Mortgage Rates Slip to 7.11% as Fed Hike Nears

The average interest rate for a 30-year fixed mortgage reached 7.11% for the week ending Nov. 12, according to Freddie Mac. That was seven basis points below the prior week and the lowest reading in seven weeks. A year earlier, the average was 6.24%. The decline has offered some breathing room to buyers facing expensive financing, but the improvement may not last.

October inflation came in above economists’ expectations, while a stronger jobs report gave the Federal Reserve room to raise its benchmark rate again. Markets put the chance of a quarter-point increase in December above 93%. Fed Governor Christopher Waller also said officials should consider a half-point move if price pressures remain elevated. Another quarter-point increase in January 2027 carries 67% odds. Higher borrowing costs reduce the loan size a buyer can afford, while inflation takes more of each paycheck. First-time buyers face added pressure because they lack home equity to help with a down payment. Existing-home sales fell to their lowest point since August 2010, and new listings declined 10.3% from a year earlier, signaling a market where both buyers and sellers are pulling back.