Mortgage Interest Rates Forecast
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Mortgage rates this week
After a brief respite last week, mortgage rates rose across the board the week ending Nov. 21. The average 30-year fixed rate is roughly a full percentage point higher than it was just two months ago.
The 30-year fixed-rate mortgage averaged 6.88% APR, up nine basis points from the previous week's average, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point.
The 15-year fixed-rate mortgage averaged 6.16% APR, up 12 basis points from the previous week's average.
The 5-year adjustable-rate mortgage averaged 7.72% APR, up 13 basis points from the previous week's average.
Nothing is a sure thing when it comes to mortgage rates. If back in September you'd placed a bet that mortgage interest rates would drop this fall, it would have seemed like a pretty safe bet. Average 30-year fixed rates were on a downward trajectory that started back in spring, plus the Federal Reserve was transitioning to a rate-cutting phase. And yet here we are, with an average 30-year fixed rate that's uncomfortably close to 7% territory. Though housing experts are still predicting rates will end the year near 6%, it's getting tougher to feel confident about those forecasts.
November mortgage rate forecast
Mortgage rates are likely to head downward, slowly, following the election.
Forecasts from Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors all imply that mortgage rates will fall in the final three months of this year and gradually decline throughout next year. The three organizations predict that the 30-year mortgage will average 6% to 6.3% from October through December, and to settle below 6% in the final three months of 2025.
As of the end of October, the 30-year mortgage rate averaged 6.43% in the fourth quarter. For the predictions of lower rates in the fourth quarter to pan out, mortgage rates would need to fall decisively in November and December. Time is running short for that to happen.
