Your Guide to Bargain Hunting With Mortgage Rates Above 7%
However, these factors do not influence our editors' opinions or ratings, which are based on independent research and analysis. Our partners cannot pay us to guarantee favorable reviews. Here is a list of our partners. Think like a grocery shopper on a budget: Compare options, find savings and stay flexible. 16 years of experienceExpertiseMortgage lenders and homebuying Published Sep 24, 2026Fact CheckedHow is this page expert verified?NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.More on our editorial rigorAddas a preferred source on Google NerdWallet is committed to editorial integrity.Helpful ResourcesMortgage Interest Rates ForecastMortgage Rate TrackerHow to Get the Best Mortgage RateHow Much House Can I Afford?Mortgage rates remain stuck above 7% as markets brace for more inflation-fighting rate hikes from the Federal Reserve. Meanwhile, a bond-market sell-off this week added fuel to the fire.The average rate on a 30-year fixed-rate mortgage rose 10 basis points to 7.12% APR in the week ending Sept. 24, according to rates provided to NerdWallet by Zillow. (A basis point is one one-hundredth of a percentage point.) We calculate our weekly average using daily APRs recorded over the past five business days.The Fed doesn’t set mortgage rates, but financial markets watch closely for clues about its next move. Last week, the Fed raised its benchmark rate by 25 basis points in a widely expected move to cool inflation, and signaled that more hikes could follow before year-end.But how much and how quickly should the Fed intervene? That’s one of several inflation questions making the bond market jumpy this week. On Thursday morning, the 10-year Treasury yield, a key benchmark for mortgage rates, reached its highest level (again) since 2007.Inflation isn’t going anywhere anytime soon, and it affects everything from gas prices to groceries. When ground beef gets uncomfortably expensive, savvy shoppers rethink the dinner menu. (Pizza beans, anyone?) When mortgage rates rise, rethinking your homebuying plan isn’t as simple — but it’s still possible.With today’s mortgage rates above 7%, use these practical tips to make the numbers work.Budget for uncertaintyA recent study from Realtor.com looked at mortgage rate swings since 2000 and came up with a simple budgeting rule: The farther away your purchase, the more wiggle room you’ll need.Within three months, plan for a half-point swing. At six months, make it three-quarters of a point. A year out, give yourself a full percentage point of breathing room. According to its analysis, these figures will keep you on budget about 80% of the time.Of course, rates could swing in either direction — but for planning purposes, run the numbers for the higher-cost scenario. So if rates are around 7% today and you hope to buy next year, make sure a payment at 8% still works.Start with an online calculator to see how much house you can afford at the high and low end of your mortgage-rate window. When the time comes to lock in a rate, compare offers from at least three lenders to make sure you’re getting the best deal.Explore mortgages today and get started on your homeownership goalsGet personalized rates. Your lender matches are just a few questions away.What's your zip code?Do you want to purchase or refinance?Select your optionPurchaseRefinanceWhat's your property type?Select your optionSingle family homeCondoTownhouseHow do you plan to use this property?Select your optionPrimary residenceSecondary homeInvestment propertyGET STARTEDWon't affect your credit scoreShop seasonallySure, mortgage rates might be higher than they were earlier this year — but fall buyers have advantages that spring and summer buyers don’t.Data from the National Association of Realtors shows the typical home is about 5% less expensive in October and November than in June. As the market slows, fewer competing buyers and longer time on the market can give you more room to negotiate. Sellers who list later in the year may also be motivated to close before the holidays.Focus on the leverage you have instead of wishing for the conditions you don’t. It’s like shopping at the farmers market: In late September, most places have pumpkins, not strawberries. Buyers rarely get every advantage at once.Negotiate with sellersYou can’t haggle over a box of cereal at the checkout counter. But when a home has been sitting on the market, you may have room to make a deal. NAR’s latest existing home sales report showed a 4.9-month supply of homes for sale in August, the highest level in more than 10 years. That shift gives buyers better opportunities to negotiate — but only if you know what to ask for.In a slower fall market, work with your real estate agent to determine which seller concession would help you most. A lower price can shrink your monthly payment for good. Seller-paid closing costs can leave more cash in your pocket for moving and repairs.The mortgage rate itself is up for negotiation, too. You can ask the seller to buy discount points, an upfront fee that you'd typically pay to permanently lower your mortgage rate, or pay for a temporary mortgage rate buydown.The best ask depends on your budget and the conditions of your local market. Focus on the concession that makes buying this particular house work for you.What’s next for mortgage rates?If you’re shopping for a house right now, you may have already locked in your mortgage rate. But if you plan to buy next year, the rate you’ll get is still an educated guess. (Heck, at the start of 2026, many forecasters expected rates to be closer to 6% by now.)Watching the Fed can offer clues about where mortgage rates might go next. Markets currently see almost a 70% chance of a quarter-point hike at the Fed’s Oct. 27-28 meeting, according to CME FedWatch. By December, the odds of another hike — either 25 or 50 basis points — rise to more than 94%.Rate hikes aren’t necessarily a bad thing. While expectations for a Fed rate hike can keep mortgage rates elevated, the hike itself is intended to slow inflation. That could help your budget sooner than later, and eventually bring mortgage rates back down.Explore more onMortgage NewsHow to Move in 2026MortgagesAddas a preferred source on Google NerdWallet Compare, Inc. NMLS ID# 1617539NMLS Consumer Access |Licenses and Disclosures California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812 Insurance Services offered through NerdWallet Insurance Services, Inc. (CA resident license no.OK92033) Insurance Licenses California: California Finance Lender loans arranged pursuant to the Department of Financial Protection and Innovation Finance Lenders License #603L288 You also can open a Cash Account offered by Atomic Brokerage which allows you to earn interest on your cash through a cash sweep program. View Important Cash Account Disclosures. Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates is a bank. Investments in securities: Not FDIC Insured, Not Bank Guaranteed, May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged. NerdWallet™ | 4150 N Drinkwater Blvd, Suite 200, Scottsdale, AZ 85251
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