Average mortgage and refinance interest rates reached a range of 6% to 7% as of September 15, 2026, according to national data. These figures represent an increase from 2020, when rates for similar loans were between 2% and 3%. Taylor Jessee, a Certified Financial Planner and founder of Impact Financial, noted that borrowing has become more expensive as the Federal Reserve has increased interest rates over the past two years. However, Jessee stated that if the Federal Reserve stops raising rates, mortgage rates are likely to stop going up.
The Consumer Financial Protection Bureau (CFPB) reports that the best interest rates are typically reserved for borrowers with credit scores in the mid- to high-700s or above. Prospective homebuyers and those seeking to refinance face a market characterized by these rates and a limited inventory of available homes. To improve chances of qualifying for a better rate, the CFPB and other experts recommend that consumers pay bills on time, review credit reports for errors, and avoid applying for other credit shortly before seeking a mortgage. Additionally, experts advise comparing multiple lenders, as terms and closing costs vary.
If the Federal Reserve continues to adjust interest rates, further fluctuations in mortgage costs are possible. Borrowers are encouraged to calculate the total cost of new loans, including closing costs and fees, to ensure the long-term expense is affordable. Consumers may look to upcoming Federal Reserve meetings for potential decisions regarding interest rate adjustments.