09/29/2026
🏠 WAITING FOR INTEREST RATES TO DROP? READ THIS FIRST.
Yesterday, the Federal Reserve raised its benchmark interest rate by another 0.25 percentage points.
And mortgage rates have moved higher too.
According to Freddie Mac, the average 30-year fixed mortgage rate is now 6.95%, up from 6.76% just one week ago. (Freddie Mac)
A fraction of a percent might not SOUND like much.
But when you're financing a house for 30 years?
It can be thousands and thousands of dollars.
💰 LET'S PUT REAL NUMBERS TO IT.
Take a $250,000 mortgage, 30-year fixed, principal and interest only:
At 6.95%:
➡️ About $1,655/month
If rates rise just another 0.25% to 7.20%:
➡️ About $1,697/month
That's roughly $42 MORE every month.
Over 30 years, that's about $15,000 more out of your pocket.
And what if today's rate climbs a full percentage point?
At 7.95%:
➡️ About $1,826/month
That's about $171 MORE every month than 6.95%.
Over the life of the loan, that's roughly $61,500 in additional interest.
At 8.95%?
➡️ About $2,003/month
That's nearly $348 more every single month compared with today's 6.95% rate.
That's more than $125,000 in additional interest over a 30-year mortgage.
⚠️ AND HERE'S THE PART PEOPLE FORGET...
Today's rates are NOT historically extreme.
Go back through American mortgage history:
📍 Early 1970s: rates were already around 7%
📍 1974: mortgage rates reached about 10%
📍 Late 1979: rates approached 13%
📍 1980: rates climbed above 16%
📍 1981: the 30-year mortgage rate hit an all-time high of 18.63%. (FRED)
Think about that for a second.
A $250,000 mortgage at 18.63% would have a principal-and-interest payment of roughly:
💥 $3,896 PER MONTH.
The same $250,000 borrowed at today's 6.95% is approximately:
✅ $1,655 PER MONTH.
History doesn't mean we're headed back to 18%.
Nobody can honestly promise where mortgage rates will go next.
But history DOES prove one thing:
Interest rates do not have to fall just because people are waiting for them to.
In fact, Fannie Mae's September housing forecast still projects the 30-year mortgage rate averaging roughly 6.8% in late 2026 and about 6.7% through 2027, meaning its current forecast does not anticipate a return to the ultra-low mortgage rates buyers became accustomed to a few years ago. Forecasts can change, especially after new economic data and Fed decisions. (Fannie Mae)
🏡 So if you've been sitting on the sidelines waiting for 3%, 4%, or even 5% rates to magically come back, understand what you're betting on.
You aren't just waiting on a lower rate.
You're also risking:
📈 Higher borrowing costs
📈 Higher home prices
📈 A larger monthly payment
📈 Less purchasing power
If the right house is available, the payment works within your budget, and you're financially ready to buy, don't let the dream of a future rate that may never arrive keep you from making a move today.
You can refinance a mortgage later if rates fall.
You can't go back in time and buy today's house at today's price.
🏠 Buy when the numbers work for YOU. Don't build your entire home-buying plan around hoping rates go down.
