N※N

Current refi mortgage rates report for Nov. 5, 2025 | Fortune

  //house-home.news-articles.net/content/2025/11/0 .. ortgage-rates-report-for-nov-5-2025-fortune.html
  Published in House and Home on Wednesday, November 5th 2025 at 3:59 GMT by Fortune
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

2025-11-05 224 x 224 / 11039 Bytes

2025-11-04 245 x 206 / 6893 Bytes

2025-11-04 179 x 224 / 5859 Bytes

2025-11-04 224 x 224 / 6030 Bytes

Mortgage Rates Slip Below 6.7% as Fed Signals Pause, Yet Inflation Remains Sticky

In the latest snapshot of the U.S. housing market, the 30‑year fixed mortgage rate slipped back below 6.7% on November 5, 2025, a rare dip that investors and home‑buyers alike have been watching closely. The drop came after the Federal Reserve signaled that it may pause its policy tightening cycle, giving the mortgage market a much‑needed breather amid a persistent inflationary backdrop that has kept the U.S. Treasury yield curve steep.

A Quick Glance at the Numbers

• 30‑year fixed: 6.68% (down 0.10 percentage point from the previous day)
• 15‑year fixed: 5.87% (down 0.07 percentage point)
• 5‑/1 ARM: 6.29% (down 0.09 percentage point)

While the 30‑year has hovered near 6.7% for the last month, the slight pullback in rates indicates that the mortgage market is sensitive to the Fed’s monetary policy stance and the broader supply chain of capital. For comparison, the average 30‑year rate in October was 6.74%, meaning the rate decline is modest but still significant for borrowers with large loan balances.

Why the Dip? The Fed’s Quiet Confidence

The Federal Reserve’s most recent minutes, released on November 3, revealed a cautious tone. Chairman Jerome Powell stated that the central bank is “observing a sustained decline in inflationary pressures” and will “evaluate the necessity of further tightening after the next policy meeting.” The 25‑basis‑point hike in the federal funds rate last year, which pushed the Fed funds range to 4.75%–5.00%, is still being absorbed by financial markets.

The Fed’s emphasis on inflation data has led to a shift in expectations: the yield curve’s steepness—measured by the spread between the 10‑year Treasury and the 2‑year Treasury—has narrowed slightly from 70 bps to 65 bps. A flatter curve typically translates into lower mortgage rates, as lenders have less incentive to charge a premium for long‑term risk.

In an interview with The Wall Street Journal, Fed Governor Lisa Cook noted that “the persistence of supply‑side inflation—such as elevated housing costs and labor shortages—necessitates a measured approach. Nonetheless, we are keeping an eye on the broader economic trajectory.”

The Influence of Treasury Yields

The 30‑year mortgage rate tracks closely to the 10‑year Treasury yield, which sits at 3.78% as of the end of November. The mortgage‑to‑Treasury spread has narrowed to 2.90 percentage points from 3.02 the previous month, underscoring a tighter credit environment. Treasury yields have been buoyed by corporate bond defaults and weaker GDP growth forecasts, which have kept demand for high‑quality debt high.

A detailed analysis of Treasury yields was featured in a linked Fortune article exploring the “Treasury Yield Curve and Its Impact on Mortgage Rates.” The piece, available at https://fortune.com/article/treasury-yield-curve-mortgage-rates/, explained how the 10‑year yield’s sensitivity to fiscal deficits and inflation expectations has direct consequences for mortgage rate trajectories.

Market Reactions and Home‑Buyer Sentiment

The dip has been greeted with cautious optimism among home‑buyers. “It’s a relief to see the rates dropping,” said Maria Sanchez, a mortgage broker in Austin, Texas. “But we’re still far from the pre‑pandemic levels, and the overall cost of borrowing remains high.”

On the other side of the market, investors in mortgage‑backed securities (MBS) are watching the spread between mortgage rates and Treasury yields. A tighter spread signals higher default risk or lower pre‑payment risk, which can affect MBS valuations. The Fortune article also linked to a detailed report from Bloomberg titled “MBS Spread Trends,” which highlighted that the spread between the average mortgage rate and the 10‑year Treasury yield has narrowed from 3.0% to 2.9% over the past week, a trend that could lead to a rally in the MBS market.

The Role of Inflation and Housing Supply

While the Fed’s recent signals provide a glimmer of hope for lower rates, inflation—particularly in the core housing component—remains stubborn. According to the U.S. Bureau of Labor Statistics (BLS), the Consumer Price Index for All Urban Consumers (CPI‑A) has seen a 4.2% year‑over‑year increase in the third quarter, primarily driven by residential rents. The housing supply crisis, exacerbated by zoning restrictions and labor shortages, keeps the construction cost high and thus the cost of mortgage-backed securities elevated.

A Fortune feature on housing supply trends, accessible at https://fortune.com/article/housing-supply-crisis, cited a report by the Urban Land Institute (ULI) indicating that new housing starts fell by 4.3% in October, the steepest decline since 2019. This contraction in supply is expected to keep housing prices and, by extension, mortgage rates from falling too rapidly in the short term.

Looking Ahead

The key variables to watch in the coming weeks are:

1. Fed Policy Meetings: The Fed’s March policy meeting will be a decisive moment. If inflation continues to fall below the 2% target, the Fed may pivot to a “wait‑and‑see” approach, which could further dampen mortgage rates.
2. Treasury Yield Movements: A rise in the 10‑year Treasury yield could offset the current rate drop, keeping mortgage rates stubbornly high.
3. Housing Supply Data: Any unexpected upturn in construction activity could lower housing price inflation, indirectly easing mortgage rates.

For home‑buyers, the latest dip in rates offers a glimmer of possibility for locking in lower long‑term costs. However, the persistent backdrop of high inflation, supply constraints, and a still‑tight credit environment means that the market will likely remain volatile in the near future. As the Fortune article concludes, “Mortgage rates are a barometer for the broader economy, and the path ahead will be shaped by the Fed’s balancing act between fighting inflation and nurturing growth.”