Mortgage rates just did something they have not done in a while: they fell for a third week in a row. On Thursday, November 5, 2026, Freddie Mac reported that the average 30-year fixed rate slipped to 7.18 percent, down from 7.24 percent a week earlier. That is not a dramatic move on its own, but in the Bay Area, where loan amounts are measured in millions rather than hundreds of thousands, even a few hundredths of a percentage point show up in real dollars every month.
So what does a 7.18 percent rate actually mean for someone buying a home in San Jose, Santa Clara County, or anywhere in Silicon Valley this November? And what should sellers take from it as the market heads into the holidays? Below, I walk through the latest numbers, translate the rate move into monthly payments at local price points, and explain how buyers and sellers can use this moment.
The headline: three straight weeks of lower rates
Here is what Freddie Mac’s Primary Mortgage Market Survey showed for the week ending November 5, 2026:
- 30-year fixed: 7.18 percent, down from 7.24 percent last week. A year ago it was 6.22 percent.
- 15-year fixed: 6.57 percent, down from 6.60 percent last week. A year ago it was 5.50 percent.
Freddie Mac Chief Economist Sam Khater summed it up simply: “Mortgage rates continued their downward trajectory this week,” adding that the trend is “improving the environment for prospective homebuyers.”
Daily rate data points the same way. Zillow’s lender marketplace figures, published by Yahoo Finance on November 5 and current as of the afternoon of November 4, showed a national average 30-year fixed purchase rate of 7.04 percent, down 11 basis points from a week earlier, and a 15-year fixed of 6.38 percent. Adjustable-rate loans also eased, with the 5/1 ARM averaging 6.81 percent, down 29 basis points in a week. (If you are curious whether an ARM makes sense right now, I covered that question in detail in yesterday’s post, ARMs Are Back: Should Bay Area Buyers Consider an Adjustable-Rate Mortgage?)
Rates are still about a full percentage point above last year’s level, but the direction matters. Three weeks of declines gives buyers some breathing room and a reason to start preparing.
A quick note on what these averages measure
Freddie Mac’s weekly survey tracks conventional, conforming loans for borrowers with strong credit who put 20 percent down. Many Bay Area purchases require jumbo or high-balance loans, which can be priced a little differently depending on the lender, your credit, your down payment and your overall relationship with the bank. Treat the national averages as a direction-of-travel signal, and get a personal quote from a lender before you make decisions.
Where the local market stands going into November
Rates are only half the story. Here is the most recent local data available as of this week. October monthly reports for the county have not been released yet, so September is the latest full month.
- Santa Clara County single-family median (C.A.R.): $1,920,000 in September 2026, up 1.1 percent from August and down 4.0 percent from September 2025, according to the California Association of Realtors.
- Santa Clara County single-family median (SCCAOR): $1,880,000 in September, up 1.6 percent from August and down 4 percent year over year, on 726 sales, according to the Santa Clara County Association of Realtors. Sales were up 16.3 percent from August and 3.7 percent from a year earlier, and homes averaged 27 days on market.
- Inventory: C.A.R. reported Santa Clara County active listings up 26.4 percent from a year earlier.
- San Jose metro (Redfin): In the four weeks ending October 18, 2026, Redfin reported the San Jose metro median sale price down 4.7 percent year over year, among the largest declines of the major metros it tracks, while new listings rose 17.7 percent.
- Bay Area region (C.A.R.): The San Francisco Bay Area median was $1,325,000 in September, up 4.2 percent from August and 1.9 percent from a year earlier.
- California (C.A.R.): The statewide median was $899,720, with a median of 29 days on market and a 3.7-month unsold inventory index.
Put together, the picture is a South Bay market that is cooler than last year but far from weak. Prices are a little below last fall, buyers have noticeably more homes to choose from, and homes are taking a bit longer to sell. Now mortgage rates are drifting lower at the same time. For buyers, that combination is a more favorable setup than they have had in months.
What 7.18 percent means in real dollars
Percentages are abstract. Monthly payments are not. The examples below assume a 30-year fixed loan with 20 percent down and show principal and interest only. Property taxes, homeowners insurance and any HOA dues come on top. These are illustrations using Freddie Mac’s weekly averages, not loan quotes.
Example 1: a $1,000,000 condo or townhome
- Loan amount: $800,000
- At 7.18 percent: about $5,419 per month
- At last year’s 6.22 percent: about $4,910 per month
Example 2: a $1,500,000 San Jose single-family home
- Loan amount: $1,200,000
- At last week’s 7.24 percent: about $8,178 per month
- At this week’s 7.18 percent: about $8,129 per month, roughly $49 a month less, or close to $590 a year
- At last year’s 6.22 percent: about $7,365 per month
- On a 15-year fixed at 6.57 percent: about $10,500 per month, a higher payment but far less total interest over the life of the loan
Example 3: a home at the county median of $1,880,000
- Loan amount: $1,504,000
- At 7.24 percent: about $10,250 per month
- At 7.18 percent: about $10,189 per month
- At last year’s 6.22 percent: about $9,231 per month, nearly $960 less than today
A one-week change of six basis points will not transform anyone’s budget. But it adds up. A buyer whose payment was set by last week’s rate on a $1.2 million loan could borrow roughly $1,207,000 this week for the same monthly principal and interest. And because the median Santa Clara County price is down about 4 percent from a year ago, part of the higher rate is being offset by lower prices. On a $1.88 million home, 4 percent is roughly $75,000 off the price tag.
What this means for buyers
The buyers who benefit most from a falling-rate stretch are the ones who are already prepared when the right home comes along. Here is how I would approach the next few weeks.
