The average rate on a 30-year fixed US mortgage slipped 9 basis points to 7.21% in the week ending November 6, marking a fourth straight weekly decline and offering some relief to the pressured housing market. Borrowing costs have fallen nearly 30 basis points from the almost two-year high of 7.5% reached early last month, though rates remain high enough to keep many potential buyers on the sidelines.
The recent pullback in financing costs helped drive a 7.5% increase in mortgage applications for home purchases—the largest weekly rise since mid-April and only the second gain since late August. Applications for refinancing also climbed 4.5%, extending their advance to a third consecutive week, though the refinancing index is still hovering near its lowest level since January 2025.
Despite these tentative improvements, a more prolonged and substantial decline in borrowing costs may be needed to generate a stronger rebound in housing activity. Contract signings for previously owned homes fell to a record low in September after the sharp run-up in mortgage rates.
