Mortgage Rates Today, Monday, September 22: A Little Higher

Yes, mortgage interest rates are higher today, but only by a little.

The average interest rate on a 30-year, fixed-rate mortgage has climbed to 6.37% APR, as reported by Zillow to NerdWallet. This marks an increase of five basis points from yesterday, yet it is 11 basis points lower than a week ago. (Refer to our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

If you’re closely monitoring mortgage rates in hopes of a decline, don’t be too discouraged. Lenders frequently adjust their advertised rates throughout the day, leading to quick reactions to any news—whether positive or negative. To truly understand the market, it’s essential to observe the broader trend rather than fixating on daily fluctuations.

Mortgage rates are
constantly changing,
as a significant part of

how rates are set

is influenced by reactions to new inflation reports, job numbers, Fed meetings, and global news. Even minor shifts in the bond market can impact mortgage pricing.

Following the

Fed’s Sept. 17 rate cut

, our Nerds are anticipating the release of the Personal Consumption Expenditures Index (PCE) on Friday, Sept. 26. The Fed decided to cut rates to support the labor market rather than maintain or increase rates to combat inflation.

PCE is a key measure of inflation

, providing critical data that could influence further rate cuts this year or prompt the Fed to adopt a more restrictive policy stance.

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, don’t dwell on the possibility of lower rates later; refinancing is always an option down the road. Focus on obtaining

preapproved

, comparing lender offers, and understanding what monthly payment fits your budget.

NerdWallet’s

affordability calculator

can assist you in estimating your potential monthly payment. If purchasing a new home isn’t feasible right now, consider strengthening your buyer profile. Use this time to reduce existing debts and increase your down payment savings. This not only enhances your cash flow for future mortgage payments but may also secure you a better interest rate when you’re ready to buy.

If you have a quote you’re satisfied with, consider

locking your mortgage rate

, especially if your lender offers a float-down option. This allows you to benefit from a better rate if the market drops during your lock period.

Rate locks shield you from increases while your loan is processed, and given the market’s volatility, that peace of mind can be invaluable.

Refinancing may be worthwhile if today’s rates are at least 0.5 to 0.75 percentage points lower than your current rate, and if you plan to stay in your home long enough to recoup closing costs.

With current rates, you might want to consider refinancing if your existing rate is around 6.87% or higher.

Also, think about your objectives: Are you aiming to lower your monthly payment, shorten your loan term, or convert home equity into cash? For instance, you might be more comfortable accepting a higher rate for a

cash-out refinance

than for 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’re seeking a lower rate, utilize NerdWallet’s

refinance calculator

to estimate your savings and determine how long it would take to break even on refinancing costs.

The rate you see advertised is a
sample rate
— typically for a borrower with excellent credit, making a substantial down payment, and paying for

mortgage points

. This may not reflect every buyer’s situation.

In addition to market factors beyond your control, your personalized quote is influenced by your:

• Location and property type

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

Maybe — but even personalized rate quotes
can change until you lock.
Lenders adjust pricing multiple times a day in response to market fluctuations.