Mortgage Rates Today, Thursday, September 25: Kind of a Big Jump

If you’re here looking for lower mortgage interest rates, today is definitely not your day.

The average interest rate on a 30-year, fixed-rate mortgage has surged to 6.48% APR, as reported by Zillow to NerdWallet. This marks a 15 basis point increase from yesterday and a 19 basis point rise from just a week ago. (Refer to our chart below for more specifics.) To clarify, a basis point is one one-hundredth of a percentage point.

Mortgage rates are in constant flux, and if you’re monitoring them daily, expect to see significant volatility. To gain a clearer perspective, consider examining a broader time frame, such as a graph displaying at least a month’s worth of rate data. This approach can help you identify the overall trend.

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, global news… you name it. Even minor fluctuations in the bond market can impact mortgage pricing.

Following the

Fed’s Sept. 17 rate cut

, our Nerds are looking forward to the Personal Consumption Expenditures Index (PCE) set to release on Friday, Sept. 26. The central bank opted to cut rates to support the labor market instead of holding or raising rates to curb inflation.

PCE is a key measure of inflation

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

There is no one-size-fits-all answer to when to start shopping for a home. What truly matters is whether you can comfortably afford a mortgage at today’s rates.

If you can afford it, don’t stress about potentially missing out on lower rates later; refinancing is always an option down the line. Concentrate on getting

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 using this time to pay down existing debts and bolster your down payment savings. This strategy 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 that meets your expectations, consider

locking your mortgage rate

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

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

Refinancing could be beneficial 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.

Given the current rates, you might want to consider refinancing if your existing rate is around 6.98% or higher.

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

cash-out refinance

compared to a rate-and-term refinance, provided the overall costs are lower than maintaining your original mortgage and adding a HELOC or home equity loan.

If you’re in search of a lower rate, utilize NerdWallet’s

refinance calculator

to estimate potential savings and understand 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 won’t align with every buyer’s situation.

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

• Location and property type

Even
two individuals with similar credit scores
might 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.