions, what it does with its balance sheet might be even more important for your mortgage rate.

Compare mortgage rates for savings

Comparing rates on different types of loans and shopping around with various lenders are both crucial steps in obtaining the best mortgage for your situation.

If your credit is excellent, opting for a conventional mortgage might be a great choice for you. However, if your score is below 600, an FHA loan may provide an opportunity that a conventional loan would not.

When it comes to exploring your options with different banks, credit unions, and online lenders, it can make a significant difference in what you pay each year. Freddie Mac research indicates that in a market with high interest rates, homebuyers may be able to save $600 to $1,200 annually if they apply with multiple mortgage lenders.