Mortgage Rates Are Back Above 7%
After holding below 7% for most of the past year and a half, the average 30-year fixed mortgage rate climbed back above that mark in late September, according to Freddie Mac’s benchmark survey. It’s the first time rates have crossed 7% since January 2025, and the fifth straight week of increases.
The move traces back to the bond market. The 10-year Treasury yield, which mortgage rates closely track, surged to its highest level since 2007 in September as stronger-than-expected economic data and persistent inflation concerns pushed investors to demand higher returns. Rising oil prices added further pressure. The Federal Reserve’s quarter-point rate increase in mid-September, its latest move in an ongoing effort to keep inflation in check, added to the upward momentum as well. A separate industry survey put the 30-year rate even higher, at 7.12%, the highest reading since 2024.
Crossing 7% can tend to make buyers pause, even though the real difference between 6.9% and 7.1% on a monthly payment is fairly modest. That psychological shift is arriving right as the usual fall slowdown starts handing buyers a bit more negotiating room than they had over the summer.
Even with rates back above 7%, the fall market hasn’t ground to a halt. Buyers are leaning on adjustable-rate mortgages more than they have in years to manage their initial payments, and sellers, especially those who have been sitting on the market a while, are increasingly willing to negotiate on price, terms, or both. None of that erases the impact of higher rates, but it does mean there’s still real opportunity for buyers and sellers who come in prepared.
Mortgage Rates From 2020 to Today
Year | Average 30-Year Fixed Rate
2020 | 3.11%
2021 | 2.96%
2022 | 5.34%
2023 | 6.81%
2024 | 6.72%
2025 | 6.62%
2026 (through late September) | 7.03%
Seen against that backdrop, today’s rates sit well above pandemic-era lows but still below the peaks hit in late 2023.
Whether you’re weighing a purchase at today’s rates, wondering if now’s the right time to sell, or rethinking an investment given where rates stand, reach out anytime. I am always happy to help you run the numbers for your specific situation!
