Mortgage Interest Rates Forecast

After several weeks of falling mortgage rates leading up to the Federal Reserve’s late October meeting, rates are now climbing again. Stronger employment data has shifted market expectations, pushing the average 30-year fixed-rate mortgage up to 6.18% APR in early November, according to data provided to NerdWallet by Zillow.

Still, home buyers shouldn’t give up. The winter months are typically slower for real estate, which can give buyers more room to negotiate prices. Even if borrowing costs rise, scoring a lower purchase price could help balance out higher monthly payments.

November Mortgage Rates Forecast

It’s unclear whether central bankers will continue cutting rates when they meet again in December. For now, the Fed’s focus may be shifting from protecting jobs to keeping inflation in check. A modest rebound in hiring last month may ease concerns about unemployment, and inflation remains slightly above the Fed’s target. Raising the federal funds rate is the Federal Reserve's method for curbing inflation. That means another rate cut is not guaranteed — and mortgage rates could keep inching upward.

»MORE: How the Fed Affects Mortgage Rates