Mortgage Rates Edge Down Monday, Remaining Above 7%

Mortgage rates eased marginally Monday, though the decline remains too small to meaningfully impact monthly payments.

The average 30-year fixed-rate mortgage declined to 7.14% APR, per Zillow data provided to NerdWallet — a decrease of nine basis points from the previous day and two basis points from a week ago. (See the chart below for details.) One basis point equals one-hundredth of a percentage point.

Rates have climbed above 7% in recent weeks as inflation exerts pressure on financial markets. Below the chart is a closer look at the forces currently shaping mortgage pricing.

Average mortgage rates, last 30 days

Kate on Rates: September 28, 2026

What influences mortgage rates?

Mortgage rates shift constantly because they respond to everything from inflation reports and employment data to Federal Reserve decisions and global developments. Even minor bond market movements can influence pricing.
Bond markets are currently under upward pressure from inflation, pushing mortgage rates higher. To curb rising prices, the Federal Reserve raised its benchmark rate by 25 basis points at its September meeting. While the Fed does not directly set mortgage rates, markets closely watch for signals about its next action.
Changes to the federal funds rate ripple through the broader economy. With two additional Fed meetings remaining before the end of 2026, uncertainty persists over how quickly and aggressively the central bank will need to raise rates to control inflation. That unpredictability has made financial markets wary. This week, upcoming data should provide greater clarity.

Inflation: On Wednesday, August’s Personal Consumption Expenditures price index will offer another read on inflation trends. As the Fed’s preferred measure, a stronger-than-expected PCE could signal additional rate hikes and higher mortgage rates ahead.
• Employment: Friday’s Job Openings and Labor Turnover Survey for August will gauge labor market strength. If job openings remain solid, the Fed may feel comfortable pursuing further rate increases without jeopardizing economic growth.

Fed rate hikes are not inherently negative; they are designed to rein in inflation, which can eventually help lower mortgage rates. However, rooting for a weak jobs report to avoid hikes is counterproductive. A fragile labor market combined with persistent inflation creates broad economic trouble, straining household budgets and leaving the Fed with limited options.

Should I start shopping for a home?

There is no universal “right” time to shop for a home; what matters is whether you can comfortably afford a mortgage at today’s rates.

If the answer is yes, avoid fixating on whether lower rates might appear later — you can always refinance later. Focus instead on getting preapproved, comparing lender offers, and confirming that the monthly payment fits your budget.
An affordability calculator can help estimate your potential monthly payment. If buying is not feasible right now, you can still strengthen your profile by paying down existing debt and building down payment savings. Doing so frees up cash flow for a future mortgage and may help you secure a better rate when you are ready to buy.

Should I lock my rate?

If you have a quote you are satisfied with, consider locking your rate, particularly if your lender offers a float-down option that allows you to capture a better rate if markets decline during the lock period.

Rate locks shield you from increases while your loan is processed, and with markets constantly fluctuating, that peace of mind can be worthwhile.

Reminder: Rates can change daily, even hourly. If you are happy with your offer, committing is reasonable.

Why is the rate I saw online different from the quote I got?

The advertised rate is typically a sample rate intended for a borrower with excellent credit, a large down payment, and mortgage points. It will not match every buyer’s circumstances.

In addition to market factors beyond your control, your personalized quote depends on:

Even borrowers with similar credit scores may receive different rates based on their overall financial profiles.

If I apply now, can I get the rate I saw today?

Possibly — but even personalized quotes can change before you lock. Lenders adjust pricing multiple times daily in response to market movements.

About the author

Abby Doyle has covered homeownership and mortgages for NerdWallet since 2022. Her work has appeared in The Associated Press, The Washington Post, and The Seattle Times. She is dedicated to simplifying the homebuying process, particularly for first-time buyers.

As a reporter, she focuses on innovative housing solutions, such as co-living, and personal narratives about how homeownership fosters community and belonging.

Abby is also a musician, songwriter, and producer who understands the challenge of balancing creative work with financial stability. In 2024, she produced a special episode of NerdWallet’s “Smart Money” podcast about navigating income swings in a creative career.

Based in Pittsburgh, a city known for its working-class grit and neighborly spirit, Abby spends her free time at her urban homestead playing fiddle, raising chickens, and preserving garden produce.

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