Mortgage Rates Today, Monday, August 31: Starting the Week Higher

Mortgage rates are higher this morning, as markets are taking Federal Reserve Chair Kevin Warsh's Friday morning remarks in Jackson Hole, Wyoming as strong evidence that a September rate hike is on the way.The average interest rate on a 30-year, fixed-rate mortgage rose to 6.62% APR, according to rates provided to NerdWallet by Zillow. This is nine basis points higher than Friday and five basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.This conviction that Warsh sounding tough about inflation is going to lead the Fed to acting tough on inflation is a bit perplexing, at least to me. I'm not questioning the mechanism — raising the federal funds rate is the central bankers' main tool for slowing down price inflation. But I think I've seen this film before, and I didn't like the ending. For more, keep reading below the chart.Average mortgage rates, last 30 days🤓 Kate on Rates: August 27, 2026📈 What influences mortgage rates? Mortgage rates are constantly changing, since a major part of how rates are set depends on reactions to new inflation reports, job numbers, Fed meetings, global news ... you name it. For example, even tiny changes in the bond market can shift mortgage pricing.On Friday, Federal Reserve Chair Kevin Warsh gave his first official speech in that position at the Kansas City Fed's annual gathering in Jackson Hole, Wyoming. Traditionally this offers the Fed chair a pulpit to lay out a vision for the central bank and to clue in markets as to the Fed's likely moves. Given Warsh's extreme reticence, there were a lot of eyes (and ears) on this speech — was he finally going to offer some insight into his views on the present economy or any kind of indication as to what might spur the Fed to action?So on the plus, yes, Warsh did go over the present economic situation in a good amount of detail. He feels like things aren't too bad, though he noted the housing market as a weak point. Inflation's the one element Warsh described as truly problematic, a point he underscored repeatedly. Near the end of his speech, he said, "There is one signal nobody can miss: The responsibility for 65 months of sustained, elevated inflation sits squarely with the central bank. And that is where it belongs."For me, this sounded a lot like the tough talk on inflation we got at Warsh's two post-meeting press conferences, each of which followed meetings where the Federal Open Market Committee chose not to raise the federal funds rate. (Again, hiking that short-term borrowing rate is their key tool for taming inflation.) We already know Warsh is committed to a 2% rate of inflation and that he thinks this is the Fed's responsibility. But markets seem to think this time is going to be different, so Fed futures traders' odds of a rate hike at the Sept. 15-16 meeting have shot upward since Friday morning's speech. Bond yields also rose, bringing mortgage rates along with them. That's still true today, though now renewed fighting in Iran is also pushing up yields.🔁 Should I refinance?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 (and if 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 refi if your current rate is around 7.12% 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 with 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're 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 now at today’s rates.If the answer is yes, don’t get too hung up on whether you could be missing out on lower rates later; you can refinance down the road. Focus on getting preapproved, comparing lender offers, and understanding what monthly payment works for your budget.NerdWallet’s affordability calculator can help you estimate your potential monthly payment. If a new home isn’t 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 get you a better interest rate when you’re ready to buy. 🔒 Should I lock my rate?If you already have a quote you’re happy with, you should consider locking your mortgage rate, especially if your lender offers a float-down option. A float-down lets you 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 forever bouncing around, that peace of mind can be worth it.🤓 Nerdy Reminder: Rates can change daily, and even hourly. If you’re happy with the deal you have, it’s okay 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 for a borrower with perfect credit, making a big down payment, and paying for mortgage points. That won't match every buyer's circumstances.In addition to market factors outside of your control, your customized quote depends on your:Credit scoreDebt-to-income ratioEmployment historyDown paymentType of mortgageLocation and property typeLoan amountEven two people with similar credit scores might get 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’s because lenders adjust pricing multiple times a day in response to market changes.