Mortgage rates increased today, coinciding with the August Consumer Price Index report, which revealed that inflation remains stubbornly elevated.
The average interest rate for a 30-year fixed-rate mortgage rose to 6.98% APR, based on data provided to NerdWallet by Zillow. This represents an increase of 19 basis points from yesterday and 29 basis points from a week ago. (Refer to the chart below for further details.) A basis point equals one one-hundredth of a percentage point.
Recent CPI data indicates inflation persisting at an annual rate of 3.4%. If you have recently purchased gas, groceries, or any other everyday items, you have likely felt the impact of rising prices. Mortgage rates are similarly affected by this trend.
The Federal Reserve targets a 2% inflation rate as optimal for the economy; however, inflation has remained above this threshold since March 2021. The Federal Reserve is scheduled to meet next week on September 15-16. The latest CPI data reinforces the argument for the committee to raise its benchmark rate by a quarter percentage point. If you are currently shopping for a mortgage, it is prudent to prepare for continued higher rates in the near term.
While the economy operates continuously, financial markets are closed on weekends. The rates observed today on Friday are unlikely to change significantly, if at all, until Monday.
Average mortgage rates, last 30 days
Kate on Rates: September 10, 2026
What influences mortgage rates?
Mortgage rates are constantly changing, as a significant portion of rate determination relies on market reactions to new inflation reports, employment data, Federal Reserve meetings, and global events. Even minor fluctuations in the bond market can alter mortgage pricing.
Several factors have been pushing mortgage rates higher recently. A quick recap of the three primary influences reveals they all converge on a single issue: Inflation.
So, what is driving this increase? First, we are witnessing the war in Iran. After a weekslong period of relative peace, tensions have escalated into active aggression—and historically, such events have caused mortgage rates to rise. Mortgage rates are pegged to the yield (essentially the return) on the 10-Year Treasury note. Concerns regarding the Iran war impeding trade, driving up oil prices, and broadly spurring inflation continue to push bond yields higher. As yields increase, so do rates.
Meanwhile, the previous week closed with the case for maintaining the funds rate weakening slightly, as August’s Employment Situation Summary (commonly referred to as the jobs report) indicated a surprisingly robust labor market. In August, the U.S. economy added 162,000 jobs—more than three times the number economists had predicted. The unemployment rate remained stable.
This was particularly striking coming off July, which initially showed the economy losing 23,000 jobs. That figure has been revised upward; although it remains significantly lower than August—with 21,000 jobs gained—it is at least a positive number now.
If the labor market were struggling, it would discourage the Fed from raising rates. Central bankers increase the federal funds rate—the overnight borrowing rate set by the Fed—to curb inflation. The underlying reasoning is that higher rates discourage businesses from expanding and hiring. If the labor market is weak, raising rates poses a risk even if inflation is high. However, if the job market appears strong, the Fed can feel more confident in its decision to tackle inflation.
The Federal Reserve does not directly set mortgage rates, but its policy decisions influence the trajectory of mortgage rates. Therefore, if you are shopping for a mortgage, you should not expect immediate relief.
Refinancing might be a viable option if current rates are at least 0.5 to 0.75 percentage points lower than your existing rate and you plan to remain in your home long enough to recoup the closing costs.
Given the current rate environment, you might begin considering a refinance if your current rate is around 7.48% or higher.
Additionally, consider your financial goals: Are you aiming to reduce your monthly payment, shorten your loan term, or convert home equity into cash? For instance, you might be more comfortable paying a higher rate for a cash-out refinance than a rate-and-term refinance, provided the overall costs are lower than keeping your original mortgage and adding a HELOC or home equity loan.
If you are seeking a lower rate, utilize NerdWallet’s refinance calculator to estimate potential savings and understand how long it will take to break even on the costs of refinancing.
Should I start shopping for a home?
There is no universal “right” time to begin shopping—what matters is whether you can comfortably afford a mortgage at today’s rates.
If the answer is yes, avoid becoming overly fixated on the possibility of securing lower rates in the future; you can always refinance later. Focus on getting preapproved, comparing lender offers, and understanding what monthly payment fits within your budget.
NerdWallet’s affordability calculator can help you estimate your potential monthly payment. If purchasing a new home is not feasible right now, there are still steps you can take to strengthen your buyer profile. Take this time to pay down existing debts and build your down payment savings. This will not only free up cash flow for a future mortgage payment but also help you secure a better interest rate when you are ready to buy.
Should I lock my rate?
If you already have a quote you are satisfied with, you should consider locking your mortgage rate, particularly if your lender offers a float-down option. A float-down allows you to benefit from a better rate if the market declines during your lock period.
Rate locks shield you from increases while your loan is being processed, and given the market’s constant fluctuations, that peace of mind can be invaluable.
Nerdy Reminder: Rates can change daily, and even hourly. If you are happy with the deal you have, it is acceptable to commit.
Why is the rate I saw online different from the quote I got?
The rate you see advertised is a sample rate—typically offered to a borrower with flawless credit, a substantial down payment, and points purchased. This will not align with every buyer’s circumstances.
Beyond market factors outside your control, your customized quote depends on your:
Even two individuals with similar credit scores might receive different rates, depending on their overall financial profiles.
If I apply now, can I get the rate I saw today?
Maybe—but even personalized rate quotes can change until you lock. This is because lenders adjust pricing multiple times daily in response to market shifts.
About the author
Abby Badach Doyle has been covering homeownership and mortgages for NerdWallet since 2022. Her work has appeared in prominent outlets such as The Associated Press, The Washington Post, and The Seattle Times. Abby is dedicated to simplifying the homebuying process, particularly for first-time buyers, through interactive tools and practical advice.
As a reporter, she focuses on innovative housing solutions, such as co-living, and personal narratives illustrating how homeownership fosters community and belonging.
Abby is also a musician, songwriter, and producer who understands the challenge of balancing creative fulfillment with financial stability. In 2024, she produced a special episode of NerdWallet’s “Smart Money” podcast exploring how to navigate income fluctuations in a creative career.
Abby is based in Pittsburgh, a city characterized by working-class resilience and neighborly spirit. When she is not writing about personal finance, she can be found at her urban homestead—playing the fiddle, raising chickens, and preserving the bounty from her garden.