The average 30-year fixed mortgage rate rose to 7.28% in Freddie Mac’s survey for the week ending October 1, up from 7.03% a week earlier and 6.34% a year ago. It is the highest weekly reading since November 2023 and the largest one-week increase since October 2022. The 15-year fixed climbed to 6.60%.
Rates did not jump because the Federal Reserve raised its benchmark this week. They jumped because the 10-year Treasury yield has been climbing, and mortgage pricing follows that yield more closely than the Fed’s short-term rate. A soft September jobs report, released October 2, made another near-term hike less likely and took a little heat out of daily rates. Think a dip, not a reset. The weekly average is still near a three-year high.
On a $400,000 loan, principal and interest at 7.28% is roughly $2,735 a month. At last year’s 6.34% it was about $2,485. That is about $250 more every month, before taxes and insurance. Buyers feel that immediately. Sellers feel it as fewer showings, more price cuts, and more contracts that fall apart over financing.
What the rest of the tape is saying:
- Purchase applications are down sharply from a year ago, and refinance demand has collapsed because almost no one with a pandemic-era rate can benefit.
- Pending sales are softer than last fall, and the share of listings with a price cut is elevated.
- Inventory is higher than a year ago mostly because buyers stepped back, not because a flood of new listings hit the market. Owners with 3% mortgages are still staying put. That lock-in effect is why a price crash is unlikely even with rates back above 7%.
If you are buying
The useful question is not “will rates be lower in six months?” It is “does this payment work if rates stay here, and can I refinance later if they do not?” Get a full pre-approval, not a pre-qualification. Ask the lender to price a 30-year fixed against a 7/6 or 10/6 ARM. In some weeks the adjustable is the only way the payment fits, with the tradeoff that it resets. Shop at least two lenders the same day. A quarter point matters more at 7.28% than it did at 6%.
If you are selling
Price to the payment, not to last spring’s comparable. Homes that are clean, easy to show, and priced inside the first two weeks of feedback are still selling. Homes that need a second price cut after 30 days are negotiating from a weaker spot, because the buyer pool shrank again this month. Concessions toward the buyer’s rate, rather than another list-price cut, are often the cleaner lever.
A softer jobs number can pull yields down. It can also mean fewer raises and fewer moves. Neither is a strategy. The strategy is a payment you can live with and a list price a buyer at today’s rate can clear.
If you want the payment on a specific home in this market, call or text (442) 214-9444 or use the contact page. We will run the numbers at today’s rate, not last year’s. For an inherited home in probate or a trust, the same payment math is what your buyer is using.
Figures are from Freddie Mac’s weekly survey for the week ending October 1, 2026, Zillow’s September 29 new-home analysis, ATTOM’s October 1 flipping report, and Rocket’s first-time-buyer savings comparison reported October 2. Payment examples are principal and interest only. This is general information, not lending, tax, or legal advice.
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