Yes, mortgage interest rates are higher today, but only by a slight margin.
The average interest rate on a 30-year, fixed-rate mortgage rose to 6.74% APR, according to rates provided to NerdWallet by Zillow. This represents a nine basis point increase from yesterday and remains unchanged from a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.
Mortgage rates are currently facing upward pressure as investors react to renewed conflict in Iran. Ongoing fighting has driven oil prices higher and weakened the bond market, which directly influences mortgage rates.
Average mortgage rates, last 30 days
Kate on Rates: September 3, 2026
What influences mortgage rates?
Mortgage rates are constantly changing, as a major part of how they are set depends on reactions to new inflation reports, employment data, Federal Reserve meetings, and global news. Even minor fluctuations in the bond market can shift mortgage pricing.
Several factors are currently pushing mortgage rates higher, all of which ultimately stem from one primary driver: inflation.
First, we have the war in Iran. After a weekslong stretch of relative peace, tensions have flared into actual aggression once again. Historically, whenever geopolitical tensions escalate, mortgage rates tend to rise. Since mortgage rates are pegged to the yield on the 10-Year Treasury note, concerns about the Iran war impeding trade, driving up oil prices, and spurring inflation keep pushing bond yields higher. As yields rise, so do rates.
Second, Federal Reserve commentary. Chair Kevin Warsh has made it abundantly clear that he desires less communication from Fed officials and has already implemented significant changes to the central bankers’ post-meeting statements. However, he cannot prevent markets from parsing every word.
Back on Aug. 28, Warsh delivered his first official speech as chair. While his remarks remained high-level, he sounded sufficiently aggressive on inflation to convince Fed watchers that a quarter-percentage-point rate hike is likely at the Sept. 15-16 meeting. Though the Federal Reserve does not set mortgage rates, its decisions are highly influential, and rates spiked following Warsh’s remarks.
However, markets are fickle. Last week, a couple of Federal Reserve officials made public remarks suggesting a rate hike might not be necessary. This was enough to lower those odds and shave a few basis points off Friday’s average mortgage rates.
Speaking of Friday: Last week closed with the case for maintaining the funds rate weakening, as August’s Employment Situation Summary revealed a shockingly strong labor market. The U.S. economy added 162,000 jobs in August—more than three times what economists had predicted—while the unemployment rate held steady.
This was especially striking following July, which originally showed the economy losing 23,000 jobs. That figure has since been revised upward. While it remains far lower than August’s 21,000 jobs gained, it is now at least a positive number.
A struggling labor market would discourage the Fed from hiking rates. Central bankers raise the federal funds rate—the overnight borrowing rate the Fed sets—to curb inflation. Part of that reasoning is that higher rates discourage businesses from expanding and hiring. If the job market is weak, it is risky to raise rates even if inflation is high. However, a strong job market gives the Fed the confidence to tackle inflation.
Finally, we have actual inflation statistics. If you have purchased gas, groceries, or any items with a known price history lately, you have felt the pinch of rising prices. The Federal Reserve targets a 2% inflation rate as healthy for the economy, but we have remained above that threshold since March 2021.
We will receive brand new inflation data this week, with August’s Consumer Price Index set for release on Friday, Sept. 11. If the CPI comes in at or above expectations, it could tilt the odds back toward a rate hike from the Fed at its upcoming meeting.
Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate, provided you plan to stay in your home long enough to break even on closing costs.
With rates where they are right now, you could start considering a refinance if your current rate is around 7.24% or higher.
Also consider your goals: Are you trying to lower your monthly payment, shorten your loan term, or turn home equity into cash? For example, you might be more comfortable paying a higher rate for a cash-out refinance than you would for a rate-and-term refinance, so long as the overall costs are lower than if you kept your original mortgage and added a HELOC or home equity loan.
If you are looking for a lower rate, use NerdWallet’s refinance calculator to estimate savings and understand how long it would take to break even on the costs of refinancing.
Should I start shopping for a home?
There is no universal “right” time to start shopping—what matters is whether you can comfortably afford a mortgage at today’s rates.
If the answer is yes, do not get too hung up on the possibility of missing out on lower rates later; you can always refinance down the road. Focus on getting preapproved, comparing lender offers, and understanding what monthly payment fits your budget.
NerdWallet’s affordability calculator can help you estimate your potential monthly payment. If a new home is not in the cards right now, there are still things you can do to strengthen your buyer profile. Take this time to pay down existing debts and build your down payment savings. Not only will this free up more cash flow for a future mortgage payment, it can 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 happy with, you should consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down allows you to take advantage of a better rate if the market drops during your lock period.
Rate locks protect you from increases while your loan is processed, and with the market constantly fluctuating, that peace of mind can be well worth it.
Nerdy Reminder: Rates can change daily, and even hourly. If you are happy with the deal you have, it is perfectly 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—usually intended for a borrower with perfect credit, a large down payment, and the purchase of mortgage points. This will not match every buyer’s circumstances.
In addition to market factors outside of your control, your customized quote depends on your specific financial profile.
Even two people 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. That is because lenders adjust pricing multiple times a day in response to market changes.
About the author
Abby Badach Doyle has been writing about homeownership and mortgages for NerdWallet since 2022. Her work has been featured in outlets including The Associated Press, The Washington Post, and The Seattle Times. From interactive tools to practical advice, Abby is passionate about making the homebuying journey less stressful—especially for first-time buyers.
As a reporter, she is interested in writing about innovative housing solutions, such as co-living, and personal stories about how homeownership builds community and a sense of 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 on how to navigate income swings in a creative career.
Abby is based in Pittsburgh, a city defined by working-class grit and neighborly spirit. When she is not writing about personal finance, she is at her urban homestead: playing fiddle, raising chickens, and preserving the bounty from her garden.
