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 โคexceeding 18% โfor certain loan products as of November 19, 2025.While historically, rates have been โฃsubstantiallyโ higher – โฃreaching peaks above โ18% in โฃthe early 1980s – this current level presents challenges โforโ prospective homebuyers and those looking to refinance.
This situation is particularly tough for โฃhomeowners who secured historically low ratesโ during the pandemic. These low โขratesโ areโ now effectively “golden handcuffs,” discouraging many from selling their homes and perhapsโ moving, even if theyโฃ otherwise would.
Factorsโ Impacting Mortgage Interest Rates
Several key factors are โฃcontributing to the current rate environment. The overall health of the U.S.economy remains โฃa primary driver. Lenders anticipate potential inflation and adjust rates โคaccordingly to protectโ profitability.
The national debt also exerts upward pressure โon interestโ rates, as government borrowing โขincreases demand andโ costs in the โคfinancial markets.
Demand for home loansโ plays a role as well. Lower application volume may prompt lenders to offer slightly reduced rates to attractโ borrowers, while high demand allows them โto increase โฃrates.
The Federal Reserve’s monetary policy is also influential. Changes โฃto the federal funds rate often correlate with movements in mortgage rates,though the โขrelationship isn’t always direct.Currently,โฃ theโ Fed’s actions regarding its balance sheetโ – specifically, allowing assets like mortgage-backed securities (MBS) toโ mature without replacement – are contributing to the upward pressure on rates. โคโ Experts suggest โฃthis balance sheet management mayโฃ be even more impactfulโ than direct adjustments toโค theโค federal funds rate.
The Importance of Rate Comparison
Given the โคcurrent market conditions,โ comparing mortgage rates from different โlenders and exploring various loanโฃ types is more critical than ever.
Conventional mortgages areโ frequently enoughโค theโฃ best option forโฃ borrowers with excellent credit. However, for those with credit scores below 600, an FHA loan mayโ provide access to homeownershipโ that would otherwise be unavailable.
Recent research from Freddie Mac indicates that shopping around can โyield critically important savings. Homebuyersโ who apply with multiple lenders in a high-interest rate โenvironment could potentiallyโฃ save betweenโฃ $600 and $1,200โค annually.
