Current Mortgage Rates Report – November 19, 2025: Rates Continue Inching Higher
Mortgage interest rates are continuing their upward trend, with some lenders now reporting rates exceeding 18% for certain loan products as of November 19, 2025.While historically, rates have been substantially higher – reaching peaks above 18% in the early 1980s – this current level presents challenges for prospective homebuyers and those looking to refinance.
This situation is particularly tough for homeowners who secured historically low rates during the pandemic. These low rates are now effectively “golden handcuffs,” discouraging many from selling their homes and perhaps moving, even if they otherwise would.
Factors Impacting Mortgage Interest Rates
Several key factors are contributing to the current rate environment. The overall health of the U.S.economy remains a primary driver. Lenders anticipate potential inflation and adjust rates accordingly to protect profitability.
The national debt also exerts upward pressure on interest rates, as government borrowing increases demand and costs in the financial markets.
Demand for home loans plays a role as well. Lower application volume may prompt lenders to offer slightly reduced rates to attract borrowers, while high demand allows them to increase rates.
The Federal Reserve’s monetary policy is also influential. Changes to the federal funds rate often correlate with movements in mortgage rates,though the relationship isn’t always direct.Currently, the Fed’s actions regarding its balance sheet – specifically, allowing assets like mortgage-backed securities (MBS) to mature without replacement – are contributing to the upward pressure on rates. Experts suggest this balance sheet management may be even more impactful than direct adjustments to the federal funds rate.
The Importance of Rate Comparison
Given the current market conditions, comparing mortgage rates from different lenders and exploring various loan types is more critical than ever.
Conventional mortgages are frequently enough the best option for borrowers with excellent credit. However, for those with credit scores below 600, an FHA loan may provide access to homeownership that would otherwise be unavailable.
Recent research from Freddie Mac indicates that shopping around can yield critically important savings. Homebuyers who apply with multiple lenders in a high-interest rate environment could potentially save between $600 and $1,200 annually.
