Mortgage rates rise as inflation data spike raises concerns for homebuyers.
Mortgage rates have taken a turn upward after a period of decline, following unexpected inflation figures released for October.
On Thursday, November 12, 2026, rates jumped by 12 basis points to 7.42%, according to Mortgage News Daily. This uptick follows another substantial increase of 12 basis points earlier in the week, as the latest inflation data indicated a continued rise in prices across a wide spectrum of goods and services. The bond market was closed for Veterans Day on Wednesday, preventing additional fluctuations during that time.
Market Reactions and Expert Opinions
Mortgage rates are closely tied to Treasury yields, which have recently surged. Investors are now expressing doubts regarding the Federal Reserve's ability to control inflation rates effectively. According to Jiayi Xu, senior economist at Realtor.com, homebuyers face significant pressure stemming from high mortgage rates combined with persistent inflation, with inflation posing a long-term dilemma.
While inflation has been on the rise, Freddie Mac reported a temporary decrease in mortgage rates, which fell to 7.11% for the week up to Wednesday. This decline came before the recent inflation data impacted the bond market.
Today's Mortgage Rates
Below are the current purchase mortgage rates as of today, according to Zillow data:
- 30-year fixed: 7.09%
- 20-year fixed: 6.87%
- 15-year fixed: 6.53%
- 5/1 ARM: 7.02%
- 7/1 ARM: 6.59%
- 30-year VA: 6.29%
- 15-year VA: 5.85%
- 5/1 VA: 6.21%
Refinance Mortgage Rates
For those considering refinancing, here are the current refinance mortgage rates:
- 30-year fixed: 7.00%
- 20-year fixed: 6.72%
- 15-year fixed: 6.50%
- 5/1 ARM: 7.06%
- 7/1 ARM: 6.52%
- 30-year VA: 6.58%
- 15-year VA: 5.91%
- 5/1 VA: 6.19%
Understanding Mortgage Rates
Mortgage rates are influenced by a mix of controllable and uncontrollable factors. On one hand, consumers can enhance their chances of securing lower rates by comparing lenders and improving their financial profile through higher credit scores or larger down payments.
On the other hand, economic conditions play a significant role in determining mortgage rates. In times of economic struggle, lower rates are often implemented to stimulate borrowing. Conversely, a strong economy tends to see rising mortgage rates to prevent overheating.
It is also worth noting that refinance rates are generally slightly higher than those for new purchase mortgages.
Choosing the Right Mortgage Term
When considering mortgage options, the two most common terms are the 30-year and 15-year fixed-rate mortgages. The 30-year option offers lower monthly payments, making it more manageable in the short term, although it typically comes with a higher overall interest cost over time.
The 15-year mortgage, while requiring higher monthly payments, usually carries a lower interest rate, ultimately resulting in less paid in interest over the life of the loan.
FAQs on Mortgage Rates
Which bank offers competitive mortgage rates? According to recent surveys, Chase and Citibank are among banks offering some of the lowest mortgage rates. However, it's advisable to shop around across various lenders and credit unions.
Is a 2.75% mortgage rate favorable? Absolutely. Achieving a 2.75% rate is highly uncommon in the current market unless it's through an assumable mortgage from a prior seller.
What's the historical low for mortgage rates? The national average for the lowest 30-year fixed mortgage rate, recorded by Freddie Mac, was 2.65% in January 2021. It's unlikely to dip below 3% in the near future.
When should I consider refinancing? Experts suggest refinancing is beneficial when you can secure a rate 1-2% lower than your current rate. The decision depends on various factors such as how long you plan to remain in your home and the associated closing costs with refinancing.
The mortgage rates detailed are averages as of November 11, 2026, and are rounded to the nearest hundredth.