Mortgage Interest Rates Forecast

Mortgage rates this week

Mortgage rates dropped to their lowest level in nearly a year, with the average 30-year fixed falling 16 basis points to 6.46% APR in the week ending Sept. 11, according to Zillow. That’s the lowest level since October 2024, and it’s already sparked a wave of refinancing activity as some homeowners lock in lower payments.

Refinancing applications made up almost half of all mortgage applications last week, the Mortgage Bankers Association reports. That’s a clear sign borrowers are reacting quickly to rate drops.

Economists say rates have eased as job growth slows and markets anticipate a Fed rate cut at next week’s meeting. But with inflation still running above the Fed’s 2% target, mortgage rates could bounce higher again if investors worry the central bank isn’t doing enough to keep prices in check.

»MORE: Why This Fall Could Be Friendly to Home Buyers

September Mortgage Rates Forecast

Mortgage rates are expected to stay steady through early September, but their next move depends on the Federal Reserve’s Sept. 17 meeting. The Fed faces a balancing act between stubborn inflation and slowing job growth, and while investors widely expect a rate cut, the outcome isn’t certain.