Mortgage Rates Hold at 6.7% as Energy Costs Fuel Affordability Squeeze
The 30-year fixed mortgage rate averaged 6.66–6.73% in early September 2026, hovering at its highest level in over a year amid concerns about sticky energy prices and inflation. Rising oil prices driven by Middle East tensions are keeping rates elevated despite modest recent easing.
As of early September 2026, the average 30-year fixed mortgage rate held steady around 6.66–6.73%, marking the highest weekly average since June 2025. The persistence of these elevated rates reflects ongoing geopolitical uncertainty, particularly crude oil prices near $92 per barrel following OPEC+ production cuts.
Why are rates stuck high?
- Energy price spiral: Oil prices jumped past $92 after OPEC+ signaled year-end production cuts, pushing the 10-year Treasury yield to 4.79%. Rising energy costs feed inflation expectations, the main driver keeping mortgage rates elevated.
- Fed policy uncertainty: The Federal Reserve's next decision comes September 16. Markets are pricing roughly a 50–55% probability of a rate hike, meaning mortgage rates could move higher depending on Fed signals.
- Affordability crisis widens: Higher mortgage rates combined with stubborn home prices continue to squeeze first-time homebuyers and anyone looking to refinance.
Financial experts suggest comparing rates across multiple lenders and reconsidering fixed versus adjustable products, though refinancing generally makes sense only if new rates drop at least 1–2 percentage points below your current mortgage.
For foreign residents: If you're planning to buy a home or refinance an existing mortgage, rates are unlikely to fall sharply in the near term. Locking in now at 6.7% may be preferable to gambling on a September Fed cut that looks less likely. International buyers especially should factor in currency fluctuations if sending money from abroad.
Sources
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