Despite recent Federal Reserve cuts, mortgage rates keep climbing, presenting challenges for potential homeowners. As of November 8, the average 30-year fixed-rate mortgage hit 6.79%, continuing its steady rise over recent weeks after a temporary dip in September, when rates fell to their lowest in two years.

The main factor driving these recent increases is the volatility in the 10-year Treasury yield, which rose from 3.72% in September to 3.99% in October. This spike was influenced by weaker-than-expected labor reports—largely due to disruptions from two hurricanes and a Boeing strike. Uncertainty surrounding the recent presidential election and concerns over budget deficits have also played a key role in keeping mortgage rates high.

The National Association of Home Builders (NAHB) previously predicted sub-6% mortgage rates by the second quarter of 2025. However, this forecast may be revised depending on evolving fiscal policies and the final election outcome. Until affordability conditions improve, many potential buyers are expected to stay on the sidelines, hoping for a future rate decline to make homeownership more accessible.