{"id":185820,"date":"2025-11-26T11:53:47","date_gmt":"2025-11-26T18:53:47","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=185820"},"modified":"2025-11-26T11:53:50","modified_gmt":"2025-11-26T18:53:50","slug":"mortgage-rates-drop-to-three-year-lows-nov-2025","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/mortgage-rates-drop-to-three-year-lows-nov-2025","title":{"rendered":"Mortgage Rates Fall to a Three-Year Low\u2014Will They Keep Dropping?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Mortgage rates fell sharply Tuesday, bringing the average rate back near the 2025 lows from late October\u2014levels investors have not seen since late 2022.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The drop was steep, even more than the bond market alone would suggest. Most of the improvement stems from a few data points, namely, another soft ADP employment report and market reaction to rumors that Kevin Hassett, current Director of the National Economic Council and viewed as rate-friendly, may become the next Fed chair.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">The 10-year Treasury <\/span><span data-preserver-spaces=\"true\">touched<\/span><span data-preserver-spaces=\"true\"> below 4% <\/span><span data-preserver-spaces=\"true\">as yields fell<\/span><span data-preserver-spaces=\"true\"> after New York Fed President John Williams signaled the Fed may cut rates at its final 2025 meeting next month.<\/span><span data-preserver-spaces=\"true\"> Fed funds futures traders <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">increased their bets<\/span><\/a><span data-preserver-spaces=\"true\"> following Williams\u2019 remarks for a December cut to a 70% likelihood.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In other major mortgage news, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/wrenews.com\/fannie-and-freddie-conforming-loan-limits-raised-for-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">FHFA raised the 2026 conforming loan limit<\/span><\/a><span data-preserver-spaces=\"true\"> to $832,750\u2014up $26,250 from 2025. High-cost areas now reach $1,249,125 (150% of the baseline). The increase reflects slower but still positive home-price <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-appreciation-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appreciation<\/span><\/a><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">Most lenders will begin accepting loan applications <\/span><span data-preserver-spaces=\"true\">with<\/span><span data-preserver-spaces=\"true\"> the increased loan limits <\/span><span data-preserver-spaces=\"true\">beginning<\/span><span data-preserver-spaces=\"true\"> immediately<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">or in the coming week.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">According to Zillow, today\u2019s rates equaled the lowest of 2025, with<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/mortgages\/article\/mortgage-refinance-rates-today-tuesday-november-25-2025-110003871.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> the average 30-year rate at 6.06%<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What to Expect for 2026<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Our fearless forecast is for the Fed\u2019s independence to soften sharply in 2026 and for rates to gradually reach levels that will drive a potential stampede of investment through the end of the current administration.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mortgage rates fell sharply Tuesday, bringing the average rate back near the 2025 lows from late October\u2014levels investors have not seen since late 2022.&nbsp; The drop was steep, even more [&hellip;]<\/p>\n","protected":false},"author":613785,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-185820","post","type-post","status-publish","format-standard","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613785"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=185820"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/185820\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=185820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=185820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=185820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}