Mortgage Rates Today, Monday, September 28: A Little Lower, But Still Above 7%

Although the dip in mortgage interest rates today isn’t significant, it’s worth noting that the average interest rate on a 30-year, fixed-rate mortgage has decreased to 7.14% APR. This is nine basis points lower than yesterday and two basis points lower than a week ago. (See our chart below for more details.) A basis point represents one one-hundredth of a percentage point.

In recent times, mortgage rates have surpassed 7% due to inflationary pressures on financial markets. To learn more about the current factors influencing mortgage rates, continue reading below the chart.

Average mortgage rates, last 30 days

🤓 Kate on Rates: September 24, 2026

📈 What influences mortgage rates?

Mortgage rates are constantly changing, as they are heavily influenced by reactions to new inflation reports, job numbers, Fed meetings, global news, and various other factors. Even small fluctuations in the bond market can impact mortgage pricing.

Currently, bond markets are experiencing upward pressure from inflation, leading to higher mortgage rates. In an attempt to curb inflation, the Federal Reserve raised its benchmark rate by 25 basis points at its September meeting. Although the Fed doesn’t directly control mortgage rates, financial markets closely monitor its actions for signals about future rate changes.

Changes in the federal funds rate have ripple effects throughout the economy. With two more Fed meetings scheduled before the end of 2026, the uncertainty lies in how quickly and significantly the Fed may need to raise rates to combat inflation. This uncertainty is causing volatility in financial markets. This week, upcoming data releases will provide more clarity on the economic landscape.

• Inflation: Wednesday’s release of August’s Personal Consumption Price Index will offer insights into the current inflation levels. If the PCE exceeds expectations, it could lead to more rate hikes and higher mortgage rates in the future.

• Employment: Friday’s Job Openings and Labor Turnover Survey for August will indicate the strength of the job market. Stable employment figures could provide room for further rate hikes by the Fed without jeopardizing the economy.

Rate hikes by the Fed are aimed at controlling inflation, which could eventually lead to lower mortgage rates. So, while you may be tempted to hope for a weak jobs report to avoid rate hikes, it’s crucial to understand that a weak labor market coupled with high inflation is detrimental to everyone. This combination can strain household budgets, unsettle markets, and limit the Fed’s policy options.

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Considering refinancing may be a good idea if today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate (assuming you plan to stay in your home long enough to recoup closing costs).

Given the current rate environment, it could be worth exploring a refinance if your existing rate is around 7.73% or higher, although this may not apply to many individuals.

It’s also important to consider your objectives: Do you aim to reduce your monthly payment, shorten your loan duration, or access home equity? For instance, you might be willing to accept a higher rate for a cash-out refinance compared to a rate-and-term refinance, as long as the overall costs are lower than adding a HELOC or home equity loan to your original mortgage.

To find a lower rate, use BW’s refinance calculator to estimate savings and determine how long it would take to break even on refinancing costs. If you can comfortably afford a mortgage at today’s rates, it may be a good time to start shopping for a home. Don’t worry about potentially missing out on lower rates in the future, as you can always refinance later. Focus on getting preapproved, comparing lender offers, and figuring out a monthly payment that fits your budget. BW’s affordability calculator can help you estimate your potential monthly payment. If buying a new home isn’t feasible right now, work on paying down debts and saving for a down payment to improve your buyer profile and potentially get a better interest rate in the future.

If you have a quote you’re satisfied with, consider locking in your mortgage rate, especially if your lender offers a float-down option. Rate locks protect you from rate increases during the loan processing period, providing peace of mind amidst market fluctuations. Remember that rates can change frequently, so if you’re happy with your offer, it’s wise to commit to it.

The rate you see advertised online is typically a sample rate for borrowers with excellent credit, a large down payment, and paying for mortgage points. This may differ from the quote you receive based on your individual financial situation and loan terms. sentence: The cat sat lazily in the sun, enjoying the warmth on its fur.

Rewritten sentence: Basking in the sun’s warmth, the cat sat lazily, relishing the feeling on its fur.