Mortgage Rates Today, Wednesday, October 7: Pretty Stable

Mortgage rates are holding steady for now, but don't count on that to last.The average interest rate on a 30-year, fixed-rate mortgage rose to 7.43% APR, according to rates provided to NerdWallet by Zillow. This is one basis point higher than yesterday but one basis point lower than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.Mortgage interest rates are generally benchmarked to the yield on the 10-year Treasury, and the U.S. Treasury is holding an auction of 10-year notes this afternoon. The 10-year yield recently hit a nearly 25-year high, and this auction's a barometer of whether that yield's large enough to attract investors. If yields go higher, mortgage rates do, too.For more on what's happening with the bond market and how that affects mortgage rates, keep reading below the chart.Average mortgage rates, last 30 days🤓 Kate on Rates: October 1, 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.Like I mentioned above, 30-year fixed mortgage rates are generally pegged to the yield on the 10-year Treasury. Why? Home loans get repackaged into investment vehicles called mortgage-backed securities (MBS), and MBS attract similar investors to bonds. The 10-year note is the best proxy, since with homeowners refinancing and selling, that's roughly how long most 30-year mortgages actually last.The bond market's been in selloff mode for a while, and that's pushing up yields. A bond's yield is essentially the interest rate on the bond. Unlike stocks, which have varying returns, when you buy a bond you already know what it's going to earn — that's called the coupon rate, and it's set when the bond is issued.But bonds aren't always bought straight from the issuer. When investors buy and sell bonds, the bonds aren't sold at face value. Like any investment, the supply and demand on any given day determine the price.That also determines the bond's yield. The coupon rate is a percentage of the bond's value at issuance. But the return an investor would actually get is going to vary depending on what they pay for that bond. The yield is what an investor would earn at the coupon rate divided by the bond's current price. When bond prices are higher, yields go down; when bond prices drop, yields go up. (Picturing it as a fraction can help this make sense; the denominator changes but the numerator does not.)Bond yields have been spiking for a bunch of reasons, some of which I detail in the story I just linked. Note that since I wrote that, bond yields have gone even higher. In that piece, I mention the 10-year yield hitting its highest level since 2007; we're now seeing yields we haven't seen since 2002.Long story short, if you've been wondering why mortgage rates have run up so much in the past couple of weeks, the bond market's a major culprit. If you’re home shopping now, build your budget around today’s higher rates — and treat any dip as a welcome bonus, not a guarantee. And if you’ve been hoping to refinance … well, patience is a virtue. 😬Explore mortgages today and get started on your homeownership goalsGet personalized rates. Your lender matches are just a few questions away.Do you want to purchase or refinance?What's your property type?How do you plan to use this property?Won't affect your credit score🔁 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 7.93% or higher — but there just aren't too many people for whom that's true.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.