Mortgage Rates Ease to About 7.09% After Midterms as Housing Stocks Slip in Thursday Risk-Off Tape

U.S. mortgage rates moved lower after Wednesday's post-election jump in homebuilder shares, while housing stocks and real estate investment trusts slipped modestly on Thursday, Nov. 5, 2026, as a broad risk-off session on Wall Street overshadowed the further decline in borrowing costs.

Rates ease after the midterm vote

According to Mortgage Research Network, the average 30-year fixed purchase rate was 7.09% on Wednesday, down 0.07 percentage point from the prior day. The 15-year fixed rate stood at 6.3%, down 0.02 point. The 30-year FHA average fell 0.04 point to 6.58%, the 30-year VA rate dropped 0.10 point to 6.64%, and the 30-year jumbo average declined 0.06 point to 7.32%. The 5/6 ARM averaged 6.67%.

Refinance rates also eased, with the 30-year fixed refinance average at 7.15%, down 0.10 point. Mortgage Research Network attributed the moderate decline mainly to the midterm election outcome, noting that markets had not expected so decisive a result. The site also said relief for mortgage rates may prove brief and that much depends on how the Iran conflict evolves, because higher energy prices can keep inflation and bond yields elevated.

Even after the latest drop, rates remain historically high compared with a year ago. The Mortgage Bankers Association's weekly survey on Wednesday put the average 30-year contract rate at 7.3% for the week ended Oct. 30, while Realtor.com has noted that the same MBA measure averaged about 6.17% a year earlier. Freddie Mac's separate weekly survey last week listed the 30-year rate at 7.24%.

Wednesday's housing rally in review

Yahoo Finance reported that at Wednesday's close, Lennar and PulteGroup were each up more than 7% and D.R. Horton rose more than 8% after Democrats won control of both chambers of Congress. Home Depot finished Wednesday up 6.5% after spiking as much as 17% midday, and Lowe's ended up 7.5% after a midday surge near 15%. The S&P 500 gained about 1.6% Wednesday and the Dow rose about 3%, or more than 1,500 points.

TPE Hub, citing Yahoo Finance economics coverage, similarly described an roughly 8% midday advance for Lennar, D.R. Horton and PulteGroup on Wednesday and said the 10-year Treasury yield moved slightly lower as investors weighed possible housing-affordability legislation. Analysts quoted in that coverage pointed to potential down-payment help, grants and tax benefits, while also cautioning that major changes may be hard to enact under divided government.

Yahoo Finance quoted Ronald Gestiehr of Luttner Financial Group as saying builders still face higher material costs, labor shortages, land prices, permitting, insurance and financing costs, alongside mortgage rates that limit what buyers can afford. He said investors may be anticipating more attention to affordability policies, but that earnings still need better demand and margins to justify higher stock prices.

Thursday's tape: builders and REITs ease

As of about 12:08 p.m. ET on Thursday, the post-election housing bounce was giving way to a softer session. D.R. Horton was little changed at about $156.92, Lennar was down about 0.8% near $91.44 and PulteGroup was down about 0.8% near $134.90, according to Yahoo Finance data. The iShares U.S. Home Construction ETF was about 1.6% lower near $98.72, and the SPDR S&P Homebuilders ETF was down about 2.7% near $104.58. The Vanguard Real Estate ETF slipped about 1.6% to about $96.44. Home Depot was down about 1.0% near $351.76 and Lowe's about 0.8% near $227.63.

The pullback came as major U.S. equity indexes sold off, with the Nasdaq Composite down about 4.5% midday and the S&P 500 down about 3.3%. Housing shares, which had outperformed Wednesday, moved more in line with the broader risk-off tone even as bond yields continued to ease.

Yields and the Fed backdrop

The 10-year Treasury yield, a key benchmark for 30-year mortgages, was about 4.835% as of about 12:08 p.m. ET, down from about 4.894% previously, according to Yahoo Finance data on the ^TNX index. Mortgage Research Network said the CME FedWatch tool put the chance of a Federal Reserve hike at the Dec. 19 meeting at about 82.7% on Wednesday evening, up from about 78.4% on Tuesday evening. The Fed left its target range at 3.75% to 4.00% at its Oct. 28 meeting after hiking in September.

Thursday's economic calendar included third-quarter nonfarm productivity and weekly jobless claims. Mortgage Research Network said markets had expected productivity growth near 2.9% and claims near 197,000. Separate reporting later Thursday showed stronger productivity and lower unit labor costs, with claims coming in softer than many forecasts, a mix that can influence near-term rate expectations ahead of Friday's October employment report.

For homebuyers, the combination of slightly lower mortgage quotes after the midterms and a softer Thursday for housing equities leaves the sector digesting a large one-day gain rather than extending it. Rates near 7% remain well above year-ago levels, and analysts continue to stress that supply constraints, construction costs and affordability limits are still the core housing story beyond any single session's stock moves.

Sources: Mortgage Research Network, Nov. 5, 2026; Yahoo Finance, Nov. 5, 2026; TPE Hub / Yahoo Finance economics, Nov. 5, 2026; Mortgage Bankers Association via prior reporting, Nov. 4, 2026; Yahoo Finance market data as of about 12:08 p.m. ET.