Mortgage Rates Drop to Lowest in a Month, FHA Loans Follow Suit

Mortgage rates have dipped to their lowest in a month, providing some relief to prospective homeowners following recent electoral results that saw Democrats gain control of Congress.

According to Freddie Mac, the average rate for a 30-year fixed mortgage fell to 7.18% for the week ending November 5, down from 7.24% the previous week. This marks the third consecutive week of declining rates, which offers a modicum of relief from the recent highs. While still notably higher than last year's 6.22%, this trend is encouraging for potential buyers. A median-priced home with a 20% down payment leads to a loan of approximately $344,000, resulting in monthly payments of roughly $2,330 at the current rate — a $14 drop from last week.

FHA Loans See Similar Trends

Federal Housing Administration (FHA) loans are experiencing a similar trend. For buyers with a 3.5% down payment on a $430,000 home, the loan finance amounts to about $414,950. At today's 7.18% rate, monthly payments are approximately $2,811, down by $17 from the previous week. Despite being more costly than in November 2025, when the rate was 6.22%, the decline from last month's peak of 7.79% is significant, saving borrowers $173 each month.

Comparative Mortgage Costs Over Time

The current downward trend in mortgage rates is gradually easing long-term borrowing costs. With today's interest of 7.18%, the total principal and interest for a 30-year fixed loan costs about $838,935. In contrast, the October 2023 peak rate would have totaled $890,630, granting a saving of $51,695 over the life of the loan. FHA loan borrowers benefit similarly, with current rates resulting in $1,011,966 in payments versus $1,074,323 at the peak rate. While these rates are not yet as low as November 2025, the recent declines have improved financial predictability for active homebuyers this fall.