Post-election bond market calm and easing Treasury yields pull borrowing costs to their lowest level in a month
Wednesday’s midterm elections, which handed Democrats control of both the House and the Senate, helped pull bond yields lower and contributed to a third consecutive week of declining mortgage rates.
The 30-year fixed-rate mortgage averaged 7.18% for the week ending November 5, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS).
This marks the third straight weekly decline from an October peak that mortgage rates surge to their highest level in nearly three years had reached on the back of persistent bond market volatility.
The 15-year fixed-rate mortgage, favored by homeowners seeking to refinance, fell to 6.57% from 6.60% the prior week.
Both benchmarks remain sharply higher than a year ago, when the 30-year averaged 6.22% and the 15-year 5.50%.
“Mortgage rates continued their downward trajectory this week, improving the environment for prospective homebuyers against a backdrop of strong economic growth,” said Sam Khater, chief economist at Freddie Mac in McLean, Virginia.
Election aftermath and bond markets drive the retreat
The November 5 midterm elections, in which Democrats reclaimed both the House and the Senate, helped ease sentiment in the bond market.
The 10-year Treasury yield, which mortgage rates broadly track, dropped to 4.84% at midday Thursday, its lowest level since early September, well off the 5.30%+ readings logged in early October.
That runup had sent US mortgage rates inching toward 7% through August and September before cresting in early October.
Marty Green of Polunsky Beitel Green says a Democrat-controlled Congress and Republican White House may still find common ground on housing affordability, supply, and inventory challenges as both parties look for practical policy wins. https://t.co/k6NdVPtufY
— Mortgage Professional America Magazine (@MPAMagazineUS) November 5, 2026
Whether the recent easing has legs is another matter. “Whether the forces keeping bond yields elevated — government deficits, geopolitical impacts on prices, and corporate borrowing to fund AI spending — could sustainably fade remains an open question,” said Kara Ng, senior economist at Zillow in Seattle, Washington.
The listings platform sees mortgage rates staying above 7% for the remainder of 2026 and through mid-2027.
Buyers still waiting for a clearer signal
Three consecutive weeks of declines have done little to revive the broader market.
High mortgage rates have kept the US housing market subdued throughout 2026, and October’s data confirms the pressure is ongoing: pending sales fell 10.5% year over year, the steepest annual drop in three years.
Meanwhile, new listings slipped 7.5% over the same period as sellers pulled back in response to weak demand.
Since rates briefly dipped to 5.98% in late February before the US-Iran conflict drove borrowing costs higher, monthly payments on a $400,000 loan have risen by roughly $300 to $350.
US home sales remain near 30-year lows, while mortgage applications for home purchases declined 2% in the week through Friday from a week earlier, according to the Mortgage Bankers Association (MBA).
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
