Mortgage rates increased today, with the Consumer Price Index report for August showing persistent high inflation.
The average interest rate on a 30-year fixed-rate mortgage rose to 6.98% APR, based on data provided to BW by Zillow. This represents a 19 basis point increase from yesterday and a 29 basis point increase from a week ago. (Refer to the chart below for more details.) A basis point equals one one-hundredth of a percentage point.
The Federal Reserve aims for a 2% inflation rate as healthy for the economy, but we have been above that since March 2021. The Fed will convene next week on Sept. 15-16. The latest CPI data supports the argument for the committee to raise its benchmark rate by a quarter percentage point. If you’re in the market for a mortgage, it’s advisable to prepare for higher rates in the near future.
While the economy operates round the clock, market activities are halted over the weekends. The rates you observe on Friday are unlikely to undergo significant changes until Monday.
Average mortgage rates, last 30 days
🤓 Kate on Rates: September 10, 2026
📈 What influences mortgage rates?
Several factors have been driving mortgage rates higher recently. Here’s a brief overview of three key influences, all of which ultimately come down to inflation.
This was particularly notable following July, which initially reported a loss of 23,000 jobs. While this figure has been revised upward to a gain of 21,000 jobs, it is still lower than the August numbers.
Although the Federal Reserve does not directly set mortgage rates, its decisions influence the overall direction of mortgage rates. Therefore, if you’re considering a mortgage, be prepared for continued rate increases.
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