The average annual percentage rate on a 30-year fixed mortgage slipped to 6.93% on Tuesday, November 3, according to rates Zillow provided to NerdWallet. That was 14 basis points below the previous day and 17 basis points lower than a week earlier. One basis point equals one-hundredth of a percentage point.
Despite the latest decline, mortgage rates have hovered around 7% since September and are about one percentage point higher than at the beginning of 2026. Rates can shift in response to inflation reports, employment figures, Federal Reserve decisions, global news and changes in the bond market.
The October jobs report, due Friday, November 6, is among the indicators being watched this week. Steady or improving employment could strengthen the case for another Federal Reserve increase to its overnight borrowing rate at the December 8-9 meeting. The Fed does not directly set mortgage rates, but lenders may raise them if they expect the federal funds rate to increase.
The Fed raised that rate in September. Meanwhile, the September Personal Consumption Expenditures price index, the central bank’s preferred inflation measure, showed annual inflation of 3.6%, up from 3.4% in August. October’s PCE report is scheduled for November 25.
For homeowners considering refinancing, the guidance is to compare their current rate with available offers and account for closing costs and how long it would take to recover them. A refinance may be worth considering when a new rate is at least 0.5 to 0.75 percentage points below the existing one. At current rates, that could apply to borrowers with rates around 7.43% or higher, though the number of people in that position is limited.
Mortgage quotes vary by borrower and can depend on factors including credit score, debt-to-income ratio, employment history, down payment, loan type, location, property type and loan amount. Advertised rates are examples and may assume strong credit, a large down payment or mortgage points. Quotes can also change before a rate is locked, as lenders adjust pricing in response to market conditions.
Sources: NerdWallet.