1. Refresh your pre-approval now
If your pre-approval is more than 60 days old, or was written when rates were higher, ask your lender to update it. A lower rate can raise the price range you qualify for, and a fresh, fully underwritten approval makes your offer stronger with sellers.
2. Use the extra inventory to your advantage
With active listings in Santa Clara County up more than a quarter from last year and San Jose metro new listings up 17.7 percent, buyers can compare more homes side by side. Look closely at homes that have been on the market for a few weeks. Those are often the sellers most open to talking about price, credits for repairs, or help with closing costs.
3. Ask about float-downs and rate buydowns
When rates are trending lower, some lenders offer a float-down option that lets you capture a lower rate before closing. And a seller credit used to buy down your rate can sometimes lower your payment more than an equal price cut. Ask your lender to run both.
4. Do not try to time the bottom
No one can promise where rates will be in January. Three weeks of declines is encouraging, but rates can reverse quickly. A good rule: buy the right home at a payment you are comfortable with today, and treat any future refinance as a bonus rather than a requirement. If you are weighing renting versus owning, my Rent vs. Buy in San Jose: A 2026 Breakdown walks through the math, and first-time buyers can start with the First-Time Homebuyer’s Guide to San Jose.
What this means for sellers
Lower rates bring buyers back into the conversation, and that is good news for sellers. But the market has also shifted toward more choice for buyers, so the details matter more than they did a year ago.
Price for today’s market, not last fall’s
With the county median down about 4 percent year over year and the San Jose metro down 4.7 percent in Redfin’s latest four-week window, pricing off a neighbor’s sale from 2025 can leave a home sitting. Recent, nearby sales are the best guide. Homes that are priced right from day one still attract strong interest and, in many South Bay neighborhoods, still sell quickly.
Prepare the home for comparison shopping
Buyers now have more listings to compare, so condition, presentation and disclosures stand out. A pre-listing inspection, targeted repairs, fresh paint and professional photography help a home draw offers in its first two weeks. A seller-paid rate buydown or closing-cost credit can also widen your buyer pool without cutting your list price.
Listing during the holidays
November and December usually bring fewer listings, which means less competition for sellers who do go to market. The buyers out touring in the holidays tend to be serious, and a falling-rate stretch gives them extra motivation. If you were planning to wait for spring, it is worth a conversation about whether listing now could work in your favor.
City and neighborhood notes
Rate moves land differently depending on where and what you are buying.
San Jose. San Jose has the widest range of price points in the county, from condos and townhomes near downtown and North San Jose to single-family homes in Willow Glen, Almaden Valley, Evergreen and Cambrian. The rising number of new listings shows up most clearly here, so San Jose buyers have more room to compare neighborhoods this fall. Learn more on my San Jose real estate page.
Premium markets. In Palo Alto, Los Altos, Saratoga and Cupertino, loan sizes are large enough that a few basis points translate into meaningful monthly savings, although many buyers in these areas also use substantial down payments or cash. These markets tend to have far fewer homes for sale, so well-priced listings can still draw strong competition.
The wider Bay Area. The Bay Area region’s median rose 4.2 percent from August to September, according to C.A.R., while Redfin data showed San Francisco prices rising and San Jose prices dipping. That split is a good reminder that local, city-by-city data matters far more than headlines.
Frequently asked questions
What is the average 30-year mortgage rate today?
Freddie Mac’s weekly survey released November 5, 2026, put the average 30-year fixed rate at 7.18 percent, down from 7.24 percent the prior week and the third straight weekly decline. The 15-year fixed averaged 6.57 percent. Your own rate depends on credit, down payment, loan size and lender.
How much does a lower rate save on a Bay Area home?
On a $1.2 million loan, the drop from 7.24 to 7.18 percent saves roughly $49 a month in principal and interest. Compared with last year’s 6.22 percent, though, the same loan costs about $764 more per month today, which is why many buyers are watching rates closely.
Are home prices falling in San Jose?
Prices are modestly lower than a year ago. The Santa Clara County single-family median was $1,880,000 in September 2026, down about 4 percent year over year according to SCCAOR, and Redfin reported the San Jose metro median sale price down 4.7 percent year over year in the four weeks ending October 18. Prices still vary a great deal by neighborhood.
Should I wait for rates to drop further before buying?
Nobody can reliably predict rates. Waiting could mean a lower rate, but it could also mean more competition if buyers return in force. Many buyers choose to buy when they find the right home at an affordable payment and plan to refinance if rates fall meaningfully later.
Let’s make a plan with the latest numbers
Rates are moving in the right direction, inventory is up, and prices have eased from last year. For buyers, that is a real opening. For sellers, it is a reason to prepare carefully and price with confidence. Either way, the best decisions come from looking at your specific home, neighborhood and budget, not just national headlines.
If you are thinking about buying or selling in San Jose, Santa Clara County or anywhere in the South Bay, I would love to help you run the numbers and build a plan. Call or text me at 408-477-6262, or visit NajwaRealEstate.com to get started. You can also explore my buyer services.
Najwa Khoury, Real Brokerage, DRE #02026194
Sources
- Freddie Mac, Primary Mortgage Market Survey, “Mortgage Rates Decline for Third Consecutive Week to 7.18%,” November 5, 2026
- Yahoo Finance, “Mortgage and refinance interest rates today, Thursday, November 5, 2026” (Zillow data)
- California Association of Realtors, September 2026 home sales and price report
- Santa Clara County Association of Realtors, Santa Clara County Housing Statistics, September 2026
- Redfin, housing market update for the four weeks ending October 18, 2026
Payment examples are illustrations based on published average rates, assume 20 percent down, and include principal and interest only. They are not loan offers. Contact a licensed lender for a personalized quote.