As Treasury Yields Decline, Mortgage Rates Move Down

The 30-year fixed-rate mortgage (FRM) saw its second week of declines, this week averaging 7.5%, down from 7.76% last week, according to the latest Primary Mortgage Market Survey® (PMMS®) released today by Freddie Mac. 

This week’s numbers:

  • 30-year fixed-rate mortgage averaged 7.5% as of November 9, 2023, down from last week when it averaged 7.76%. A year ago at this time, the 30-year FRM averaged 7.08%.
  • 15-year fixed-rate mortgage averaged 6.81%, down from last week when it averaged 7.03%. A year ago at this time, the 15-year FRM averaged 6.38%.

What the experts are saying:

“As Treasury yields decline, the 30-year fixed-rate mortgage dropped a quarter of a percent, the largest one-week decrease since last November,” said Sam Khater, Freddie Mac’s chief economist. “Incoming data show that household debt continues to rise, primarily due to mortgage, credit card and student loan balances. Many consumers are feeling strained by the high cost of living, so unless mortgage rates decrease significantly, the housing market will remain stagnant.” Economist Jiayi Xu commented: 

“The Freddie Mac fixed rate for a 30-year mortgage dropped 0.26 percentage points to 7.5 percent this week, the biggest one-week decrease since last November. This notable drop is influenced by a combination of factors, including slower long-term debt issuance, steady policy rates, and a slower job market. During the latest Federal Open Market Committee (FOMC) meeting, members of the Fed voted to maintain the short-term policy rate within a range of 5.25 to 5.5 percent. Nevertheless, the option for an additional future rate hike is still on the table as more economic indicators are needed to determine whether the current policy is ‘restrictive enough’ to bring inflation back to the 2% target. Meanwhile, the October jobs report, which revealed moderate job growth and reduced wage pressures, may instill confidence among policymakers that the economy will continue to progress in the desired direction without the need for additional rate hikes in the coming months. As the possibility of a rate hike remains on the table, investors are likely to exercise caution in their positioning, and the expectations for rates to stay steady to slightly higher remains.

“With the 30-year fixed mortgage rates persisting at their two-decade highs for seven consecutive weeks, significant challenges have arisen for homebuyers. While the median listing price in October 2023 stood at the same level as last year, elevated mortgage rates have resulted in a significant increase in the cost of financing a typical home for sale. According to’s October 2023 estimates, this increased monthly costs over $166, representing a 7.4% rise compared to the previous year–a new record surpassing what was already the highest amount since began tracking this data in mid-2016. In addition, it has raised the required annual household income for purchasing a median-priced home by $6,600, reaching a total of $120,000.

“As today’s housing market has created various challenges for homebuyers, finding the most suitable loan products is critical to achieve homeownership. For example, veteran households who utilize VA loans could find themselves in a more advantageous position compared to those who are not aware of this loan option, given that VA loans offer  zero down payments, flexible credit criteria, and lower mortgage rates, all of which contribute to greater homeownership opportunities. Additional details about home loan choices, mortgage rates, and monthly payment calculations can be accessed with’s RealCost Tools.”

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