Mortgage Rates Soar to 7.28%, Increasing for Their Sixth Consecutive Week

Mortgage rates climbed sharply again this week, pushing borrowing costs to their highest level in nearly three years and adding another hurdle for Americans trying to purchase a home.

The average rate on a 30-year fixed mortgage rose to 7.28%, up from 7.03% a week earlier, according to Freddie Mac data released Thursday. Rates have now increased for six consecutive weeks, with the latest increase marking the largest one-week jump in nearly four years.

Mortgage rates are now at their highest level since November 2023. The surge has been fueled largely by turmoil in the bond market. The yield on the 10-year Treasury, which heavily influences mortgage rates, has climbed as investors weigh inflation risks stemming from the Iran war and increased U.S. government spending.

Higher rates can significantly change the affordability equation for prospective buyers, increasing monthly mortgage payments even if home prices remain unchanged. They may also push some rate-sensitive buyers out of the market, potentially reducing competition for those who remain.

Still, according to CNN, buyers are not necessarily stuck paying more than 7%. Several strategies could help borrowers secure a lower rate, although some involve higher upfront costs or additional risks.

One option is choosing a shorter-term mortgage. A 15-year fixed mortgage typically carries a lower interest rate than a traditional 30-year loan, but borrowers must be able to handle substantially higher monthly payments because the principal is repaid twice as quickly.

Adjustable-rate mortgages, or ARMs, are also attracting more attention. ARM rates were recently about 80 basis points below fixed-rate loans and accounted for 10.3% of mortgage applications, the highest share since October 2025, according to Mortgage Bankers Association Deputy Chief Economist Joel Kan.

ARMs generally provide a fixed interest rate for an initial period, often five, seven or 10 years, before the rate adjusts based on market conditions. “It may work well for some borrowers who are expecting to move or refinance in four or five years,” Jeremy Luke, a divisional director at Chase Home Lending, said. “It may not work for all.”

Buyers can also look for assumable mortgages, which allow them to take over a seller’s existing loan and potentially inherit a much lower interest rate. Most government-backed mortgages, including eligible FHA, VA, and USDA loans, can be assumable.

However, buyers generally must cover the difference between the seller’s remaining mortgage balance and the purchase price, potentially requiring a substantial amount of cash.

Another strategy is buying down the mortgage rate by paying additional money upfront. Permanent buydowns reduce the interest rate throughout the life of the mortgage, while temporary buydowns lower borrowing costs during the first few years.

Jeff DerGurahian, head economist at loanDepot, cautioned buyers against draining their savings simply to secure a lower rate. “You don’t want to put so much money down that you can’t do what you need to do to live in your house and live day-to-day,” he said.

Some buyers may not have to pay for the buydown themselves. Homebuilders and motivated sellers increasingly offer mortgage-rate incentives. In September, 66% of builders reported using sales incentives, up from 63% in August and the highest percentage since December, according to the National Association of Home Builders.

Government programs can also provide alternatives. Eligible veterans may qualify for VA mortgages, while USDA loans are available for qualifying properties and borrowers in rural areas. Some banks and credit unions also provide discounted rates through relationship-pricing programs.