Freddie Mac reports average 30-year mortgage rates drop to 7.18%

If you are waiting for mortgage rates to fall, you might have missed the first small dip. According to Yahoo Finance, mortgage rates have dropped for the third week in a row. As of Nov. 5, Freddie Mac, the government-backed home loan company, reported that the average 30-year fixed-rate mortgage fell 8 basis points to 7.18%.

At this time last year, mortgage rates averaged 6.22%. Meanwhile, the average 15-year fixed mortgage rate this week was 6.57%, down 3 basis points from the previous week. The 10-year Treasury yield, a benchmark for mortgage rates, has recently fallen from 24-year highs, though persistent concerns about the Middle East conflict, oil prices, and inflation keep the bond market jittery.

Jake Krimmel, senior economist with Realtor.com, a real estate listings company, noted that surging mortgage rates caused the housing market to hit pause this fall. "Surging mortgage rates caused the housing market to hit pause this fall, with buyers stepping back first and sellers following," Krimmel said in a statement.

RelatedFreddie Mac says 30-year mortgage rates cool to 7.24%

The latest forecasts from the Mortgage Bankers Association, a trade group for real estate finance, and Fannie Mae, the government-backed mortgage buyer, expect rates to stay over 7% in 2027. Jeremy Olsher, principal at Mizner Residential Group, a real estate brokerage in Compass, Fla., said waiting for rates to improve can lower a monthly payment significantly, but does not guarantee a cheaper home purchase.

"If rates fall enough to bring more buyers back, the benefit can be partly absorbed by stronger competition," Olsher said. Prospective buyers should consider all homeownership costs, including insurance, property taxes, homeowner association fees, and maintenance.