Today’s mortgage Rates - September 28, 2025: Rates rise Notably, Borrowing Costs Go Up
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WASHINGTON, D.C.- Mortgage rates experienced a notable increase this week, pushing borrowing costs higher for prospective homebuyers and possibly cooling the housing market, according to data released today by Freddie Mac. The average 30-year fixed-rate mortgage climbed to 7.85%, up from 7.62% last week. This marks the highest level seen since early November 2023 and represents a meaningful shift after a period of relative stability.
The rise in rates comes as the Federal Reserve continues to navigate a complex economic landscape,balancing efforts to curb inflation with concerns about slowing economic growth. Even a small increase can have a substantial impact on affordability. A one percentage point rise in the 30-year fixed rate translates to about $22 more per month or roughly $264 extra per year-not small for many families budgeting tightly. This latest jump adds further pressure to potential buyers already grappling with elevated home prices and limited inventory.
Housing market Outlook in the Face of Rising Mortgage Rates
Mortgage rates, as the National Association of Realtors (NAR) puts it, are a ”magic bullet” that directly influence housing demand and affordability. With rates rising or staying elevated:
* Homebuyers face higher borrowing costs, potentially keeping some on the sidelines.
* Homeowners locked into low rates may delay selling, limiting inventory.
* Sellers encounter a mix of fewer buyers and persistent price pressure, especially in supply-constrained markets.
However, recent commentary from the Federal Reserve suggests a potential pause in rate hikes in the coming months, contingent on continued moderation in inflation. Analysts predict a gradual easing of mortgage rates in the first half of 2026, but caution that significant downward movement is unlikely without a more substantial shift in the economic outlook.
Capitalize Amid Rising Mortgage Rates
With mortgage rates expected to remain elevated in the near term, it’s more critically important than ever to focus on strategic real estate investments that offer stability and passive income.
Norada delivers turnkey rental properties in resilient markets-helping you build steady cash flow and protect your wealth from borrowing cost volatility.
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