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Mortgage Rates Today, Friday, September 26: Noticeably Lower - NerdWallet

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  Published in House and Home on Friday, September 26th 2025 at 10:40 GMT by NerdWallet
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Mortgage Rates Today – Friday, September 26, 2025

NerdWallet’s daily mortgage‑rate roundup gives home‑buyers and homeowners alike a quick snapshot of the market and a sense of where the Federal Reserve’s monetary policy is heading. On Friday, September 26, 2025, the average rates for the most common fixed‑rate loans were on the higher end of the 2025 curve, reflecting the ongoing tightening cycle that began in early 2024 and the Fed’s continued focus on curbing inflation.

What the Numbers Say

These figures are based on the 30‑day average of the three largest mortgage lenders—Bank of America, Chase, and Wells Fargo—together with a handful of regional banks and credit unions. The 30‑year fixed rate sits just below 6.80 %, a level it has hovered around since late July, while the 15‑year fixed remains roughly 1 % lower, as expected given its shorter amortization schedule and typically more favorable terms for borrowers who can handle higher monthly payments.

The 5/1 ARM, which locks in an initial rate for five years before resetting annually, sits at 6.32 %. The 10/1 ARM, on the other hand, offers a slightly higher initial rate but spreads the adjustment period over ten years, reflecting a modestly higher risk for lenders. Finally, the 30‑year Jumbo—used for loans that exceed the conventional limit—has slipped past the 7 % mark, underscoring the premium lenders charge for larger, riskier loans.

The Forces Behind the Rates

Federal Reserve Policy

The Fed’s policy stance continues to be the dominant driver of mortgage rates. In early 2025, the Fed had already raised the target federal‑funds rate from 4.75 % to 5.25 % in a bid to bring inflation back down to its 2 % goal. That tightening cycle has translated into higher yields on U.S. Treasuries, which are the benchmark for mortgage‑loan pricing. The 10‑year Treasury yield is currently trading around 3.85 %, pushing the spread that mortgage lenders add on to roughly 2.9 % – a figure that keeps the 30‑year fixed hovering in the 6.7‑7.0 % range.

Inflation Outlook

Inflation, which peaked at 4.2 % in the summer of 2024, is now trending toward 3 % as consumer prices slow. Still, the Fed’s dual mandate keeps it wary, and it signals that further rate hikes may be possible if inflation remains sticky. In such a scenario, mortgage rates could see another bump of 0.10‑0.25 % over the next few quarters.

Housing Market Conditions

The housing market itself is a significant counter‑balance. In most regions, inventory remains tight, keeping demand high. In the Sun Belt and parts of the Midwest, price growth has slowed slightly, but the supply crunch keeps sellers in a strong negotiating position. As a result, lenders are less inclined to offer aggressive discounts, which helps keep rates stable.

How These Numbers Affect You

Buying a New Home

If you’re looking to lock in a rate today, the current 30‑year fixed at 6.78 % is close to the median of the past three years. That means you’ll be paying roughly 1.5 % more than a buyer who closed in mid‑2023. However, the 15‑year fixed offers a lower monthly payment than the 5/1 ARM, and because it is fixed for the entire loan term, you avoid the risk of rate adjustments after the initial period.

A quick calculator on NerdWallet’s site (linked in the article) shows that a $350,000 loan at 6.78 % would have a monthly payment of about $2,200 (principal + interest) versus $2,300 on the same loan at 7.02 %. Over the life of a 30‑year loan, that difference amounts to roughly $45,000 in interest paid.

Refinancing

If you already own a home and have a mortgage at a lower rate, the high cost of refinancing today may not be worth it. With the 30‑year fixed at 6.78 %, you would need to pay at least $10,000 in closing costs to break even on a $250,000 loan, which could take 8‑9 years to recoup. The article links to a dedicated NerdWallet guide on “When Refinancing Makes Sense,” which uses a quick break‑even calculator that takes into account current rates, loan balances, and closing costs.

Renting vs. Buying

The article also notes that in many markets, the cost of renting has outpaced mortgage rates in recent months. In cities like Austin, the average rent for a two‑bedroom apartment is $2,500 per month—comparable to the monthly mortgage payment on a $350,000 loan. However, a long‑term mortgage provides equity accumulation, which can be a strong advantage if you plan to stay in the home for a decade or more.

Key Take‑aways

1. Mortgage rates have plateaued at the high‑6 % range for the 30‑year fixed and at 5.8 % for the 15‑year fixed.
2. The Fed’s stance on tightening remains the primary influence; any future hikes could push rates up 0.10‑0.25 %.
3. Inventory constraints keep lenders from offering large discounts, maintaining the current rate levels.
4. First‑time buyers might still find attractive 15‑year terms, while seasoned buyers may benefit from lock‑in rates or the possibility of a 5/1 ARM if they plan to refinance before the first adjustment.
5. Refinancing today is generally not advisable unless you’re in a low‑cost region or have a very short remaining loan term.

Resources for More Detail

The original NerdWallet article offers a wealth of supplemental links:

• Mortgage Calculator – A built‑in tool that lets you input loan amount, rate, and term to see monthly payments and total interest.
• First‑Time Homebuyer Guide – An overview of down‑payment assistance programs and credit‑score requirements.
• Refinance Calculator – Helps you determine whether a refinance is worth it, taking into account closing costs and new rate.
• Fed Policy Overview – A short explainer on how the Federal Reserve’s policy decisions affect everyday borrowers.

These tools provide a solid foundation for making informed decisions in a market that continues to evolve as quickly as the rates do. Whether you’re buying, refinancing, or simply monitoring the market, staying up‑to‑date with daily snapshots like NerdWallet’s “Mortgage Rates Today” is essential to navigating the financial landscape of 2025.