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Key Takeaways

  • Rates for 30-year fixed rate mortgages dropped below 7% the first week of November.
  • Rates have been moving higher for most of 2022, rising from around 3% to over 7%.
  • More inflation and economic data needs to be released to know if inflation is finally cooling down or if this is a one-time event.

Mortgage rates have been rising since the start of 2022, thanks to the Federal Reserve raising interest rates to combat inflation. When a recent consumer price index report came in with lower-than-expected inflation, mortgage rates dropped, even though the Fed recently increased rates for the sixth time.

Here is what is happening with mortgage rates and where they might be going in the coming months.

Where mortgage rates stand today

According to Freddie Mac, a 30-year fixed-rate mortgage had an average interest rate of 6.95% for the week ending November 3, 2022. The prior week ending October 27, 2022, saw an average rate for 30-year fixed-rate mortgages of 7.08%.

15-year fixed-rate mortgages also saw a drop in interest rates to 6.29% for the week ending November 3rd, down from a 6.36% average the week before.

Because mortgage rates are extremely sensitive to economic data, they tend to move quickly. For the week ending November 10, 2022, the average rate on a 30-year fixed-rate mortgage went back up to 7.08%, and the 15-year fixed-rate mortgages rebounded to 6.38%.