Mortgage Rates Today, Friday, September 25: A Little Relief, but Still Above 7%

It’s not a big enough dip to counteract recent upward trends, but mortgage interest rates are a little lower today.

The average interest rate on a 30-year, fixed-rate mortgage ticked down to 7.23% APR, according to rates provided to BW by Zillow. This is six basis points lower than yesterday but 19 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

While the economy never sleeps, markets are closed on the weekends. The rates you see Friday are unlikely to change much (if at all) until Monday.

Lately, mortgage rates have risen above 7% as inflation puts upward pressure on financial markets. For more on what’s affecting mortgage rates right now, keep 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, since a major part of how rates are set depends on reactions to new inflation reports, job numbers, Fed meetings, global news … you name it. For example, even tiny changes in the bond market can shift mortgage pricing.

Right now, bond markets are feeling upward pressure from inflation, which in turn sends mortgage rates higher. In an effort to cool rising prices, the Federal Reserve raised its benchmark rate by 25 basis points at its September meeting. The Fed doesn’t set mortgage rates, but financial markets watch closely for clues about its next move.

Changes to the federal funds rate ripple out through the economy. With two more Fed meetings on the calendar before the end of 2026, the question remains: How quickly — and how much — will the Fed need to raise rates to tame inflation? That uncertainty is making financial markets jumpy. Next week, we’ll get some data that will bring the economic picture into clearer focus.

• Inflation: On Wednesday, we’ll get another pulse check on where inflation stands with August’s Personal Consumption Price Index. PCE’s the Fed’s preferred measure of inflation, and if it comes in above predictions that could spell more rate hikes — and even higher mortgage rates — ahead.

• Employment: On Friday, the release of the Job Openings and Labor Turnover Survey for August will signal the strength of the labor market. If employment holds steady, the Fed may see room for more rate hikes without putting the economy at risk.

Rate hikes from the Fed aren’t a bad thing. They’re intended to keep inflation under control, which eventually could bring mortgage rates down, too. So if you’re wondering if you should root for a weak jobs report to avoid Fed rate hikes… ugh, don’t be that guy. A weak labor market coupled with high inflation spells trouble for just about everyone. It’s a tough mix that can squeeze household budgets, rattle markets and leave the Fed with even fewer good options.

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Consider a refinance if your current rate is 7.73% or higher, but keep in mind your financial goals. Whether you want to lower your monthly payment, shorten your loan term, or tap into home equity, it’s important to weigh the overall costs. Use BW’s refinance calculator to estimate savings and break-even points.

When it comes to shopping for a home, focus on what you can comfortably afford at today’s rates rather than trying to time the market. Get preapproved, compare lender offers, and determine a monthly payment that fits your budget. Strengthen your buyer profile by paying down debts and saving for a down payment.

If you have a mortgage rate quote you’re happy with, consider locking it in to protect against market fluctuations. Some lenders offer a float-down option to take advantage of better rates if they drop during the lock period. Remember that rates can change daily, so committing to a deal you’re satisfied with is a smart move.

The advertised rates online are often sample rates for borrowers with excellent credit, large down payments, and mortgage points. Keep this in mind when comparing rates and quotes for your specific financial situation. document in a way that is easier to understand for the average reader:

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