Markets·Oct 9, 2026
30-Year Mortgage Rate Hits 7.41%, Cutting Home Buyers' Budgets by $30,000 in a Month
Rates have climbed 67 basis points over the past month, pushing more buyers toward adjustable-rate mortgages and mortgage points to offset the increase.
The average 30-year fixed mortgage rate rose 15 basis points to 7.41% APR in the week ending October 8, marking the fourth straight week of double-digit increases, according to rates NerdWallet tracked through Zillow. Over the past month, rates have jumped 67 basis points.
That increase has already cost buyers real purchasing power. A buyer who can afford a $3,000 monthly principal-and-interest payment could have bought up to a $463,000 home a month ago; at today's rate, their maximum is $432,900 — a loss of more than $30,000 in buying power in just four weeks.
The rising rates have pushed some buyers toward adjustable-rate mortgages, which real estate tech firm ICE Mortgage Technologies says have been gaining popularity in recent months. As of August, when rates were nearly a percentage point lower than today, one in eight borrowers were already paying to buy down their rate with mortgage points, according to ICE Mortgage Technologies — a share likely to have grown as rates kept climbing.
From Rotation
Every story, one email, 8am daily.
Subscribe at the bottom of this page.