Mortgage rates have been on the rise since the Federal Reserve’s September meeting, and today they inched up even higher.
The average interest rate on a 30-year, fixed-rate mortgage is now at 6.39% APR, as reported by Zillow to BW. This represents a four basis points increase from yesterday and a 13 basis points increase from a week ago. (Refer to the chart below for more details.) A basis point equals one one-hundredth of a percentage point.
Despite the Fed’s recent rate cut, mortgage rates are climbing. Prior to the Fed meeting, mortgage rates had dropped to their lowest point the day before the rate cut announcement. Although rates have increased since then, they are still lower than most of the rates seen in 2025.
Average mortgage rates over the past 30 days
📉 When can we expect mortgage rates to decrease?
Mortgage rates are constantly in flux, as they are influenced by various factors such as new inflation reports, job figures, Fed meetings, global developments, and more. Even minor changes in the bond market can impact mortgage rates.
This week, we are eagerly anticipating the release of the September jobs report by the Bureau of Labor Statistics on October 3. However, there is a possibility of a government shutdown on October 1, which could potentially delay the report’s release.
The last threatened government shutdown was in March 2025.
In the event of weaker job numbers, rates could potentially decrease. A struggling job market would strengthen the case for the Federal Reserve to lower the federal funds rate in their upcoming meeting. Conversely, if the data shows unexpected strength, rates could rise as the path forward for central bankers becomes less clear.
🏡 Is it time to start looking for a new home?
There isn’t a one-size-fits-all answer to this question. What matters most is whether you can comfortably afford a mortgage at today’s rates.
If the answer is yes, don’t worry too much about potentially missing out on lower rates in the future. You can always refinance later on. Focus on getting preapproved, comparing offers from different lenders, and determining a monthly payment that aligns with your budget.
Utilize BW’s affordability calculator to estimate your monthly payment. If purchasing a new home isn’t feasible at the moment, there are steps you can take to enhance your buyer profile. Use this time to pay off existing debts and build up your down payment savings. This will not only free up more cash flow for future mortgage payments but could also secure you a better interest rate when you’re ready to buy.
🔒 Should I lock in my rate?
If you have received a rate quote that you’re satisfied with, it may be wise to consider locking in your mortgage rate, especially if your lender offers a float-down option. A float-down feature allows you to take advantage of a lower rate if the market shifts during your rate lock period.
Rate locks safeguard you from rate increases while your loan is in the processing stage. Given the volatility of the market, this peace of mind can be invaluable.
🤓 Nerdy Tip: Mortgage rates can fluctuate daily, even hourly. If you’re content with the offer you have, don’t hesitate to commit.
🔁 Is refinancing a good option for me?
Refinancing could be beneficial if today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate (and if you intend to stay in your home long enough to recoup the closing costs).
Given the current rate environment, it might be worth considering a refinance if your existing rate is approximately 6.89% or higher.
Also, think about your objectives: Are you aiming to reduce your monthly payment, shorten your loan term, or leverage your home equity for cash? For instance, you might be comfortable with a higher rate for a cash-out refinance as long as the overall costs are lower than if you were to maintain your original mortgage and acquire a HELOC or home equity loan.
If you’re seeking a lower rate, utilize BW’s refinance calculator to estimate potential savings and determine the break-even point for refinancing costs.
🧐 Why does the rate I see online differ from the quote I receive?
The rate advertised online is typically a sample rate for a borrower with excellent credit, making a substantial down payment, and paying for mortgage points. This may not align with every buyer’s specific circumstances.
In addition to external market factors, your personalized quote is influenced by your:
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Location and type of property
Even individuals with similar credit scores may receive different rates based on their overall financial profiles.
👀 Can I secure the rate I saw online if I apply now?
It’s possible, but even personalized rate quotes can fluctuate until you lock in. Lenders adjust pricing multiple times a day in response to market changes.