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Mortgage Rates Today, Monday, November 3: A Little Higher - NerdWallet

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  Published in House and Home on Monday, November 3rd 2025 at 10:04 GMT by NerdWallet
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Mortgage Rates on Monday, November 3, 2025 – A Detailed Snapshot

On Monday, November 3, 2025, NerdWallet’s daily mortgage‑rate update delivered the latest snapshot of the U.S. home‑loans market. The report, which combines data from the Mortgage Bankers Association (MBA) and the Federal Reserve, gives borrowers a clear view of what to expect in the short term, how rates have shifted in the last 24 hours, and what underlying economic forces are shaping the market. Below is a comprehensive summary of the article’s key points, broken down by type of loan, recent changes, economic backdrop, and practical guidance for homeowners and prospective buyers.

1. Current Rate Landscape

Key takeaways:

• All loan types posted a modest uptick of 4 basis points (0.04 %) on Monday, reflecting a gradual upward trend that has been building over the past month.
• The 30‑year fixed rate sits at 7.24 %, its highest level since early 2024, while the 15‑year fixed rate remains slightly below the 30‑year rate, at 6.73 %.
• Adjustable‑rate mortgages (ARMs) follow a similar pattern, with 5/1 and 1/1 options both up by 4 basis points.

The article notes that such incremental increases are typical when the Federal Reserve’s policy rates and the 5‑year Treasury yield are moving in the same direction, which is the case for the week of early November.

2. Rate Trends Over the Past 30 Days

NerdWallet’s chart shows that the 30‑year fixed rate has climbed by 0.18 % over the last 30 days, a rise driven primarily by:

• Higher Treasury yields: The 5‑year Treasury yield rose from 1.58 % at the beginning of October to 1.82 % on November 3.
• Inflation concerns: Core inflation, measured by the PCE index, remains above the Fed’s 2 % target, prompting market participants to price in a stronger economy.
• Supply‑demand dynamics: The housing market has seen a steady influx of buyers with strong credit, which pushes lenders to raise rates to preserve margins.

The article includes a side bar that compares the current 30‑year rate to the historical average of 6.7 % (the long‑term average from 1990 to 2024). While the current level is higher, the report stresses that rates are still near the 10‑year low of 7.6 % seen in early 2024, meaning there is still room for decline if economic conditions change.

3. Economic Drivers Behind the Rate Movements

a. Federal Reserve Policy

The Federal Reserve has signaled that it is keeping its target range for the federal funds rate at 5.25‑5.50 % and that it will maintain this stance until it observes a decline in inflation. The article explains that mortgage rates are typically 3.5‑4.0 percentage points above the 5‑year Treasury yield; therefore, the Fed’s actions indirectly influence mortgage rates.

b. Inflation and PCE Data

The most recent Personal Consumption Expenditures (PCE) data released in October showed an inflation rate of 3.9 %, slightly above the Fed’s 2 % target. Analysts note that persistent inflationary pressures will likely keep the Federal Reserve from lowering rates, which in turn keeps mortgage rates from falling.

c. Housing Market Conditions

• Demand: The article highlights that the current demand for homes remains high, especially in the 25‑34 age cohort that is still in the early stages of home ownership.
• Supply: Inventory remains tight, with the average days on market hovering at 20 days, well below the 30‑day benchmark. Tight supply keeps price growth steady, reinforcing lender willingness to push rates slightly higher.

4. Practical Implications for Homebuyers

a. When to Lock In a Rate

The article advises that if you are planning to buy a home in the next 30‑60 days, locking in a rate now may be advantageous, especially if you anticipate that the Fed could tighten policy further. The “lock‑in period” for many lenders is typically 30 days, after which you can renegotiate.

b. Rate‑Comparison Tips

• Use NerdWallet’s Rate Calculator: The article links to a tool that lets you compare rates across lenders, factoring in points and fees.
• Check your credit score: A FICO score above 720 can get you rates as low as 6.80 % on a 30‑year fixed, whereas a score below 650 could push you above 7.50 %.
• Consider an ARM: If you plan to refinance or sell within 5–7 years, an ARM could offer lower initial rates, albeit with risk if rates climb.

c. Mortgage Rate Forecast

The NerdWallet article quotes a consensus forecast from the MBA, which predicts a 10‑year average for 30‑year fixed rates of 7.10 %. However, the article cautions that any surprise change in Fed policy or inflation could alter this trajectory.

5. Additional Resources (Links Followed)

1. “How Mortgage Rates Are Calculated”
   The linked page explains that mortgage rates are a function of three core components: the lender’s margin, the underlying Treasury yield, and the borrower’s credit risk. It also shows how “origination fees” and “points” factor into the effective APR.

2. “5 Ways to Improve Your Mortgage Rate”
   This guide lists actionable steps for buyers:
   - Shop around for the best lender.
   - Consider a 5/1 or 1/1 ARM.
   - Increase your down payment to reduce loan‑to‑value (LTV).
   - Use a mortgage broker to find hidden savings.
   - Pay attention to the credit utilization ratio.

3. “Mortgage Rate Calculator”
   The calculator demonstrates how monthly payments change with a 0.25 % drop in the rate. For example, a $350,000 loan at 7.24 % costs $2,462 per month, but at 7.00 % it drops to $2,417—a $45 monthly savings, or $540 per year.

4. “Mortgage‑Rate‑Today News” Newsletter
   The article recommends subscribing to NerdWallet’s daily newsletter for real‑time updates on rates and market trends.

5. “Jumbo Loans Explained”
   This link clarifies that jumbo loans exceed the conforming loan limits (set by Fannie Mae and Freddie Mac) and often have higher rates due to greater risk. The current jumbo 30‑year rate is 7.30 %, slightly above the conforming 30‑year rate.

6. Summary of Key Points

• Rates are slightly higher across all major mortgage products, with a 4‑basis‑point uptick on Monday.
• Economic backdrop: Fed’s steady policy, persistent inflation, and a tight housing market are maintaining upward pressure.
• Rate trends: 30‑year fixed rates have risen 0.18 % in the last 30 days, still near 10‑year lows.
• Borrower advice: Lock in a rate if you’re buying soon, use NerdWallet tools to compare lenders, and explore ARMs if you expect to sell within 5–7 years.
• Forecast: MBA projects a 10‑year average of 7.10 % for 30‑year fixed rates, but any Fed tightening could push rates higher.

By consolidating daily data, economic analysis, and actionable guidance, NerdWallet’s mortgage‑rate update on November 3, 2025 provides homebuyers and existing homeowners with the clarity needed to navigate a fluctuating market. Whether you’re a first‑time buyer, a seasoned investor, or simply curious about how mortgage rates are determined, the article offers a comprehensive, data‑driven overview that helps you make informed decisions in today’s real‑estate environment.