Mortgage rates near 7%: refinance, wait or rent?

Mortgage rates remain near 7%. Zillow's average 30-year fixed was 7.04% on November 5, down 6 basis points from the day before. Bankrate's weekly lender survey put the average at 7.26%. Surveys differ in method, so compare like with like.

Refinance break-even

Divide the closing costs by monthly savings. For example, on a $300,000 balance, a drop from 7.26% to 6.5% cuts the principal-and-interest payment by roughly $150 a month. If refinancing costs $4,500, you break even in about 30 months. If you may move sooner, it likely does not pay.

Rent vs buy

Compare total monthly ownership cost (payment, taxes, insurance, maintenance) with rent, then add the opportunity cost of your down payment. At 7%, the gap often favors renting in expensive markets, but buying can win if you stay a long time and rents are rising.

Ways to lower your rate

Improve your credit score before applying.
Shop at least three lenders and compare APR and fees.
Consider points if you will keep the loan long enough to recover the cost.
Ask about adjustable-rate options only if you understand the reset risk.

Direction

Mortgage rates follow longer-term Treasury yields. Inflation data and Fed signals move them. Nobody can time the bottom reliably.

Educational content, not investment advice. Figures as reported on November 9, 2026; check primary sources before acting.