Mortgage rates edged lower on Oct. 1, but borrowing costs remained elevated, with the average 30-year fixed-rate conforming mortgage at 7.433%, according to Mortgage Research Center data reviewed by Fortune.
The average 15-year fixed-rate mortgage also declined slightly to 6.634%. Despite the daily moves, rates were significantly higher than a week earlier across major loan categories.
Mortgage rates remain well above last week’s levels
| Mortgage Type | Oct. 1 Rate | Rate a Week Earlier | Weekly Change |
|---|---|---|---|
| 30-year conventional | 7.433% | 7.111% | +32 bps |
| 15-year conventional | 6.634% | 6.342% | +29 bps |
| 30-year jumbo | 7.612% | 7.282% | +33 bps |
| 30-year FHA | 6.807% | 6.510% | +30 bps |
| 30-year VA | 6.910% | 6.583% | +33 bps |
| 30-year USDA | 6.802% | 6.571% | +23 bps |
A $300,000 30-year mortgage at 7.433% would result in roughly $450,200 in interest over the life of the loan, based on calculations using the federal government’s mortgage calculator. At 6.634% on a 15-year loan for the same amount, lifetime interest would be about $174,385.
The daily changes varied by loan type. Jumbo rates rose slightly to 7.612%, while FHA, VA and USDA rates all moved lower.
Fed policy remains an important factor
The Federal Reserve does not directly set mortgage rates, but its decisions on the federal funds rate can influence borrowing costs.
At its Sept. 15–16 meeting, the Federal Open Market Committee raised the federal funds rate to a range of 3.75% to 4.00%. The next FOMC meeting is scheduled for Oct. 27–28.
Mortgage rates reached an exceptionally low 2.65% in January 2021, when the Fed had reduced its benchmark rate to effectively zero during the pandemic. Current expectations cited in the supplied report do not anticipate a return to those levels in the foreseeable future.
Higher rates are weighing on mortgage demand
The rise in borrowing costs has also affected mortgage applications. Applications fell 6% for the week ending Sept. 25 from the previous week, according to the Mortgage Bankers Association.
Joel Kan, the MBA’s vice president and deputy chief economist, said rates had climbed to their highest level in almost three years, prompting borrowers to delay applications. Both purchase and refinancing activity fell to their slowest weekly pace since 2025.
Adjustable-rate mortgages accounted for 10.3% of total applications.
With rates elevated, borrowers can also compare multiple lenders and loan types. Fortune’s supplied report cites Freddie Mac data indicating that shoppers in high-rate environments may save hundreds of dollars annually by obtaining quotes from multiple lenders.
