Mortgage Interest Rates Forecast

Mortgage rates dipped again this week, with the average 30-year fixed falling to 6.01% APR, according to rates provided to NerdWallet by Zillow.

That’s the lowest level in more than a year, helped by the Federal Reserve’s second short-term rate cut in as many months. The Fed has shifted from fighting inflation to supporting jobs, and investors reacted early — pushing mortgage rates down ahead of each move. With the 30-year average now more than a full percentage point below its late-spring peak, some homeowners finally have a chance to refinance into something more affordable.

A 6% mortgage rate might not sound like a steal, but dropping from 7% to 6% can save hundreds a month — and more than $80,000 over the life of a typical loan. Homeowners who bought in 2023 or early 2024 may benefit most. Still, the window could close fast: rates ticked up after Fed Chair Jerome Powell warned that another cut in December isn’t guaranteed. If you’ve been waiting to refinance, now’s the time to compare offers before the market shifts again.

» MORE: Is it a good time to buy a house? Here's what to consider.

November Mortgage Rates Forecast

Financial markets are betting that the Federal Reserve will keep easing policy, with at least one more rate cut possible before year’s end. If that happens, mortgage rates could edge lower — but as always, nothing is guaranteed until the Fed makes its move.