- Mortgage rates remain above 7% as buyers head into the final days of September, making the rate attached to a new loan an important part of the cost calculation before submitting an offer.
Mortgage rates remain elevated on Monday, Sept. 28, with the latest daily averages showing the 30-year fixed mortgage rate around 7.2%, while refinance rates vary depending on the source and borrower profile.
Bankrate's Sept. 28 national average puts the 30-year fixed purchase rate at 7.22%, while its 30-year fixed refinance average is 7.18%. Mortgage Research Center data cited by Fortune puts the 30-year conventional rate at 7.36% on the same day.
The latest figures put the average 30-year fixed refinance rate at 7.65%, based on Zillow data, up 14 basis points from the prior week. The difference between the published averages highlights an important point for buyers: there is no single mortgage rate that every borrower receives.
Actual offers depend on the lender, credit profile, loan type, down payment, property, and other factors. Freddie Mac's most recent weekly survey, released Sept. 24, showed the average 30-year fixed mortgage at 7.03% and the 15-year fixed rate at 6.42%. The 30-year average had risen from 6.95% a week earlier.
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Mortgage Rates Are Moving Higher as Treasury Yields Rise
The recent increase in mortgage rates has come as longer-term Treasury yields have moved higher. The Federal Reserve raised its target federal funds rate range by a quarter percentage point on Sept. 16 to 3.75%-4%, saying inflation remained elevated. But mortgage rates do not simply follow the Fed's policy rate one-for-one.
Long-term mortgage pricing is more closely linked to the bond market, particularly longer-dated Treasury yields. That is one reason home-loan rates can rise even when the federal funds rate is unchanged.
The higher borrowing costs have a direct effect on monthly payments. Freddie Mac's mortgage-rate guide estimates that principal and interest on a $300,000 30-year mortgage would be about $1,996 a month at 7% and approximately $2,098 at 7.5%, excluding taxes, insurance and other housing costs.
That $102 monthly difference adds up to more than $1,200 a year before considering the other costs associated with homeownership.
For buyers preparing to submit an offer, the rate therefore needs to be evaluated alongside the purchase price. A lower home price can offset some of the impact of a higher mortgage rate, while a more expensive property can increase the payment even if the rate is unchanged.
The rate quoted by a lender also may not be identical to a national average. The Consumer Financial Protection Bureau says credit score and credit history can affect both mortgage eligibility and the interest rate offered.
What Buyers Should Check Before Making an Offer
Buyers should compare the interest rate with the annual percentage rate, points, lender fees, and estimated closing costs. Two lenders can advertise similar rates while producing meaningfully different total borrowing costs because of differences in fees or discount points.
The down payment can also affect the terms. The CFPB says a larger down payment generally can improve the rate offered and the likelihood of approval, although requirements differ by loan type and lender.
Loan type is another important variable. Bankrate's Sept. 28 data show national averages of 6.93% for 30-year FHA loans, 6.99% for 30-year VA loans and 7.31% for 30-year jumbo loans, compared with 7.22% for its conventional 30-year average.
Those figures are national averages rather than guaranteed offers, so buyers should not assume that a quoted rate will match a published benchmark. The recent refinance market coverage also shows why the direction of rates has become important for existing homeowners, particularly those who are waiting for borrowing costs to move lower.
For a buyer preparing to send an offer, the most useful approach is to calculate the payment using the actual rate and loan terms available from the lender rather than relying solely on a national average. A buyer considering a $300,000 30-year mortgage, for example, would see principal-and-interest payments of roughly $1,996 at 7% versus $2,098 at 7.5%, based on Freddie Mac's calculations.
Mortgage rates could continue to move as Treasury yields, inflation expectations, and economic data change. The Federal Reserve's next policy decisions will also remain relevant, but the daily rate available to a specific borrower can differ from the broader direction of monetary policy.
For now, the latest numbers show that 7% remains an important threshold in the US mortgage market. Buyers sending offers should therefore account for the full monthly payment, compare lender terms, and make sure the financing assumptions behind the offer match the rate they can actually obtain.