US Mortgage Rates Fall for a Fourth Week as Applications Jump 6.2%

US mortgage rates fell for a fourth consecutive week, with the average 30-year fixed rate dropping to 7.21% in the week ending 6 November — its lowest level since mid-September — and mortgage applications jumped as buyers responded to the cheaper borrowing costs, according to the Mortgage Bankers Association (MBA).

The survey, released on 11 November, showed total application volume up 6.2% on a seasonally adjusted basis from the previous week, the strongest response yet to a month of steadily easing rates.

Applications respond as rates ease

The MBA’s Market Composite Index, which measures total mortgage application volume, rose 6.2% on a seasonally adjusted basis in the week ending 6 November. Applications to buy a home climbed 8% after seasonal adjustment, while refinancing applications rose 5%.

The average contract rate on a 30-year fixed mortgage with a conforming loan balance fell to 7.21%, down from 7.30% the week before. It was the fourth straight weekly decline and the lowest reading since mid-September.

“Mortgage rates declined for the fourth straight week, with the 30-year fixed rate dropping to 7.21 percent, the lowest rate since mid-September,” said Joel Kan, the MBA’s vice president and deputy chief economist.

Government-backed loans saw some of the strongest activity. The rate on Federal Housing Administration (FHA) loans moved back below 7%, more than 20 basis points under the conforming rate, which the MBA said helped first-time buyers currently in the market. Conventional, VA and FHA purchase applications all posted gains over the week, with particularly strong growth for FHA and VA loans.

Demand still far below last year’s pace

The rebound, while welcome, starts from a low base. Purchase applications were still 18% below the same week a year ago, and refinancing applications were 57% lower, the MBA said.

A year ago, the average 30-year fixed rate stood at 5.99%. Rates peaked at about 7.5% early last month, so the four-week slide has brought borrowing costs down by roughly 30 basis points — a meaningful move, but one that leaves them restrictive for many American buyers.

“The declining trend in rates helped to spur stronger application activity, although the pace of purchase and refinance applications remain considerably lower than a year ago,” Kan said.

There are early signs of more choice for buyers. Housing inventory was up 7.2% compared with the same week in 2025, according to Calculated Risk, even as purchase activity remained depressed.

A bounce in daily rates tempers the mood

The weekly average tells only part of the story. Daily rates jumped on Tuesday, with Mortgage News Daily reporting the average 30-year fixed rate up 12 basis points in a single day to 7.30%, its largest one-day increase in more than a month, after a hotter-than-expected inflation reading.

Realtor.com reported that consumer prices rose 0.4% in October, beating forecasts and pushing market expectations towards further and larger rate rises from the Federal Reserve. Traders put the likelihood of an additional rate hike at around 77%, according to CME Group’s FedWatch tool.

A separate weekly survey from Freddie Mac put the 30-year fixed rate at 7.18%, down from 7.21% the week before — a slightly different reading from the MBA’s figures, but the same direction of travel.

What it means for buyers

For prospective buyers, the message is mixed. Four weeks of falling rates have brought the cheapest borrowing costs since mid-September, and the jump in applications shows that even modest relief is enough to draw some buyers back. The FHA rate dipping below 7% is particularly helpful for first-time buyers, who often rely on government-backed loans.

Yet affordability remains stretched. Rates are still more than a point above last year’s levels, home prices are high, and the daily rate bounce after the inflation data is a reminder that the easing trend is fragile. The broader backdrop is also uncertain: a strong jobs market, with job openings at 7.52 million in September, and markets steadied after the midterm reaction, but inflation is proving stubborn.

For now, the housing market has a small window of relief. Whether it turns into a sustained recovery will depend on whether rates keep falling — or whether the next inflation reading sends them back up.