Welcome to Mortgage Porter Weekly for the first week of November 2026! Each Monday, I break down where mortgage rates have been trending and what may move them in the week ahead. This week: the Fed holds steady with two dissenters, it’s jobs week, and our spotlight is on down payment assistance — what to know before you choose a program.
Recap From Last Week
The Fed kept its benchmark Fed Funds Rate unchanged, following September’s quarter-point hike. As a reminder, the Fed Funds Rate is the overnight rate banks charge each other — it’s not the same as mortgage rates. The hold was widely expected, but the vote wasn’t unanimous: two members dissented in favor of another quarter-point increase.
Inflation was in line with expectations but remains above the Fed’s 2% target. Headline PCE inflation rose 3.6% over the past year, while core inflation, which excludes food and energy, rose 3.1%. The Fed will keep weighing inflation and labor market conditions as it makes future decisions.
In housing, new home sales slipped 0.6% in September to an annualized pace of 676,000, beating expectations but down 5.3% from a year earlier. The median new-home price fell 3.9% year over year, but that doesn’t necessarily mean home values are declining. More buyers purchased homes priced between $300,000 and $400,000, while sales of homes above $600,000 fell, and that shift pulled the median down. Broader measures are still rising, with national prices up 2.1% over the past year according to Case-Shiller.
Finally, the economy grew at an annualized rate of 3.4% in the third quarter, up from 2.2% in the second, supported by consumer spending and business investment, including continued investment in AI data centers.
Where Mortgage Rates Are Trending
Optimal Blue’s index showed the average 30-year fixed rate improved slightly as of last Friday, October 30, compared with the previous update. Watch the video for the latest figure.
Please keep in mind that this index reflects about 35% of mortgage transactions nationwide (lenders who use Optimal Blue). It’s not a rate quote, and you can’t lock last week’s rates today. Your credit score, loan-to-value, and other factors will affect the rate you qualify for. It’s simply meant to give you an idea of which way rates are trending.
On the mortgage-backed securities (MBS) front, as of about 10 a.m. Monday, MBS were up slightly — a sign that mortgage rates may be improving.
This Week’s Economic Calendar
It’s jobs week! Both ADP and the BLS are expected to show 65,000 jobs added for October. The revisions in Friday’s BLS report could be just as impactful.
- Tuesday: JOLTS
- Wednesday: ADP Employment (65,000 jobs expected)
- Thursday: Jobless Claims
- Friday: BLS Jobs Report (65,000 jobs expected, unemployment unchanged at 4.2%) and Consumer Sentiment
Next FOMC meeting: December 8–9, 2026.
Spotlight: Down Payment Assistance Programs
Down payment assistance programs (DPAs) and grants are getting more attention, including Zillow’s recently promoted program. That’s great — but it’s important to understand the terms before you commit.
- Required first mortgage: With a DPA, you’re often required to use a specific first mortgage, which may carry a higher rate than you’d get without assistance — sometimes due to price adjustments for a lower down payment, sometimes because the program itself has a higher rate.
- “Forgivable” doesn’t mean immediate: Some programs, like Zillow’s, are forgivable after a set period. As I understand it, Zillow’s requires you to keep your first mortgage for five years. Sell or refinance sooner and you would repay the assistance, or you’d have to wait and possibly miss a refinance opportunity.
- Second mortgages: Some programs are structured as a second loan. Some carry interest; others are zero-interest but paired with a higher first-mortgage rate.
- Bundled options: Some programs combine assistance with installing energy-efficient solar panels.
- Eligibility rules: Some require you to be a first-time homebuyer. Others, like the WSHFC’s Covenant Homeownership Program, are for those whose ancestors experienced housing discrimination, such as redlining.
As the old saying goes, there’s no such thing as free money. Understanding the true cost — whether that’s a higher rate or a commitment to keep the loan for years — helps you make a decision that works for you.
Read more: How to Choose a Down Payment Assistance Program
Let’s Talk
That’s a wrap! If I can answer any questions or help with a purchase, refinance, or restructuring debt — even if you’re months away from making a move — please reach out. Also, don’t forget to vote tomorrow, and go Seahawks!
Optimal Blue data reflects about 35% of mortgage transactions nationwide and is not a rate quote. Rates and programs are subject to change and depend on individual qualifications. This is not a commitment to lend.
About Rhonda Porter
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