Mortgage rates have soared since early September. The average 30-year fixed mortgage rate finally reached 7.5% on Monday, Sept. 28, according to Mortgage News Daily data, its highest point since April 30, 2024.
Matthew Graham, COO of Mortgage News Daily, said that oil prices no longer seem to be the main reason behind mortgage rate increases. Oil prices fell on Sept. 28, but mortgage rates stayed high.
“The other factors are a laundry list of usual suspects: strong economic data, anxiety regarding incoming data being stronger as well, supply/demand issues in the Treasury market, elevated bond market supply in general, etc.,” Graham wrote.
Below, we break down insights on the latest mortgage rate trends from real-estate platforms Zillow and Redfin. Both companies offer insight into how current mortgage rates are affecting — and could continue to affect — the housing market
Zillow: Rising mortgage rates reshape housing and rental markets
“For the first half of 2026, home shoppers had better buying power than a year ago,” senior economist Kara Ng wrote for Zillow. “That advantage officially ended in August.”
The Zillow August Market Report showed that the monthly mortgage payment on a typical home is 2% higher than a year prior. As mortgage rates rise, housing payments rise along with them.
The for-sale housing market slumped in August, and Zillow named mortgage rates as “the primary culprit.”
Meanwhile, the rental market has been experiencing more growth, both in terms of demand and pricing.
“The rental market shows signs of absorbing sidelined demand, with rents rising 2.5% year over year, nearly double the rate of home value growth,” Zillow wrote.
Zillow expects rent growth to continue outpacing home-sale growth in 2026. At the start of the year, Zillow predicted 0.3% annual rent growth in Q4. In the Zillow September 2026 Forecast, the company projected a 2.1% year-over-year rental increase.
As mortgage rates increase, home sales are down and rentals are up.
Redfin expects mortgage rates to stay high
Would-be homebuyers are hoping mortgage rates will drop significantly soon. But Redfin doesn’t see that happening.
Mortgage rates have increased since early September for several reasons, one being investors’ anticipation of the Federal Reserve hiking the federal funds rate at its Sept. 15-16 meeting. Rates had already surpassed 7% by Sept. 10, according to MND, as a rate hike became more and more probable.
“The Fed hiked by 25 bps as expected and officially projected another hike this year, but Chairman Warsh’s remarks suggest more may be on the way,” Chen Zhao, head of economics research, wrote for Redfin.
More Mortgage Rates, Housing Market:
- Mortgage rates just surpassed 7%. Here’s why they’re rising
- Redfin says October could be the best time to buy a house
- Lennar delivers harsh reality check for housing market
If investors expect more federal funds rate increases, mortgage rates could continue rising.
“Until the underlying economic fundamentals — everything from oil prices to AI — that are keeping rates high change, mortgage rates are unlikely to fall significantly,” Zhao said.
With no drastic rate drop in sight, renting may indeed continue its uptick through the end of 2026 and well into 2027. Those hoping to buy a house should consider whether they can truly afford the down payment and monthly payments.
