Money · Explainer
Mortgage Rates Today: The 30-Year Is 7.37% — and Forecasters Say 7% Is the New Normal
Mortgage searches spike every time rates move, and this week they moved the wrong way for buyers hoping for relief. Here are today's numbers, why rates climbed back above 7%, and what the major forecasters expect next.
Today's rates
| Loan | Today (Oct 21) | A week ago | Change |
|---|---|---|---|
| 30-year fixed | 7.37% | 7.47% | −0.10 |
| 15-year fixed | 6.75% | 6.82% | −0.07 |
Rates eased slightly this week but remain near their highest levels since November 2023. The round trip has been brutal: the 30-year average bottomed at 6.01% in February 2026 — its lowest since September 2022 — before climbing more than a full point into the mid-7s.
Why rates went back up
Three forces did it. First, the Federal Reserve actually raised its benchmark rate at its September meeting, the opposite of the cuts buyers had been waiting for. Second, inflation has stayed stubborn, keeping the Fed from easing through 2026. Third, the conflict involving Iran pushed oil above $100 a barrel, rattling the bond market — and mortgage rates follow the 10-year Treasury yield, which spiked above 5.3% in late September before settling near 5.1%.
What it costs in real dollars
On a $400,000 loan, principal and interest at today's 7.37% runs about $2,761 a month. At February's 6.01% low, the same loan cost about $2,401 — a difference of roughly $361 a month, or more than $130,000 over the life of the loan if the rate never changed. That's the affordability squeeze in one number.
The outlook
Don't hold your breath, say the forecasters. Fannie Mae now expects rates in the 7.50% range for all of 2027 — a sharp reversal from its earlier 6.20% projection — and the Mortgage Bankers Association likewise expects the 30-year to stay above 7% through 2027. The Fed meets again in late October; futures markets expect it to hold steady. The one lever fully in a buyer's control: Bankrate's research finds borrowers who take the first quote typically overpay by about $3,343 a year, so three competing quotes matter more in this market than in any recent one.
Sources: Bankrate national lender survey via the Wall Street Journal (rates for October 21, 2026 and the prior week); Bankrate mortgage-rate history (2026 low of 6.01% on February 19, 2026); Freddie Mac Primary Mortgage Market Survey (7.40% for the week ending October 15, 2026); Fannie Mae and Mortgage Bankers Association forecasts as reported by the Wall Street Journal. Rates are national averages and change daily; your quote depends on credit, down payment and loan type. Information only, not financial advice.