Mortgage Rates Hit 7.03%, Highest in a Year, Squeezing Homebuyers
MarketsFN Data Team
The 30-year fixed mortgage rate rose to 7.03% this week, up 8 basis points from last week, pushing the monthly payment on a $400,000 loan to $2,669—$178 more than a year ago.
The 30-year rate now sits well above its 3-month (6.67%), 1-year (6.36%), and 5-year (6.20%) averages, and matches its 52-week high of 7.03%. A $400,000 mortgage today costs $2,669 monthly, compared to $2,491 a year ago at a 5.98% rate, highlighting the affordability crunch for buyers.
Rates are climbing as the 10-year Treasury yield hits 5.26%, with the mortgage-Treasury spread at 1.77 percentage points—elevated but stable. The Fed’s 3.63% funds rate and inflation fears keep upward pressure on borrowing costs, while lenders maintain cautious pricing amid economic uncertainty.
Next week, watch for Fed commentary on rate cuts and September jobs data, which could sway bond markets. Seasonal cooling in homebuying demand may ease rate pressure, but stubborn inflation could prolong the high-rate environment.
Key Statistics at a Glance
| Week ending | October 01, 2026 |
| 30Y Fixed Rate | 7.03% |
| WoW change | ▲ 8.0 bps |
| YTD change | +87.0 bps |
| 15Y Fixed Rate | 6.42% |
| 15Y WoW | ▲ 16.0 bps |
| 3-month average | 6.67% |
| 1-year average | 6.36% |
| 5-year average | 6.20% |
| 52-week high | 7.03% |
| 52-week low | 5.98% |
| Fed Funds Rate | 3.63% |
| 10Y Treasury | 5.26% |
| Mortgage–10Y Spread | 1.77 pp |
| Monthly pmt $400k/30Y | $2,669 |
| vs 1 year ago | ▲ $179/month |
